Central Bank of Nigeria Governor, Olayemi Cardoso, has said the seeming shortage of N100 and N200 notes is mainly due to the growing use of digital payment methods and the falling value of lower-denomination naira notes.
He also dismissed claims that the notes had been removed from circulation, stressing that they are still legal tender and should be accepted across the country.
Speaking on Tuesday after the Monetary Policy Committee meeting in Abuja, Cardoso said the CBN had not announced the withdrawal of any naira denomination.
“Yes, they remain legal tender. Unless the Central Bank states otherwise, Nigerians should assume that all existing denominations remain legal tender,” he said.
His comments followed complaints from many Nigerians who said it had become difficult to get N100 and N200 notes from banks, while some traders were reportedly refusing to accept them.
Cardoso said the lower circulation of the notes was the result of changing demand in the financial system, not any CBN plan to remove them.
He explained that wider financial inclusion and the fast growth of electronic payment platforms had reduced the need for cash, especially smaller 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.
Cardoso added that the naira’s depreciation had reduced the buying power of lower-value notes, making them less useful for daily 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, he said the CBN remained focused on restoring price stability and achieving single-digit inflation despite recent global economic disruptions.
“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 added that the apex bank would continue carrying out policies aimed at keeping prices stable and strengthening confidence in Nigeria’s financial system.
