The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has explained that the apparent scarcity of ₦100 and ₦200 notes is largely due to the growing adoption of digital payment channels and the declining purchasing power of the lower denominations, not because they have been withdrawn from circulation.
Speaking after the Monetary Policy Committee (MPC) meeting in Abuja on Tuesday, Cardoso assured Nigerians that both ₦100 and ₦200 notes remain legal tender and should continue to be accepted for transactions nationwide.
He stressed that the apex bank had not announced the withdrawal of any naira denomination, urging the public not to reject the lower-value notes.
According to him, the reduced circulation of the notes reflects changing demand patterns within the financial system as more Nigerians embrace electronic payment platforms.
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Cardoso also noted that inflation and the depreciation of the naira have significantly reduced the purchasing power of the smaller denominations, making them less useful for everyday transactions.
He explained that the expansion of financial inclusion and increased use of digital payment systems are gradually reducing dependence on physical cash, particularly lower-value notes.
Remark on Inflation
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 had recorded 11 consecutive months of declining inflation before external shocks slowed the progress toward the bank’s target.
Cardoso said the CBN remains focused on its long-term inflation objective and will continue implementing policies aimed at strengthening the economy.
Reacting to the International Monetary Fund’s assessment that the naira is undervalued, with an estimated fair value of about ₦1,150 to the US dollar, Cardoso maintained that the exchange rate should be determined by market forces rather than administrative controls.
He reiterated that the apex bank would continue to support a transparent, liquid and market-driven foreign exchange system based on a willing-buyer, willing-seller framework.
According to him, improved liquidity and growing investor confidence have strengthened Nigeria’s foreign exchange market, with daily turnover now exceeding $1 billion on some trading days.
