In 2024, the Central Bank of Nigeria (CBN) faced a staggering 305.7% increase in currency management costs, rising from N77.67 billion in 2023 to N315.18 billion. The surge was attributed to the mass printing of new notes and the destruction of old ones amid a nationwide cash shortage that crippled the economy. At the Group level, expenses skyrocketed from N1.11 billion to N238.65 billion, marking an unprecedented escalation due to logistical challenges and emergency interventions across the country.
Despite deploying several emergency strategies such as mandating ATM cash loads and setting up public hotlines, cash scarcity persisted throughout 2024. The CBN also took a tougher regulatory stance, penalizing Deposit Money Banks (DMBs) for distribution failures. Guaranty Trust Bank, Fidelity Bank, and Access Bank paid a combined N192.68 million in fines. In early 2025, nine more banks, including Zenith Bank and UBA, faced an additional N1.35 billion in penalties for failing to ensure cash availability during the 2024 holiday season.
Currency outside banks grew by 49.3% to N5.13 trillion in December 2024, showing that cash usage remained dominant despite the CBN’s push for digital transactions. Total currency in circulation hit N5.44 trillion, with 94.2% outside the banking system—underscoring the continued reliance on physical cash in rural and informal sectors. This trend highlights the challenges the CBN faces in transitioning the economy toward a cashless model.
Even as currency and liquidity management costs surged, with liquidity expenses tripling to N4.5 trillion, the CBN ended 2024 with a financial surplus, reversing its 2023 deficit. The bank credited improved external reserve management, increased remittances, and better portfolio inflows for the recovery. Despite losses from derivative settlements, the CBN maintained that its 2024 results reflected a broader reform effort aimed at restoring confidence and driving Nigeria’s economic stability.
Source: Nairametrics