The Central Bank of Nigeria (CBN) incurred approximately ₦74.84 billion in expenses during 2022 due to the naira redesign policy and other currency-related matters. These expenses encompassed the printing, processing, distribution, and disposal of currency notes, including factors like raw materials, employee benefits, utility costs, and maintenance.
In 2022, the CBN spent ₦29.65 billion solely on currency issue expenses, indicating a substantial increase of 94.66% from the ₦15.23 billion spent the previous year. Concurrently, the Nigeria Security Printing and Minting (NSPM) Plc, responsible for producing currency notes and coins, reported a cost of sale (expenses) of ₦45.19 billion, marking an 18.72% rise from 2021's ₦38.07 billion.
When combining the expenses of both the CBN's currency issue and NSPM's cost of sale, the total expenses for the apex bank amounted to ₦74.84 billion, reflecting a 40.42% increase from the ₦53.29 billion expended in 2021.
The naira redesign policy involved the introduction of new ₦1000, ₦500, and ₦200 notes while phasing out older notes. Although the policy aimed to enhance the currency system, it triggered a significant currency crisis in Nigeria. Former CBN governor Godwin Emefiele had initiated the redesign following a federal government request, despite the subsequent challenges it posed.
Credit: Pulse Ng