Currency Abuse Costs Nigeria Billions, Cardoso Warns

Governor of the Central Bank of Nigeria (CBN) Olayemi Cardoso, has warned that the persistent abuse, mutilation and improper handling of the naira are imposing significant and avoidable costs on the Nigerian economy.

Cardoso spoke on Tuesday in Abuja during the inauguration of the CBN’s Naira Ambassadors Club, a new initiative designed to promote respect for the national currency and encourage responsible handling of banknotes.

According to the CBN governor, the apex bank invests substantial resources in producing clean, durable and secure banknotes, but those efforts are undermined when members of the public mishandle the currency.

“When banknotes are defaced, mutilated or improperly handled, they deteriorate much faster than expected. This increases replacement costs, disrupts the efficiency of currency circulation and imposes avoidable financial burdens on the nation,” he said.

“The preservation of our currency is therefore not merely an operational concern for the Central Bank; it is a matter of national responsibility.”

Cardoso described the naira as more than a medium of exchange, noting that it remains a symbol of Nigeria’s sovereignty, identity and economic stability.

He said every banknote reflects the nation’s history through the images of distinguished Nigerians, national symbols and security features embedded in the currency.

The CBN governor inaugurated 175 students drawn from seven schools as pioneer members of the Naira Ambassadors Club.

He explained that the initiative aims to instill a culture of respect for the naira among young Nigerians and empower them to drive behavioural change within their schools, families and communities.

“The Naira Ambassadors Club is founded on the conviction that lasting social transformation is most effective when driven through education,” Cardoso said.

“Through this platform, we seek to nurture a generation of young Nigerians who understand not only the value of money but also the responsibility that comes with preserving a national currency.”

He urged the students to educate their peers on the dangers of writing on, stapling, mutilating or spraying banknotes during social events.

“As Naira Ambassadors, you are expected to become advocates of proper currency handling. You will encourage responsible currency handling in your homes and communities,” he added.

Cardoso linked the initiative to broader efforts aimed at strengthening confidence in the Nigerian currency and promoting civic responsibility.

He also referenced the recent recognition of the Central Bank of Nigeria as the Central Bank of the Year 2025, describing the award as evidence of progress achieved through reforms and institutional strengthening.

The CBN governor challenged participating schools to become centres of excellence in promoting respect for the naira and responsible citizenship.

He stressed that safeguarding the national currency is not only about protecting banknotes but also about preserving national identity, reducing wasteful expenditure and strengthening public trust in Nigeria’s financial system.

According to him, the Naira Ambassadors Club forms part of the CBN’s wider strategy to promote public awareness, stakeholder engagement and financial education across the country.