Naira Abuse is driving up printing cost - CBN Warns

Naira Abuse and the Soaring Cost of Currency: A Wake-Up Call from the CBN

In a sobering revelation that underscores the financial and symbolic toll of currency mishandling, the Central Bank of Nigeria (CBN) has issued a stern warning: the abuse of the naira is driving up the cost of printing and replacing banknotes at an alarming rate.

This caution came during the launch of a nationwide sensitisation campaign held in Abuja, themed “Naira Our Pride: Handle with Care,” aimed at instilling respect for the national currency and encouraging behavioural change.

According to the CBN’s 2024 financial report, the apex bank spent a staggering ₦315.18 billion on currency issue expenses, a 306% increase from the ₦77.67 billion recorded in 20232. These costs encompass printing, processing, distribution, and destruction of old notes, all of which are exacerbated by careless practices such as folding, tearing, spraying at social events, writing on notes, and outright mutilation.

The Deputy Governor of Operations, Bala Bello, represented by Dr. Adedeji Adetona, emphasized that the naira is more than a medium of exchange; it is a symbol of national pride, sovereignty, and shared destiny. He warned that continued abuse would not only inflate replacement costs but also erode public confidence in the currency and disrupt everyday transactions.

The campaign also highlighted another pressing concern: cash hoarding. As the festive season approaches, Bello cautioned that hoarding denies others access to cash, disrupts circulation, and places undue strain on the monetary system. He urged stakeholders, including banks, market operators, transport unions, civil society, and the media, to promote responsible cash use and encourage the adoption of alternative payment platforms to ease pressure on physical currency.

Acting Director of Corporate Communications, Hakama Sidi-Ali, reinforced that issuing legal tender and maintaining clean notes are core mandates of the CBN under Sections 17, 18, and 19 of the CBN Act 2007. She called on Nigerians to take ownership of protecting the naira, stressing that the task cannot be accomplished by the apex bank alone. The campaign is not merely about clean notes; it is about restoring public confidence in the financial system and preserving the dignity of the naira.

As Nigeria braces for increased cash demand during the yuletide season, the CBN has assured the public of adequate banknote supply.

However, the message is clear: proper handling is essential to extend the lifespan of the currency and reduce avoidable costs. The naira, as a national symbol, deserves respect. Its preservation is a collective responsibility, one that demands immediate and sustained action from every citizen.