Naira printing costs skyrocket by 306%

 

The Central Bank of Nigeria spent N315.18bn on currency issue expenses in 2024, marking a sharp increase of 306 per cent compared to N77.67bn recorded in 2023, the apex bank’s audited financial statement for the year has shown.

Currency issue expenses cover the printing, processing, distribution, and disposal of banknotes.

The latest figures reveal that the CBN’s cost of managing physical cash spiralled dramatically during the year under review, as Nigeria grappled with lingering cash shortages and disruptions in the money supply chain.

The surge in expenditure came as the country continued to deal with the effects of the naira redesign policy introduced in late 2022.

Despite efforts to stabilise cash circulation throughout 2023, Nigerians still faced queues at ATMs and difficulties in accessing cash in early and late 2024.

Faced with mounting public outcry, the CBN deployed several emergency measures to address the crisis.

Deposit Money Banks were directed to ensure consistent ATM loading and rural cash distribution, while the Bank also launched public hotlines for citizens to report cash scarcity incidents.

Also, the CBN ramped up enforcement efforts, including deploying monitoring teams, issuing sanctions against non-compliant banks, and mandating improved cash distribution.

The PUNCH further learnt that three Nigerian banks, Guaranty Trust Bank, Fidelity Bank, and Access Bank, paid a combined N192.68m in fines to the Central Bank of Nigeria in 2024 for various infractions linked to cash scarcity and currency management failures.

Details from the audited financial statements of the banks show that GTB bore the highest penalty, paying N160.40m for infractions uncovered during the CBN’s Mystery Shopping Exercise carried out in 2024.

The exercise, conducted discreetly across bank branches and ATMs, was aimed at assessing compliance with cash distribution mandates following widespread shortages that disrupted daily economic activities.

Fidelity Bank was fined N27.28m in 2024 for penalties relating to cash shortages identified by the CBN.

The apex bank had intensified monitoring efforts to ensure banks maintained sufficient cash availability, particularly in rural and underserved areas where cash dependency remained high.

Access Bank, meanwhile, was penalised N5m for contravening regulations linked to mystery shopping inspections involving the confiscation of unfit or hoarded naira notes.

The bank’s infraction underlined the CBN’s focus on ensuring proper handling of both new and old currencies during the recovery period from the 2023–2024 cash scarcity.

The combined N192.68m in penalties paid by the three banks affirmed the CBN’s zero-tolerance stance towards operational lapses that hindered public access to cash during the period.

In fact, regulatory scrutiny on currency management intensified as nine commercial banks were fined a combined N1.35bn for failing to comply with cash availability directives early in 2025.

According to a CBN statement, each of the banks was fined N150m following spot checks that revealed non-compliance with the apex bank’s cash distribution guidelines.

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.

The fines will be directly debited from the banks’ accounts with the CBN.

The statement read, “In a clear message of zero tolerance for cash flow disruptions, the Central Bank of Nigeria has sanctioned Deposit Money Banks for failing to make Naira notes available through automated teller machines, during the yuletide season.

“Each bank was fined N150m 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.”