CBN Vows to Tackle Naira Note Scarcity and Commoditization

The Central Bank of Nigeria (CBN) has pledged to address the increasing commoditization of Naira notes, which has become a widespread issue in the country.

Governor of the CBN, Dr. Olayemi Cardoso, made this commitment at the inaugural Stakeholders’ Conference of the Committee of Heads of Banks Operations (CHBO) in Lagos.

Cardoso, represented by his Senior Special Adviser, Fatai Kareem, complained that Naira commoditization poses a threat to the banking sector and Nigerians’ daily lives. He described it as a process in which the national currency is treated as a tradable asset rather than a means of exchange.

“The Naira is not merely a currency; it embodies our national identity. Its stability is vital for economic growth and development,” he declared.

“The commoditization of the Naira, our national legal tender, has become a critical challenge for Nigeria’s financial ecosystem. It is a problem that not only affects the operations of the banking industry but also the lives of every Nigerian who relies on the currency for his day-to-day transactions,” he added.
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The CBN has outlined strategies to tackle the menace, including enhancing public awareness, strengthening cash management systems, collaborating with law enforcement agencies, and promoting digital payment channels.

Chairman of the Executive Committee of CHBO, Abraham Aziegbe, attributed the commoditization of the Naira to severe scarcity, which led to its monetization.

Over the past two years, Nigerians have faced challenges accessing currency notes shortages, leading to instances where citizens pay premiums for everyday transactions.

The origin of these cash shortages may be traced to the failed 2022/2023 currency redesign program of the Central Bank under former Governor Godwin Emefiele.

Many believe the policy failed because it was essentially politically motivated.

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