The Central Bank of Nigeria (CBN) and the Office of the National Security Adviser (ONSA) have made a commitment to work together to address the rising issue of the commoditization of the Naira, which has seen some POS operators and merchants charging as much as 20 percent for cash transactions. This pledge was made during a seminar held in Abuja that brought together key stakeholders from various sectors, including law enforcement and financial institutions, to strategize on ensuring safe and efficient cash movement within the country.
CBN Governor Olayemi Cardoso emphasized the need for immediate attention to combat the widespread commoditization and abuse of the Naira, which he noted has presented several pressing challenges. He shed light on alarming results from recent “mystery shopping” exercises conducted in major cities, revealing that illicit transactions involving banknotes have become increasingly common.
Cardoso highlighted an alarming trend where individuals have paid as much as N3.2 million for banknotes valued at only N2.3 million, indicating a disturbing premium charged on transactions, which can range from 20% to 40%. He criticized the disrespectful treatment of the Naira, citing various social media instances where the currency has been mishandled or misused. Cardoso argued that such actions undermine the value of the Naira and discredit the nation’s pride.
National Security Adviser Mallam Nuhu Ribadu echoed these sentiments, stressing that economic activities can be severely disrupted by cash shortages and a lack of regulatory control over currency transactions. He urged stakeholders to engage in actionable strategies that would create a secure and inclusive financial ecosystem in Nigeria. Ribadu remarked that a well-regulated cash movement is critical for national security and economic stability.
Both officials called for collective efforts from the public and other stakeholders to combat smuggling and illicit financial practices that threaten the integrity of the Naira. They emphasized that effective intelligence gathering and inter-agency collaboration are crucial for sustaining the fight against these economic threats.
The discussions at the seminar underscored the growing need for regulatory bodies and law enforcement agencies to work closely to tackle the commoditization of the Naira in order to safeguard Nigeria’s financial health and enhance public confidence in its currency.
