Again, CBN Issues Warning Against Naira Abuse, Mutilation as Currency Replacement Costs Rise
- The CBN has warned that defacing and mutilating the naira increases the cost of replacing damaged banknotes and disrupts currency circulation
- CBN Governor Olayemi Cardoso launched the Naira Ambassadors Club to educate students on proper currency handling and promote respect for the naira
- He urged Nigerians, especially young people, to help protect the national currency by avoiding practices such as writing on, stapling and spraying banknotes
Legit.ng journalist Victor Enengedi has over a decade's experience covering energy, MSMEs, technology, banking and the economy.
The Central Bank of Nigeria (CBN) has expressed concern over the growing abuse of the naira, warning that the widespread defacing and mishandling of banknotes is driving up the cost of currency management while reducing the lifespan of Nigeria's legal tender.
CBN Governor, Olayemi Cardoso, made the remarks in Abuja during the launch of the Naira Ambassadors Club, an initiative designed to educate students on the proper handling of the national currency and encourage greater respect for the naira.
Source: UGC
According to Cardoso, the apex bank invests substantial resources in producing durable, secure and high-quality banknotes, but the value of that investment depends largely on how Nigerians treat the currency once it enters circulation.
Mishandling of banknotes increases national costs
Cardoso explained that damaged and mutilated banknotes wear out much faster than expected, forcing the Central Bank to spend more money replacing them.
Cardoso said:
“When banknotes are defaced, mutilated or mishandled, they deteriorate more rapidly than expected. This increases replacement costs, disrupts the efficiency of currency circulation and imposes avoidable financial burdens on the nation.”
He stressed that protecting the naira should not be seen as the responsibility of the Central Bank alone, describing it as a collective duty for all Nigerians. According to him, the way citizens treat the country's currency reflects their respect for national values, public resources and Nigeria's identity.
The CBN governor added that the bank would continue to strengthen public confidence in the naira through sustained awareness campaigns, stakeholder engagement and educational initiatives such as the Naira Ambassadors Club.
Naira represents Nigeria's identity and economy
Cardoso described the naira as much more than paper and polymer, noting that it serves as the country's legal tender, facilitates trade and investment, supports economic activities and stands as a symbol of Nigeria's sovereignty.
He pointed out that every banknote carries images of distinguished Nigerians, national symbols and advanced security features that help preserve trust in the country's monetary system.
According to him, preserving the integrity of the currency is essential to maintaining confidence in Nigeria's financial system and ensuring efficient circulation across the economy.
Students tasked with becoming currency ambassadors
Highlighting the importance of education in changing public behaviour, Cardoso said young people have the capacity to influence positive habits within their schools, families and communities.
He explained that the Naira Ambassadors Club was established to raise a generation of students who understand the value of money and appreciate the need to protect the country's currency.
“As Naira Ambassadors, you are expected to become advocates of proper currency handling. You will educate your classmates on why banknotes should not be written on, stapled, mutilated or sprayed at social events. You will encourage responsible currency handling in your homes and communities,” he said.
Cardoso also urged the students to view leadership as influence rather than position, encouraging them to demonstrate patriotism through everyday actions that promote respect for the naira and Nigeria's shared national heritage.
Source: Legit.ng
