CBN Cautions Nigerians on Currency Misuse, Cites Rising Printing Costs

The Central Bank of Nigeria (CBN) has raised fresh concerns over the growing abuse of the naira, warning that the trend is inflating the cost of currency printing and undermining the integrity of the nation’s legal tender. The apex bank emphasized that careless handling, mutilation, spraying at parties, and hawking of banknotes are driving up expenses in maintaining the quality of Nigeria’s currency, while also eroding public confidence in its use.

The warning comes at a time when the country is grappling with fiscal pressures, with the cost of printing new banknotes steadily increasing due to inflation and foreign exchange volatility. According to the CBN, the more Nigerians mishandle the naira, the faster notes wear out, requiring constant replacement at significant expense to the government. This development has once again thrown the spotlight on the cost implications of safeguarding the currency and the need for collective responsibility among citizens.

Currency management, the CBN explained, is a capital-intensive process that involves designing, printing, transporting, and securing banknotes across the country. The apex bank disclosed that naira abuse adds an extra layer of cost to this already expensive operation. “Every naira note that is sprayed, written on, torn, or mishandled shortens its lifespan and forces the CBN to print more frequently than necessary,” a senior official noted.

This call for responsible handling of the naira ties into the apex bank’s broader campaign to preserve the sanctity of the national currency. In recent months, the CBN has been working with law enforcement agencies to curb acts such as hawking of new notes, hoarding of cash, and the spraying of money at public events, which have been criminalized under existing laws. Officials stress that beyond cultural practices, these acts place a financial burden on the state and diminish the global image of Nigeria’s currency.

The CBN also emphasized that Nigeria’s monetary authorities spend billions of naira annually on printing new banknotes, an amount that could otherwise be channeled into critical areas such as infrastructure, healthcare, and education. Experts note that reducing abuse and extending the lifespan of notes could help minimize this financial strain, ensuring better fiscal discipline.

For ordinary Nigerians, however, the issue goes beyond printing costs. The prevalence of dirty and mutilated notes in circulation has been a long-standing frustration, particularly in rural areas where electronic payment options are limited. Market women, transport operators, and artisans often complain that banks recirculate poor-quality notes, leaving customers to bear the brunt of a deteriorating currency.

Some analysts argue that while public sensitization is critical, the CBN must also intensify efforts to promote digital payment channels. They point out that reducing reliance on physical cash will automatically reduce pressure on the printing of banknotes. The bank itself has repeatedly stressed the importance of cashless policy adoption, noting that electronic transactions not only reduce wear and tear on physical currency but also improve transparency and curb financial crimes.

Nevertheless, cultural attitudes remain a major barrier. The spraying of money at weddings, birthdays, and social gatherings is deeply ingrained in Nigerian society, despite being prohibited by law. Critics argue that enforcement has been weak, with few convictions recorded. They insist that unless the laws against naira abuse are strictly enforced, public awareness campaigns may not yield significant results.

The CBN has also hinted at exploring alternative approaches, including issuing higher-quality polymer notes that last longer than paper-based currency. Some denominations like the N50, N20, and N10 have previously been issued in polymer form, but challenges with production costs and durability led to a partial return to paper notes. With the recurring issue of naira abuse, the debate over the most cost-effective material for banknotes has resurfaced.

At the same time, questions have been raised about the responsibility of commercial banks in addressing the problem. Many customers claim that banks are reluctant to accept soiled or mutilated notes, despite CBN’s directive that such notes must be withdrawn from circulation. Consumer rights advocates have urged the regulator to sanction banks that fail to comply with this policy, as their inaction contributes to the persistence of poor-quality notes in the economy.

In recent weeks, the CBN has also stepped up collaboration with the Nigeria Police Force, the Economic and Financial Crimes Commission (EFCC), and other agencies to track individuals and groups involved in hawking new naira notes at a premium. This practice, officials argue, not only undermines financial stability but also feeds into broader corruption in the system.

While the bank’s latest warning highlights the heavy costs of naira abuse, it also underscores the need for behavioral change. Financial experts stress that preserving the integrity of the currency is a shared responsibility, requiring both institutional enforcement and public discipline. They argue that unless Nigerians treat the naira with respect, the cost of printing and managing the currency will remain unsustainably high.

As the country continues to face economic headwinds, stakeholders are calling for a two-pronged approach: stricter enforcement of anti-abuse laws and greater promotion of cashless alternatives. They believe this strategy will not only cut down printing expenses but also modernize Nigeria’s payment infrastructure.

Ultimately, the CBN’s warning serves as a reminder that the value of a currency extends beyond its purchasing power—it also represents national identity and economic stability. Protecting the naira, both physically and symbolically, is therefore a responsibility every Nigerian must embrace.