CBN, ONSA collaborate to tackle Naira hawking, abuse in economy

*The Central Bank of Nigeria and Office of the National Security Adviser move to join forces in curbing the ‘commoditisation of Naira’ through hawking and other forms of abuse for safe and efficient movement of cash in the economy

Isola Moses | ConsumerConnect

The Central Bank of Nigeria (CBN) and Office of the National Security Adviser (ONSA) have pledged to collaborate in curbing commoditisation of the Naira, the country’s currency.

The CBN and ONSA made the commitment at a recent seminar the Bank organised in collaboration with the Office of the National Security Adviser in Abuja, FCT.

The seminar was a gathering of major funding, private industry stakeholders, law enforcement, and financial institutions to address the issue of Naira commoditisation.

The Bankers’ Bank equally organised the stakeholder engagement to explore strategies for safe and efficient movement of cash in the West African country.

It is noted that commoditisation of Naira is of concern to authorities, as the development has seen the Point of Sale (PoS) operators and merchants sell the national currency for as high as 20 percent to consumers in need of cash.

Naira is symbol of Nigeria’s identity

Speaking at the forum, in Abuja, Dr. Olayemi Cardoso, Governor of CBN, reportedly said recent experiences had brought to light pressing challenges that require immediate attention and closer collaboration in the finance industry.

Cardoso contended that addressing the widespread issue of Naira commoditisation and abuse requires immediate attention from both regulatory bodies and law enforcement agencies.

“Recent mystery shopping exercises conducted in major commercial hubs, such as Abuja, Asaba, Oka, Benin, Ilorin, Kano, and Ibadan, have revealed a disturbing trend of illicit transactions involving banknotes, which demands urgent intervention.

“A critical concern that arises from these transactions is an illegal act and a premium charged on banknotes ranging from 20 percent to 40 percent per transaction,” the CBN Governor stated.

He also averred the gravity of this situation is further highlighted by a recent exercise where banknotes, amounting to N2.3 million, were acquired with a total payment, including premiums of N3.2 million.

Cardoso stated: “The abuse of the Naira is further exemplified by the numerous instances circulating on social media, showcasing the disrespectful treatment of our currency.

“These appalling acts range from manhandling to spraying Naira notes in celebrating events, marching, and even tossing them at footballs. Currency is a reflection of our national pride.”

The CBN Chief added: “When you treat it like that, and you expect others to respect you, it won’t come. “Such blatant disregard for a nation’s legal tender not only undermines the value of the Naira, but also perpetuates a culture of disrespect towards a symbol of our country’s identity.”

In his address on the occasion, Malam Nuhu Ribadu, National Security Adviser (NSA), said: “When all of those who are critical to our economy come to discuss, we will go out and we will see the benefits in all areas, all aspects of our lives.

“And this is just one. And this is an important one.”

Ribadu noted: “Because everything is about money, if you don’t regulate it, if you don’t control it, you are in trouble.

“You will not appreciate the impact and the magnitude of the damage that will be done.”

He equally stated: “Cash shortages disrupt economic activities, limit access to essential services, and erode public confidence in our financial system.

“Therefore, finding sustainable solutions is not only an economic priority, but a national security priority.”

The NSA urged stakeholders to commit to actionable arrangements that would enable Nigeria to build a financial ecosystem that is secure, resilient, and inclusive, “one where cash movement is safe.”