Despite the naira scarcity that hit Nigeria in the latter part of 2022, the Central Bank of Nigeria (CBN), and its subsidiary spent N74.84 billion to manufacture and circulate currencies, including new Naira notes during the year.
This marked a significant increase of 40.42% from the N53.29 billion spent in the previous year for currency rollout.
The CBN’s recently published financial statements reveal that in 2022, N29.65 billion was allocated to currency issue expenses, reflecting a substantial 94.66% rise compared to the N15.23 billion spent in 2021.
According to the CBN, currency issue expenses encompass costs tied to printing, processing, distributing, and disposing of currency notes. These expenses are recorded as incurred.
Additionally, costs associated with the production of currency notes and coins were incurred by one of the CBN’s subsidiaries, the Nigerian Security Printing and Minting Plc.
In 2022, this cost of sale amounted to N45.19 billion, indicating an 18.72% increase from the N38.07 billion recorded in 2021. This category of expenses comprises raw materials, employee benefits for production staff, electricity and diesel costs, depreciation, repairs, and maintenance.
In 2022, the total amount of currency in circulation reached N3.01 trillion, showing a decrease of 9.47% from the N3.32 trillion recorded in 2021.
Notably, in October 2022, the then-suspended Governor of the CBN, Godwin Emefiele, announced the release of re-designed naira notes by December 15, 2022. Additionally, specific denominations of existing notes would lose legal tender status by January 31, 2023. This move led to a prolonged cash shortage that had adverse effects on the economy.
