In 2022, the Central Bank of Nigeria (CBN) and its subsidiary expended approximately N74.84 billion to produce and roll out currencies, including new naira notes, according to recently released financial statements. Despite the currency scarcity challenges that plagued the nation in the later part of the year, the CBN’s spending on currency production and rollout increased by 40.42% compared to the previous year’s expenditure of N53.29 billion.
The currency issue expenses, which pertain to costs incurred in the printing, processing, distribution, and disposal of currency notes, witnessed a significant rise. The CBN spent N29.65 billion on currency issue expenses in 2022, reflecting a considerable increase of 94.66% from the N15.23 billion spent in 2021.
The cost of sale, encompassing the expenses associated with the production of currency notes and coins by a subsidiary, the Nigerian Security Printing and Minting Plc, amounted to N45.19 billion in 2022. This marked an 18.72% growth compared to the N38.07 billion recorded in 2021. These costs entail raw materials, employee benefits for production staff, electricity and diesel expenses, depreciation, and repairs and maintenance.
Despite these expenditures, the total amount of currency in circulation decreased by 9.47% in 2022, amounting to N3.01 trillion, down from N3.32 trillion in 2021.
The CBN’s move to release re-designed naira notes by December 15, 2022, and phase out certain denominations of existing notes by January 31, 2023, resulted in a cash crunch that persisted for months, adversely impacting the economy. This decision, announced by the suspended CBN Governor, Godwin Emefiele, was intended to modernize the currency and enhance security features but inadvertently contributed to the economic challenges faced by the nation during that period.
