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Where Does Nigeria Spend Its Money?


When she appeared before the Nigerian parliament, Aisha Ahmad, the Deputy Governor of the Central Bank of Nigeria (CBN), told the parliament that out of the nearly $1.8 billion used to manage the country’s funds, more than 90% of which this collection could have been used. expenses related to ticket production.

The Growing Cost of Keeping Nigeria Naira

According to Aisha Ahmad, the Deputy Governor of the Central Bank of Nigeria (CBN) between 2017 and 2021, the apex bank spent almost $1.8 billion, or N800 billion, to manage funds country. The production of new banknotes is just over 90% of this figure.

According to the words published by Punch, Ahmad, during his recent appearance before the Nigerian Parliament, also said that the amount used to save the country’s money has increased to more than $22 million annually. Before Ahmad’s disclosure, Kingsley Moghalu, a former deputy governor of the CBN, also told lawmakers that the central bank was using about $336 million to process funds.

In addition to incurring high costs related to the management of the naira, the CBN faces a serious risk of fraud, according to the report. Meanwhile, in his testimony, Ahmad alleged that the rising prices are what he said the Nigerian public is hoarding a lot of money.

“Statistical research shows that the lack of non-banking money represents more than 80% of the money in circulation; worsening the lack of undamaged money in circulation. This shows [a] negative public opinion about banks and increases the risk to the stability of the financial system,” Ahmad said.

To help the central bank overcome some of the challenges highlighted by Ahmad, the CBN released a new naira note set to be circulated on December 2. 15. Meanwhile, the bank said Nigerians with old documents should return them on or before January 1. 1, 2023.

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CBN Does Not Chase Politicians

The central bank has limited the amount that individuals and businesses can withdraw. But some commentators in Nigeria have accused the CBN of using the Naira Recast Policy to target politicians. In response to the allegations, Ahmad reportedly told lawmakers that the bank’s decision had resulted in a ban on withdrawing funds from investigations.

“I must say clearly that the CBN is an independent institution and our decisions are based on research – it is the work of many members working together across different registers,” said Ahmad.

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