CBN Raises Alarm: Naira Abuse Driving Up Printing Costs

The Central Bank of Nigeria (CBN) has warned that the abuse and poor handling of the naira are driving up the cost of printing and replacing banknotes. The apex bank issued this warning on Wednesday during the launch of a nationwide sensitisation campaign on proper naira management in Abuja.

Speaking at the event, the Deputy Governor, Operations Directorate, Dr. Bala Bello, represented by the Director of Currency Operations and Branch Management, Dr. Adedeji Adetona, explained that the naira goes beyond being a medium of exchange, describing it as a symbol of national pride, sovereignty, and shared identity.

He expressed concern that careless practices such as folding, tearing, spraying at events, writing on notes, and outright mutilation were undermining the dignity of the naira and placing an enormous financial burden on the country. Bello cautioned that unless immediate steps are taken, Nigerians would continue to bear the cost of frequent reprinting and replacement of damaged notes, which in turn fuels frustration in daily transactions and erodes confidence in the currency.

The campaign, themed “Naira Our Pride: Handle with Care,” is designed to encourage respect for the naira and instill behavioural change across the country. Bello called for collaboration among banks, traders, transport unions, schools, civil society groups, religious leaders, and the media, stressing that safeguarding the naira is a collective responsibility.

He also urged Nigerians to avoid cash hoarding, particularly during the festive season, warning that such practices disrupt circulation, deny others access to cash, and strain the system. Instead, he encouraged wider use of alternative payment platforms to ease pressure on cash demand.

In his remarks, Adetona, represented by Deputy Director Mr. Kazeem Olatinwo, noted that the campaign aims to promote not only clean notes but also greater public confidence in the financial system. He assured that the CBN had made sufficient arrangements to supply banknotes nationwide during the yuletide but emphasised that their proper handling was key to keeping them in circulation.

The Acting Director of Corporate Communications, Hakama Sidi-Ali, also reminded citizens that ensuring the availability of clean and fit notes is one of the core mandates of the CBN as provided under Sections 17, 18, and 19 of the CBN Act 2007. She underscored the importance of citizens’ role in protecting the naira, adding that the bank alone cannot achieve this objective.

Recent figures from the CBN’s 2024 financial report show that the apex bank spent ₦315.18 billion on currency issue expenses in 2024, representing a 306 percent rise compared to ₦77.67 billion in 2023. These costs cover printing, processing, distribution, and disposal of banknotes, with analysts attributing the surge to the printing of new notes, logistics, and the destruction of damaged ones.

The CBN disclosed that the sensitisation exercise will extend to all 36 states and grassroots communities to ensure wider adoption of proper currency handling. The bank expressed hope that the campaign will curb careless practices, cut down escalating costs, and preserve the naira as both a financial instrument and a national emblem.