The Central Bank of Nigeria (CBN) reported a sharp rise in currency management costs in 2024, with expenses increasing by over 300% amid the prolonged cash shortages that rattled the economy during the year.
According to the apex bank’s latest audited financial statement, currency issue expenses at the Bank level rose to N315.18 billion in 2024, representing a 305.7% increase compared to N77.67 billion in 2023.
Similarly, at the Group level, costs jumped dramatically to N238.65 billion from just N1.11 billion in the previous year, an unprecedented spike that highlights the scale of intervention efforts.
Currency issue expenses cover the printing, processing, distribution, and disposal of currency notes.
The CBN explained that the surge reflects the operational demands of managing cash supply across the country, especially during periods of acute shortages.
The surge comes against the backdrop of a major cash crisis that swept across Nigeria during early 2024, largely linked to disruptions following the naira redesign policy initiated in late 2022.
While the policy aimed to drive financial inclusion and reduce cash-related crimes, it inadvertently triggered significant cash shortages, forcing the CBN to ramp up currency production and logistics operations to stabilise the financial system.
The apex bank’s currency operations involved not just the mass printing of new notes but also the retrieval and destruction of old notes, a process that attracted high operational costs due to nationwide distribution challenges.
Despite the Central Bank of Nigeria (CBN)’s emergency measures, cash access difficulties and queues persisted in early and late 2024. The CBN intensified enforcement against Deposit Money Banks (DMBs), sanctioning non-compliant institutions and strengthening cash distribution oversight. Three major banks, Guarantee Trust Bank, Fidelity Bank, and Access Bank, paid a combined N192.68 million in fines for infractions related to cash distribution failures. In early 2025, nine commercial banks were fined N1.35 billion each for failing to comply with cash availability directives during the 2024 yuletide season.
