CBN Announces 306% Rise in Cost of Printing, Distributing, Disposing Naira Notes
- The CBN has released an amount it spent to print, distribute and also disposed naira notes in 2024
- The CBN destroys unfit banknotes regularly under strict security and with the authorisation of Section 18(d) of the CBN Act 2007
- There is a mandate given to Zenith, UBA, Wema and other commercial banks in Nigeria to make cash available
Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The Central Bank of Nigeria (CBN) said it spent N315.18 billion on currency issues cost in 2024
The amount spent is a 306% increase compared to N77.67bn recorded in 2023.
Source: UGC
The apex bank disclosed this in its 2024 financial statement document released on its website and analysed by Legit.ng.
CBN explained that currency issue expenses relate to expenses incurred in relation to the printing, processing, distribution and disposal of currency notes.
CBN currency mandate
Naira notes and coins are printed/minted by the Nigeria Security Printing and Minting (NSPM) Plc and, sometimes, other overseas companies and issued by the CBN.
The CBN is mandated by law to ensure the quality, control and receipt of finished naira banknotes and coins.
Also, Section 18(d) of the CBN Act 2007 authorises the CBN to regularly, under strict security, destroy currency notes and coins withdrawn from circulation deemed unfit.
CBN currency in circulation
In the financial statement the CBN also revealed that as at the end of 2024, banknotes and coins in circulation stood at N5.44 trillion an increase from N3.65 trillion in 2023.
Although there is no breakdown of how much each currency expenses item incurred, in recent months the CBN has been very intentional on ensuring that Nigerians don't experience cash scarcity while also promoting the use e channels, Punch reports.
Recently, the CBN imposed fines of N150 million each on nine Deposit Money Banks (DMBs) for failing to dispense cash via Automated Teller Machines (ATMs) during the festive season.
Source: Getty Images
In a circular announcing the fines the CBN said:
"In a clear message of zero tolerance for cash flow disruptions, the Central Bank of Nigeria (CBN) has sanctioned Deposit Money Banks (DMBs) for failing to make Naira notes available through automated teller machines (ATMs), during the yuletide season.
“Each bank was fined N150 million for non-compliance, in line with the CBN’s cash distribution guidelines, following spot checks on their branches. The enforcement action follows repeated warnings from the CBN to financial institutions to guarantee seamless cash availability, particularly during periods of high demand.
“The affected banks include Fidelity Bank Plc, First Bank Plc, Keystone Bank Plc, Union Bank Plc, Globus Bank Plc, Providus Bank Plc, Zenith Bank Plc, United Bank for Africa Plc, and Sterling Bank Plc.”
Currency in circulation hits new high
In a previous report by Legit.ng, it was revealed that new CBN data has shown an increase in currency in circulation and cash outside banks.
The CBN data reveals that currency in circulation hit a new high of N5,24 trillion in January while cash outside banks stood at N4.74 trillion
The development comes amid an increase in ATM withdrawal charges by CBN, which experts say could spike cash outside the banking system.
PAY ATTENTION: Сheck out news that is picked exactly for YOU ➡️ find the “Recommended for you” block on the home page and enjoy!
Source: Legit.ng
