The Central Bank of Nigeria (CBN) spent a staggering N315.18 billion on currency management in 2024, marking a 306% rise compared to the N77.67 billion spent the previous year. This sharp increase underscores the significant challenges the country faced in stabilizing its cash supply following the disruptions caused by the naira redesign policy.
Currency management costs include the printing, processing, circulation, and destruction of old banknotes. The latest financial reports from the apex bank highlight how these costs ballooned as Nigeria grappled with persistent cash shortages that strained both urban centers and rural communities throughout 2024.
Despite multiple interventions, including emergency measures and directives for banks to consistently load ATMs, cash scarcity lingered. Many Nigerians continued to face long lines and limited access to cash well into the year. In response, the CBN intensified enforcement, penalizing banks that failed to meet cash distribution requirements.
Among the banks sanctioned, Guaranty Trust Bank received the largest fine of N160.4 million after failing compliance checks. Fidelity Bank was fined N27.28 million, while Access Bank paid N5 million for violations related to mishandling naira notes. These penalties reflected the CBN’s strict stance against operational failures that worsened the cash crisis.
Early in 2025, regulatory scrutiny deepened, with nine commercial banks — including Fidelity, First Bank, and Zenith Bank — collectively fined N1.35 billion for breaching cash availability guidelines during the festive season. Each bank faced a N150 million penalty following spot inspections.
Meanwhile, currency outside the banking sector surged by 49.3% in 2024, climbing to N5.13 trillion by December — up from N3.43 trillion a year earlier. Total currency in circulation also rose by nearly 49% to N5.44 trillion. This data points to the resilience of cash usage in Nigeria, especially in informal markets and rural areas where digital payment systems remain underdeveloped.
The central bank’s massive operational push to print new notes, distribute cash nationwide, and withdraw unfit currency has been a costly endeavor. Experts say the over 300% jump in expenses reflects the logistics of handling physical money in a country where cash remains king, despite efforts to encourage digital alternatives.
While 2024 exposed gaps in Nigeria’s currency management framework, the CBN recorded an overall financial rebound. It posted a surplus of N165 billion, a significant turnaround from the N1.3 trillion deficit reported in 2023. The bank credited improved foreign reserves, which rose to $38.8 billion, and tighter operational controls for its stronger financial footing.
However, liquidity management costs also rose sharply to N4.5 trillion, driven by efforts to curb inflation and absorb excess cash from the economy. Despite these challenges, the CBN affirmed its commitment to stabilizing the financial system, though the heavy reliance on cash continues to pose long-term risks for monetary policy execution.
