The Governor of the Central Bank of Nigeria, Olayemi Cardoso, has attributed the apparent scarcity of N100 and N200 notes to the growing adoption of digital payment channels and the declining purchasing power of lower-denomination naira notes.
Cardoso, however, dismissed speculation that the notes had been withdrawn from circulation, insisting they remain legal tender and should continue to be accepted for transactions nationwide.
Speaking on Tuesday after the Monetary Policy Committee meeting in Abuja, the CBN governor said the apex bank had not announced the withdrawal of any denomination of the naira.
“Yes, they remain legal tender. Unless the Central Bank states otherwise, Nigerians should assume that all existing denominations remain legal tender,” he said.
The clarification comes amid complaints from Nigerians over the difficulty of accessing N100 and N200 notes at banks and in commercial transactions, with some traders reportedly rejecting the denominations.
Cardoso explained that the reduced circulation of the notes was driven by changing demand within the financial system rather than a deliberate policy by the CBN to phase them out.
According to him, increased financial inclusion and the rapid adoption of electronic payment platforms have significantly reduced dependence on physical cash, particularly lower denominations.
“As to why there appear to be fewer of these notes in circulation, it is largely a matter of demand and supply. The financial ecosystem is evolving in the direction we want it to, with greater financial inclusion and increased digitisation,” he said.
He added that the depreciation of the naira had further weakened the purchasing power of the smaller denominations, making them less relevant in everyday transactions.
“Of course, we must also acknowledge that currency devaluation has affected the purchasing power of lower-value notes. That is a reality.
“More importantly, however, as financial inclusion expands and digital payments become part of everyday life, fewer people will rely on these denominations,” Cardoso stated.
On inflation, the CBN governor reaffirmed the bank’s commitment to restoring price stability and achieving single-digit inflation despite recent global economic disruptions.
He recalled that Nigeria recorded 11 consecutive months of declining inflation before external economic shocks interrupted the downward trend.
“It is important to remember where we are coming from. We recorded 11 consecutive months of disinflation and, from every indication, we expected that by early 2027 we would be where we wanted to be in terms of inflation, with a path towards single-digit inflation,” he said.
Cardoso maintained that the apex bank would continue implementing policies aimed at stabilising prices while strengthening confidence in the country’s financial system.
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