CBN, NSA go after Naira hawkers, abusers

The Central Bank of Nigeria (CBN) and  Office of the National Security Adviser (ONSA) have pledged to collaborate in the fight to curtail the commoditisation of Naira, which has seen POS operators and merchants sell the Naira for as high as 20 percent to people seeking cash. The Agencies made the commitment at a seminar […]

The Central Bank of Nigeria (CBN) and  Office of the National Security Adviser (ONSA) have pledged to collaborate in the fight to curtail the commoditisation of Naira, which has seen POS operators and merchants sell the Naira for as high as 20 percent to people seeking cash.

The Agencies made the commitment at a seminar organized by the CBN in collaboration with the Office of the National Security Advisor in Abuja yesterday.

The seminar was a gathering of key funding and private stakeholders, including law enforcement and financial institutions to address the issue of Naira commoditization and explore strategies for safe and efficient movement of cash in the country.

CBN Governor, Olayemi Cardoso said recent experiences have brought to light pressing challenges that require immediate attention and closer collaboration.

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The governor argued that addressing the widespread issue of Naira commoditization and abuse requires immediate attention from both regulatory bodies and law enforcement agencies.

He said: “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% to 40% per transaction. 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.

“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. 

“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.”

National Security Adviser, Mallam Nuhu Ribadu 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.

“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. 

“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.”

Ribadu called on stakeholders to commit to actionable arrangements that will enable the country to build a financial ecosystem that is secure, resilient, and inclusive, “one where cash movement is safe.”