The Central Bank of Nigeria (CBN) has warned that persistent abuse and poor handling of the naira are inflating the cost of printing and replacing banknotes, with expenses on currency issuance hitting ₦315.18 billion in 2024.
The figure represents a 306 per cent increase compared to ₦77.67 billion spent in 2023, according to data from the apex bank’s latest financial report.
Speaking at the launch of a nationwide sensitisation campaign on proper naira handling in Abuja on Wednesday, the Deputy Governor, Operations Directorate, Bala Bello, said the situation had become unsustainable.
Bello, who was represented by the Director of Currency Operations and Branch Management Department, Adedeji Adetona, explained that the campaign themed ‘Naira our pride: Handle with care’ was aimed at instilling respect for the currency and discouraging harmful practices.
“The naira is more than a means of payment. It represents our national pride, our sovereignty and our shared destiny as a people.
“Unfortunately, careless practices such as folding, tearing, spraying at social events, writing on notes and outright mutilation undermine the dignity of our national symbol and increase the costs of maintaining it,” Bello said.
He warned that unless corrective measures are taken, the consequences will continue to weigh heavily on Nigerians.
“If we do not act today, poor handling of our notes will continue to raise the cost of printing and replacement, cause frustration in everyday transactions, and weaken confidence in our currency,” he added.
The deputy governor also cautioned against cash hoarding, particularly as the festive season approaches, noting that it denies others access to cash and puts pressure on the system.
“Cash hoarding harms us all. It denies others access to cash, disrupts circulation and puts undue strain on the system. I therefore call on stakeholders to encourage responsible cash use, promote alternative payment platforms, and help curb hoarding,” he said.
Adetona, represented by Deputy Director Kazeem Olatinwo, said the campaign was not only about clean notes but also about restoring public confidence in the financial system. He assured that the bank had made adequate arrangements to ensure a sufficient supply of banknotes during the yuletide season.
Acting Director of Corporate Communications, Hakama Sidi Ali, reminded Nigerians that issuing legal tender and ensuring the availability of clean notes remain core mandates of the CBN under Sections 17, 18 and 19 of the CBN Act 2007.
She stressed that protecting the naira required joint responsibility from citizens, institutions and stakeholders.
This fresh warning follows previous controversies surrounding the naira, including the redesign of ₦200, ₦500 and ₦1,000 notes in late 2022 which triggered widespread cash scarcity and public outcry. The policy was later reviewed by the Supreme Court after banks and customers struggled with an insufficient supply of new notes.
Over the years, the CBN has also cautioned against naira spraying at parties and other forms of abuse, with security agencies making arrests to enforce provisions of the CBN Act.
Despite these efforts, careless handling of the currency has continued to erode its value and increase maintenance costs.
Analysts link the sharp rise in currency issuance expenses to the redesign project, high distribution logistics and the destruction of unfit notes. The apex bank has simultaneously been pushing for a cashless economy, encouraging electronic transactions and mobile money as alternatives to physical cash.
The new sensitisation campaign will extend to all 36 states and grassroots communities to drive behavioural change.
By encouraging collective responsibility, the CBN hopes to curb wasteful practices, reduce the burden of printing costs and preserve the naira as both a financial instrument and a symbol of national identity.
