Currency Abuse Costs Nigeria N315bn In 2024 - CBN

The Central Bank of Nigeria (CBN) has expressed serious concern over the increasing abuse and mishandling of naira notes, warning that such practices are contributing to the soaring costs of printing and replacing the currency.

The apex bank issued the warning in Abuja on Wednesday during the launch of a nationwide sensitisation campaign tagged “Naira Our Pride: Handle with Care.”

Delivering the keynote address, the CBN Deputy Governor in charge of the Operations Directorate, Dr. Bala Bello, represented by the Director of Currency Operations and Branch Management, Dr. Adedeji Adetona, said the naira represents Nigeria’s sovereignty and shared identity, not merely a medium of exchange.

“The naira represents our sovereignty and shared destiny. Sadly, practices such as folding, tearing, spraying at events, writing on notes, and outright mutilation undermine its dignity and raise maintenance costs,” Bello said.

He warned that unless Nigerians change their attitude toward the naira, the cost of maintaining the nation’s currency would continue to rise.

“If we don’t act now, poor naira handling will keep escalating printing and replacement costs, frustrate daily transactions, and weaken public confidence in the currency,” he cautioned.

According to the CBN, the new campaign seeks to instill respect for the naira and encourage behavioural change across the country. Bello stressed that the success of the initiative would depend on collaboration among banks, market associations, transport unions, schools, religious groups, civil society, and the media.

“Every stakeholder has a role. Banks must ensure only clean notes circulate. Traders and transporters must reject naira abuse. Citizens must see themselves as protectors of the naira,” he added.

Bello also cautioned against hoarding cash, particularly ahead of the festive season, noting that the practice disrupts circulation and puts pressure on the financial system. He advised Nigerians to use cash responsibly and embrace digital payment systems to reduce the strain on physical currency.

In his welcome address, Dr. Adetona, represented by Deputy Director Mr. Kazeem Olatinwo, said the campaign was not only about ensuring cleaner notes but also about boosting public confidence in the financial system.

“As the festive season approaches, the Bank has made adequate provisions for cash supply. What’s needed is responsible handling to keep our notes fit for use,” Adetona said.

Acting Director of Corporate Communications, Mrs. Hakama Sidi-Ali, also reminded Nigerians that maintaining clean currency and issuing legal tender remain part of the CBN’s core responsibilities under Sections 17 to 19 of the CBN Act, 2007.

“Protecting the naira is a collective responsibility. Citizens must support the Bank’s efforts by embracing digital payment platforms and treating currency with care,” she stated.

According to the CBN’s 2024 financial report, currency issue expenses hit ₦315.18 billion, marking a 306 percent increase from ₦77.67 billion in 2023. The costs cover printing, processing, distribution, and disposal of damaged notes, which the Bank attributed largely to currency abuse, logistics, and destruction of unfit notes.

To address the issue, the CBN announced that the “Naira Our Pride” campaign will extend across all 36 states and local communities, aiming to promote nationwide awareness and responsible currency handling.

The Bank expressed optimism that shared responsibility and improved handling practices would help reduce maintenance costs and preserve the naira’s integrity as both a transactional instrument and a national symbol.