Report: Nigerian Central Bank Spent Over $1.8 Billion Managing Local Currency

[CryptopreneurBrainboss]

During her appearance before Nigerian lawmakers, Aisha Ahmad, the deputy governor of the Central Bank of Nigeria (CBN), told lawmakers that out of the nearly $1.8 billion used to manage the local currency, over 90% of this total was reportedly used to fund expenses associated with the production of banknotes.

The Growing Cost of Maintaining the Naira
According to Aisha Ahmad, the deputy governor of the Central Bank of Nigeria (CBN), between the years 2017 and 2021, the apex bank spent an equivalent of nearly $1.8 billion, or 800 billion naira, managing the local currency. The production of new banknotes alone accounted for more than 90% of this figure.

As per remarks published by the Punch, Ahmad, in her recent appearance before Nigerian lawmakers, also claimed that the cost of maintaining the local currency has been increasing by over $22 million annually. Before Ahmad’s disclosure, Kingsley Moghalu, a former CBN deputy governor, had also told lawmakers that the central bank uses approximately $336 million to manage the currency.

In addition to incurring high costs associated with managing the naira currency, the CBN has to contend with the increased risk of counterfeiting, the report said. Meanwhile, in her testimony, Ahmad partly blamed the spiraling costs on what she characterized as wholesale hoarding of the naira by the Nigerian public.

“An observation supported by statistics shows that cash outside banks consists of over 80 per cent of the currency in circulation; worsening [the] shortage of fit banknotes in circulation. This portends [a] negative public perception of the bank and increases [the] threat to financial system stability,” Ahmad is quoted as saying.

To help the central bank overcome some of the challenges identified by Ahmad, the CBN introduced into circulation newly designed naira banknotes on Dec. 15. At the same time, the bank said Nigerian residents in possession of the old banknotes should return these before or by Jan. 1, 2023.
Source: https://news.bitcoin.com/report-nigerian-central-bank-spent-over-1-8-billion-managing-local-currency/

As I dey read this news wetin dey flow through my head is how true are this figures. We know say our government too dey increase the figure of any money wey dem spend so them fit get their own cut use hold  body but if the figures are anywhere near the truth, do you think we are spending too much on maintenance and how do we cut down this expenses.

[Zaguru12]

First of all he dey hard to trust figures from this people but regardless the expenses to maintain paper money they very expensive because even USA Don complain about this thing. Watin she also talk about hoarding affecting it is true but my issue with them was una know say people gather this money for house and una still bin dey print more instead of finding solution to the problem then.

On how to reduce the cost of maintaining the naira I think the solution should would be the printing of limited notes that's y I support there recent withdrawal limits. The best solution would have been an electronic currency and instead of government to think of how to bring bitcoin to work hand in hand with naira dem go create E-naira. The CBDC no bad but irregularities go still they the thing. So the best option right now na make them print less new notes and make he no dey outside bank plenty

[BIT-BENDER]

Senior man there is no truth in those figures all of them are hyped just so they can fill their pockets, one of Nigeria most corrupt system is it’s finance sector and the chief source is the central bank of Nigeria.

A lot of unaccounted spendings, budget, diverted funds and theft. So I am not surprised at this article. How them go spend so much to manage the currency but still the currency it’s self the lose value sharply.

[Mr.right85]

Senior man there is no truth in those figures all of them are hyped just so they can fill their pockets, one of Nigeria most corrupt system is it’s finance sector and the chief source is the central bank of Nigeria.

Lol,,, abeg leave me o. No b today we sabi say, dis we naija leaders don sawa finish.

First first, dem invite persn to com talk hw mata b 4 en hauz nd hw e tak dey manage tins, dey brng up outrageous policies, e no gree com out. Dem drop am anoda invite, e stil no com. On a 3rd one, e send representativ as e no dey disposed. Why e no send representative since? Abi mak we say e bin dey prepare watin 2 talk abi...

Imagine moni way dem dey call name, #800 billion for maintenance! These Same people way be say, na for 2022 you fit manage see mint of previous year or the year before ram.
Dem go jst hold am so, boys go com buy frm dem 2 use spray for occasion. Den, dem go talk say, Nigerians dey hold moni. Somtin way dem don turn to hustle!

Govmnts nd banks shah. Where e dey so painful na say, we knw Al dis tins nd we stil dey helpless at am. We no jst ft do enouf 2 change d mata. E cast!

[Pokapoka124]

This figures nor too big for my eye o belike you nor Dey watch NTA news for evening. This night just tune in around 10pm..Dey read the stories wey them Dey write under with small font you dey see trillion trillion, out of 100 70 na money wey government don go borrow or won borrow, 20% na money wey one politician go tok say e spend for one project for e state, 10% na for insecurity money to fight boko haram, herdsmen and unknown gunmen. As we dey tok naija na full cruise

[Agbe]

I saw di flash news on social media but I no reason am go any where. Naija Apex bank sef, me I no know whether dem dey tok true, wen dem tok some kind money wey dem sae dem use to do something I dey wonder how. If I see di amount wey dem sae dem use destroyed di spoiled money u go cry. Di money wey dem used come plenty pass di spoiled demselves. Di $1.8 billion na very big money,  na dollar we dey tok 4 here oo. Dat money go reach ₦806,544,000,000.00, datngo be eight hundred six billion five hundred forty-four million naira. And day money dem used am 2 maintain di national currency. Dat is unbelievable. Pokapoka124 said na so di tin be. Wen u turn 2 NTA by 7 pm or 9 pm u go confirm di odudu. If u look well Buhari put Muslims or Fulani pple for all di high strategic positions in di country so dat dem go siphon di national money together. Look at d minister of Disaster and Humans Development affair. Then look at ministry of internal affairs. These are areas of no go areas for other tribes.

[Igebotz]

As I dey read this news wetin dey flow through my head is how true are this figures. We know say our government too dey increase the figure of any money wey dem spend so them fit get their own cut use hold  body but if the figures are anywhere near the truth, do you think we are spending too much on maintenance and how do we cut down this expenses.

The cost of producing local currency is determined by a number of factors, including the materials used in its manufacture, the design and security features included on the currency, and the quantity of currency produced. that was one of the reasons for they redesigning of the naira to reduce some of the color and features, the naira note was becoming very expensive to produce.

In general, the cost of producing currency rises as the amount of currency produced falls. This is because producing small quantities of currency is generally more expensive due to the fixed costs associated with producing currency, such as the cost of designing and printing the currency, as well as the cost of incorporating security features.

[KupaCrypto]

Na wa o, for this country so them they spend money to manage money, the money too much naa, 1.8 billions no be small money oo, ok make we reason am how them manage the money? , Which equipments them buy to manage the money, abi money wey done enter my hand them go come manage am for me, them just they raise the figure, if any need of managing our currency they, then the money no go reach that 1.8billion.
Them just want us this medium thief money na wa ooooo

[Dzwaafu11]

Op these matter wey u talk now they my mind, if no be naija how una go take talk say these huge amount of money  una use to take care of other money all  this things na lie... How we go take trust them 1.8 billion they use full there pocket that's the fact beside they fit increase the money wey spent so that if they give them they remove some amounts for there self