Foreign security printing firms handled 65 percent of Nigeria’s approved banknote production programme in 2025, despite the existence of the government-owned Nigerian Security Printing and Minting Plc (NSPM), the Central Bank of Nigeria (CBN) has disclosed. The disclosure was contained in the apex bank’s latest Annual Report, which showed that the CBN approved the production of 5.71 billion pieces of legal tender across various denominations during the year.

The volume represented a 20.5 percent increase from the 4.74 billion banknotes approved for production in 2024, reflecting sustained demand for cash in the economy. Of the total approved production programme, NSPM was allocated two billion banknotes, representing 35 percent, while overseas high-security printers received the remaining 65 percent. The figures highlight Nigeria’s continued reliance on foreign contractors for the production of a strategic national asset, notwithstanding the country’s domestic capacity through NSPM.

The CBN report further showed that NSPM had delivered 1.24 billion banknotes, equivalent to 62 percent of its allocation, as of December 31, 2025. This left 760.76 million pieces outstanding from its approved allocation at the end of the year. Foreign printers, meanwhile, completed deliveries for the ₦1,000, ₦500 and ₦200 denominations. However, deliveries under a supplementary contract for an additional 1.5 billion banknotes awarded in November 2025 were still ongoing at year-end. The CBN did not disclose why foreign printers were allocated almost twice the volume assigned to the local mint.

It was also unclear whether the decision was influenced by production capacity, technology, cost considerations or delivery timelines. The development could renew concerns over Nigeria’s local content drive, particularly the capacity of domestic institutions to meet the country’s strategic printing and security-document requirements.

The increase in banknote production occurred against the backdrop of rising currency demand.

The CBN said currency in circulation increased to ₦5.73 trillion in 2025 from ₦5.44 trillion in 2024. The apex bank attributed the continued expansion of currency management operations to increased economic activity and demand for cash. Beyond printing additional banknotes, the CBN said it strengthened cash management through nationwide public sensitisation campaigns on the proper handling of the naira.

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It also conducted periodic mystery shopping exercises to monitor banks’ compliance with currency management guidelines and enhanced collaboration with industry stakeholders to improve cash processing and cash-in-transit operations.

The bank further expanded its currency processing infrastructure and approved the disposal of demonetised coins as part of measures to improve operational efficiency.

The latest figures are expected to intensify calls for greater investment in NSPM’s production capacity, technology and infrastructure to enable it to take a larger share of future banknote production. Greater reliance on domestic production could also support Nigeria’s import-substitution objectives and potentially reduce foreign exchange expenditure associated with outsourcing the printing of currency abroad.