The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has assured Nigerians that the N100 and N200 notes remain legal tender despite their scarcity across the country.
Cardoso attributed the shortage of the lower-denomination notes to the increasing use of digital payment platforms and changes in the demand and supply of cash.
He made the clarification on Tuesday while speaking after the Monetary Policy Committee (MPC) meeting in Abuja.
The CBN governor stressed that the apex bank has not withdrawn any denomination from circulation and urged Nigerians to continue accepting the N100 and N200 notes.
According to him, “Yes, they remain legal tender. Unless the central bank states otherwise, Nigerians should assume that all existing denominations remain legal tender.
“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.
“As more people adopt digital payment channels, the demand for coins and lower-denomination notes naturally declines. If there is less demand for them, there is less need to print and circulate them in large quantities.”
Cardoso also said the reduced purchasing power of lower-value notes has contributed to their declining use.
He added, “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.”
CBN Still Targets Single-Digit Inflation
Speaking on inflation, Cardoso said the CBN remains committed to achieving single-digit inflation, although unexpected external shocks have slowed progress.
He said Nigeria was on track after recording 11 consecutive months of disinflation before the external challenges emerged.
According to him, “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.
“Unfortunately, we have experienced external shocks that were not anticipated and have lasted much longer than anyone expected.
“As for our single-digit inflation target, we remain committed to it.”
