CBN Spent N74 Billion on Naira Redesign as Naira Nears N700 Per Dollar

CBN Spent N74 Billion on Naira Redesign as Naira Nears N700 Per Dollar

  • The Central Bank of Nigeria has disclosed the amount it spent on printing the new naira notes
  • The apex bank revealed that the new naira notes gulped over N74 billion, including other currencies
  • The development follows a massive recovery of the local currency against the US dollar

The Central Bank of Nigeria and its subsidiary said they spent about N74.84 billion to print and roll out currencies, including the controversial new naira notes in 2022.

The apex bank said it spent 40.42% more than the N53.39 billion it spent in the preceding year to print new currencies in 2022.

New naira notes, CBN
The Acting Governor of the Central Bank of Nigeria (CBN), Folashodun Shonubi Credit: nairarates
Source: Getty Images

Currency in circulation declines in 2023

The amount is despite the cash scarcity that plagued Nigeria in the latter part of 2022 and early 2023.

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The bank revealed this in its financial statements, saying it spent N29.65 billion on currency issue expenses in 2022, a 94.66% spike from N15.23 billion spent in 2021.

The CBN defines currency issue expenses as expenses incurred on printing, processing, distribution, and disposal of currency notes. It is recognised as a cost when incurred.

The cost of sale, which is the expenses incurred by the Nigerian Security Printing and Minting Plc, a subsidiary of the CBN, in respect of the production of currency notes and coins, was N45.19 billion in 2022, an 18.72% from the N38.07 billion in 2021.

CBN said:

“They include the cost of raw materials, employee benefit expenses relating to production staff, electricity and diesel expenses, depreciation, and repairs and maintenance.”

Punch reports that in 2022, the total amount in circulation was about N3.01 trillion, a 9.47% decline from N3.32 trillion in circulation in 2021.

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In 2020, the total cost incurred on printing bank notes was N58.62 billion, a 28.83% decline from N75.52 billion recorded in 2019, CBN said in its 2020 Currency Report.

Naira recovers massively as CBN issues new directives to BDCs

The development comes as the naira witnessed a massive recovery against the dollar in the Investors and Exporters (I&E) window on Friday, August 18, 2023.

Per figures from the FMDQ, the naira began trading on the I&E window at N761.82 per dollar before closing at N739 per dollar on Friday, August 18, 2023, with a total turnover of $130.9 million.

The development follows CBN’s restriction of Bureau de Change Operators (BDCs) to a specific rate against the official window when buying and selling FX to customers.

The new order is in a circular issued on Friday, August 18, 2023, and signed by CBN’s Director of Trade and Exchange Department, O.S Nnaji, to BDCs.

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Naira exchanges for N740/$ at official market after $3bn NNPC loan, BDC operators' message to CBN reported that according to the circular, the spread on buying and selling by BDC operators must not exceed -2.5% to +2.5% of the Nigerian Foreign Exchange market window weighted average rate of the previous day.

CBN Releases names of approved Bureau de Change Operators in Nigeria to Buy, sell dollars reported earlier that the Central Bank of Nigeria has released a revised list of Bureau de Change operators in Nigeria.

The list published by the bank contains the total number of Bureau de Change operators licenced to buy and sell dollars and other foreign currencies in Nigeria.

Punch reports that the list contains about 2,991 operators across the country.


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