Reported by: Ijeoma G | Edited by: Oravbiere Osayomore Promise.
The Central Bank of Nigeria spent a staggering N464 billion on printing, distributing, processing, and disposing of currency notes in 2025, marking a sharp increase in the cost of currency issuance compared to the previous year, the apex bank's latest financial statements have revealed. The expenditure, captured under the bank's currency issuance operations, rose from N238.6 billion recorded in the 2024 fiscal year to N464 billion in 2025, reflecting an increase of more than 94 per cent within one year. Details contained in the financial statements released by the CBN showed that the expenditure covered the printing of new banknotes, their distribution across the country, processing of currency in circulation, and the disposal of unfit notes withdrawn from use. The financial statement indicated that currency issuance remained one of the largest operational expenses incurred by the apex bank during the year under review.
Beyond currency management, the report also showed that the CBN and its subsidiaries recorded N416 billion in personnel-related expenses in 2025. A breakdown of the personnel costs revealed that N56.2 billion was spent on wages and salaries, while N28.2 billion went to defined benefit plan expenses. The financial statement further showed that N226 billion was expended on "other staff allowances," while N87.1 billion was recorded under other staff expenses. The figures highlight the significant operating costs incurred by the apex bank as it carries out its monetary policy, currency management and regulatory responsibilities across Nigeria's financial system.
The increase in currency issuance costs also comes against the backdrop of calls to strengthen the country's payment ecosystem and reduce fraud within digital financial services. Earlier, SaharaReporters reported that Nigeria's digital payment ecosystem recorded fraud losses amounting to ₦25.85 billion in 2025, despite a substantial decline from the ₦52.26 billion recorded in 2024. The figures were contained in the CBN's assessment of risks confronting Nigeria's payments system in 2025, which identified systemic risks, cyber threats, the dominance of a few systemically important payment service providers and the activities of unlicensed payment companies as major vulnerabilities facing the financial sector. According to the report, although the value of fraud losses declined significantly compared to the previous year, payment service providers continued to suffer considerable financial losses, demonstrating that cybercrime and weaknesses in fraud detection remain serious concerns. "Digital payment fraud in Nigeria stood at ₦25.85 billion in 2025," the apex bank said. It added that while the reduction from the ₦52.26 billion recorded in 2024 represented notable progress, the financial losses remained substantial.
The CBN noted that the growing interconnectedness between banks, fintech firms and payment service providers through shared payment infrastructure has also heightened systemic risks, making the financial system more vulnerable to disruptions if a major participant experiences operational failures. The bank further warned that cyber threats continue to evolve in sophistication, requiring stronger cybersecurity frameworks, enhanced fraud monitoring mechanisms and improved collaboration among financial institutions to safeguard Nigeria's increasingly digital payment ecosystem. The latest financial disclosures therefore present a picture of rising operational costs for the apex bank, with spending on currency issuance almost doubling within a year.
📩 Stone Reporters News | 🌍 stonereportersnews.com
✉️ info@stonereportersnews.com | 📘 Facebook: Stone Reporters News | 🐦 X (Twitter): @StoneReportNew | 📸 Instagram: @stonereportersnews
Add comment
Comments