The Central Bank of Nigeria (CBN) has renewed warnings against mutilation, defacing, and improper handling of naira notes, stressing that maintaining currency quality is critical for economic efficiency. Officials highlighted the issue during the Kaduna International Trade Fair, citing operational disruptions caused by unfit currency.
Damaged notes increase sorting and transaction costs for banks and market operators. SMEs and retailers often face rejected deposits or additional manual verification, which disrupts daily trade activities. The CBN’s renewed focus reflects an effort to strengthen cash circulation practices and maintain trust in the financial system.
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Impact on businesses and trade operations
Market operators indicated that mutilated notes complicate transactions and may result in temporary losses for businesses. Retailers in urban and semi-urban markets frequently encounter challenges when customers tender damaged currency. The CBN encouraged merchants and businesses to adopt responsible cash handling practices and return defaced notes to official banking channels.
Analysts note that improving note quality indirectly supports better monetary policy transmission and reduces inefficiencies in cash-dependent sectors.
Public awareness and enforcement
The apex bank has indicated plans to expand public education campaigns in markets, schools, and commercial hubs. Enforcement of existing currency regulations may also be strengthened to prevent the circulation of unfit notes.
Officials emphasised that currency integrity is an ongoing responsibility shared between banks, businesses, and the public. Effective awareness campaigns are expected to reduce incidents of mutilation over time.
Alignment with broader reforms
Maintaining high-quality currency circulation complements broader financial sector reforms. Economists argue that even minor operational issues, such as handling unfit notes, influence market confidence and public perception of economic stability.
Sustained currency discipline will contribute to smoother transactions, better monetary policy implementation, and overall market confidence.
