CBN warns against naira abuse, says it increases printing cost

The Central Bank of Nigeria (CBN) has warned that the abuse and poor handling of naira banknotes are significantly increasing the cost of printing and replacing them.

The warning came on Wednesday during the launch of a nationwide sensitization campaign on proper naira handling, held in Abuja.

Delivering a keynote address, the CBN’s Deputy Governor, Operations Directorate, Dr. Bala Bello, represented by the Director of Currency Operations and Branch Management Department, Dr. Adedeji Adetona, stressed that the naira is more than just a medium of exchange.

“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—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 action is taken, Nigerians will continue to bear the financial consequences.

“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 ad, titled “Naira Our Pride: Handle with Care,” aims to develop respect for the naira and promote behavioral change. Bello emphasized that the CBN cannot succeed on its own and urged banks, traders, transport unions, schools, public society, religious groups, and the media to work together.

“Every stakeholder has a critical role to play. Banks must educate customers and ensure only fit notes are in circulation. Market operators and transporters must discourage rejection or abuse of naira notes. The media and civil society must amplify this message, while every citizen must see themselves as custodians of the naira,” he explained.

The CBN deputy governor also warned against cash hoarding, particularly as the festive season approaches.

“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,” Bello urged.

According to him, if Nigerians manage their notes appropriately, the naira’s lifespan will be extended, unnecessary costs will be eliminated, and the currency’s symbolic worth will be kept.

In his welcome message, Adetona, represented by Deputy Director Mr. Kazeem Olatinwo, stated that the campaign was about more than just clean notes; it was also about increasing public trust in the financial system.

“As we approach the yuletide, the Bank has made sufficient arrangements to ensure an adequate supply of banknotes nationwide. What is needed is proper handling to keep our notes clean and fit for use,” he said.

Also addressing the issue, Hakama Sidi-Ali, Acting Director of Corporate Communications, reminded Nigerians that issuing legal tender and maintaining the availability of clean notes are essential CBN mandates under Sections 17, 18, and 19 of the CBN Act of 2007.

She emphasized the importance of citizens taking ownership of defending the naira, stating that the task cannot be performed just by the central bank.

“The CBN is committed to enhancing Nigeria’s payment system while protecting consumer rights. Citizens must embrace alternative payment platforms to reduce pressure on cash,” she said.

Data from the CBN’s 2024 financial report revealed the cost repercussions of inefficient currency management. The bank spent N315.18 billion on currency issue expenses in 2024, a stunning 306% increase from N77.67 billion in 2023.

Currency issue expenses include printing, processing, distribution, and disposal of banknotes. Analysts attribute the sharp increase to the printing of fresh notes, redistribution logistics, and the disposal of defective currency.

The CBN announced that the sensitization effort will include all 36 states and grassroots areas to guarantee widespread adoption of correct note handling.

By encouraging communal responsibility, the Bank seeks to eliminate reckless practices, lower the increasing cost of sustaining the naira, and maintain its position as both a financial instrument and a national symbol of unity.