Spending by the Central Bank of Nigeria CBN) on currency issue (printing, processing, distribution, and disposal of banknotes) rose to N315.18 billion in 2024.
This shows a significant increase of 306 per cent compared to N77.67 billion recorded in 2023.
The figure, contained in the bank’s audited financial statement for 2024, shows that the CBN’s cost of managing physical cash spiralled during the review period, as Nigeria grappled with lingering cash shortages and disruptions in the money supply chain.
Nigeria battled cash shortage for a long time, beginning in 2022, after the naira redesign policy.
Efforts to stabilise the situation didn’t yield much result as the situation lingered up to late 2024.
While the situation persisted, the CBN deployed measures including directing Deposit Money Banks to ensure consistent ATM loading and rural cash distribution, ramping up enforcement efforts, including deploying monitoring teams, issuing sanctions against non-compliant banks, and mandating improved cash distribution.
According to data obtained from the CBN’s Money and Credit Statistics, currency outside banks stood at N5.13 trillion as of December 2024, compared to N3.43 trillion recorded in December 2023.
This represents a year-on-year increase of N1.69tn as more physical cash returned into public hands amid efforts to stabilise the money supply system.
Similarly, the total currency in circulation, which captures all cash issued by the apex bank, whether held by banks or the public, rose to N5.44 trillion in December 2024, up from N3.65 trillion a year earlier.
The data indicate a 49.0 per cent year-on-year rise in circulating cash, reflecting the broader push by the CBN to rebuild liquidity following the severe cash scarcity that rocked the economy between late 2022 and early 2024.
The 2024 figures mark a sharp reversal from the 2023 tightening measures introduced alongside the controversial naira redesign programme, which had initially pushed down currency outside banks to historic lows before supply constraints triggered broader economic disruptions.
Currency outside banks accounted for 94.2 per cent of total currency in circulation as at December 2024.
In comparison, in December 2023, currency outside banks represented 94.0 per cent of the currency in circulation.
Following widespread complaints of persistent cash shortages, the apex bank increased the volume of naira notes printed and distributed through Deposit Money Banks.
The CBN also intensified monitoring activities, fined banks for cash distribution failures, and released additional guidelines to enhance ATM cash loading and branch-level cash accessibility.
