Naira Redesign Policy Raises CBN’s Currency Issuance Cost To N29.6bn

The naira redesign policy of the Central Bank of Nigeria which was introduced in 2022 has pushed the cost of issuing the currency to N29.6bn in that year and N76.9bn over the period of five years, THE WHISTLER can authoritatively report.

The five-year period analysed by THE WHISTLER are between 2018 and 2022.

Based on the analysis of the 2022 Consolidated Financial Statements released by the apex bank, a total of N29.647bn was spent on currency issuance in 2022.

This is almost doubled the N15.23bn which the CBN spent in 2021.

Further checks by THE WHISTLER revealed that in 2020, the CBN spent N7.47bn; while in the 2019 and 2018 financial periods, the CBN spent N10.2bn and N14.16bn on currency issuance and disposal.

“Currency issue expenses relate to expenses incurred in relation to the printing, processing, distribution and disposal of currency notes,” the apex bank said.

The increase in currency processing and distribution cost could be linked to the naira redesigned policy introduced by suspended CBN Governor, Godwin Emefiele.

Former President Muhamadu Buhari had, in November last year, officially unveiled the newly redesigned naira denominations of N1000, N500 and N200.

Emefiele, who was the then CBN Governor had given a January 31st deadline for the withdrawal of the old notes before circulation it was extended to the end of 2022.

In February this year, Emefiele had while defending the policy said, “Currency management is a key function of the Central Bank of Nigeria, as enshrined in Section 2(b) of the CBN Act 2007.

“Indeed, the integrity of a local legal tender, the efficiency of its supply, as well as its efficacy in the conduct of monetary policy are some of the hallmarks of a great Central Bank.

“Due to persistent challenges that are inundating currency management in Nigeria and undermining our sovereign integrity, the CBN conducted extensive in house analysis and consultation which suggested the need for a policy to redesign some Nigerian banknotes.

“The CBN has also noticed that some politicians are buying the new notes and storing them for political purposes.”

The CBN had insisted that bank customer should use alternative payment methods like the USSD and online banking as an alternative to cash usage.

THE WHISTLER reports that the naira redesign policy had led to severe hardship and economic losses as online banking platforms failed to stand the test, while some bank staff hoarded the new notes.