CBN Shares 5 Plans To Stop Buying, Selling of Naira Notes
- The CBN has revealed plans to work with law enforcement agencies to crack down on the buying and selling of naira notes
- The apex bank described the activities as disturbing and has vowed to stop the practice nationwide
- Currently, PoS operators charge N300 for cash withdrawals of N100,000 and N150 for withdrawals below N5,000
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Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Olayemi Cardoso, the governor of the Central Bank of Nigeria (CBN), said the apex bank will be working with law enforcement agencies to crack down on the illegal buying and selling of naira notes.
Speaking at the inaugural Stakeholders’ Conference of the Committee of Heads of Banks Operations (CHBO) in Lagos, themed “Commoditisation of the Naira: The Way Forward,” the CBN governor described the practice as highly inappropriate.
Source: Getty Images
At the event, Cardoso was represented by Fatai Kareem, the senior special adviser to the CBN governor. Kareem stated that the commoditisation of the Nigerian currency threatens not only the banking sector but also the daily lives of Nigerians who rely on it for transactions.
He described commoditisation as a process by which the national currency is treated as a tradable asset with its intrinsic national value being subjected to the principles of capitalism rather than being seen as a means of exchange for economic and items of value.
His words:
“The naira is not merely a currency; it embodies our national identity. Its stability is vital for economic growth and development.
"Recent trends, however, have seen the naira treated as a commodity rather than fulfilling its primary function as a medium of exchange.
“The commoditisation 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 that relies on the currency for his day to day transactions.”
Here is a snapshot of how CBN plans to tackle commoditisationation of naira
Vanguard reports that the CBN stated that it plans to tackle commoditisationation of the naira through the following measures:
- Enhancing public awareness and engagement on the responsible use of the naira.
- Strengthening the cash management system to ensure fair distribution across the country.
- Collaborating with law enforcement agencies to enforce existing regulations and bring perpetrators to justice.
- Promoting digital payment channels to reduce cash transactions.
- Addressing digital errors through banks and the CBN
Money outside banks
Legit.ng previously reported that the latest CBN data showed that the total currency in circulation had hit N4.14 trillion, with N3.87 trillion currently outside the Nigerian banking system.
The development showed that 93.34% of Nigeria’s currency is in the hands of Nigerians and businesses, while 6.66% is in the banking sector.
The gap between the currency outside the banks and the total currency in circulation suggested that Nigerians still depend massively on cash for daily transactions.
Proofreading by James, Ojo Adakole, journalist and copy editor at Legit.ng.
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Source: Legit.ng
