The Central Bank of Nigeria (CBN) Governor, Olayemi Cardoso, has attributed the apparent scarcity of N100 and N200 banknotes to the growing adoption of digital payment channels and the declining purchasing power of lower-denomination naira notes.
Cardoso clarified on Tuesday in Abuja while speaking to journalists after the 306th meeting of the Monetary Policy Committee (MPC), stressing that the affected denominations remain legal tender and have not been withdrawn from circulation.
He urged Nigerians to continue accepting the notes, saying the CBN had not announced the withdrawal of any naira denomination.
According to the governor, the reduced circulation of lower-value notes is largely a result of changing demand and supply patterns within Nigeria’s evolving financial ecosystem.
He said the expansion of financial inclusion and increased reliance on electronic payment platforms had reduced the demand for physical cash, particularly lower denominations.
Cardoso explained that as more Nigerians embrace digital transactions, the need for coins and smaller-value banknotes naturally declines, reducing the incentive to print and circulate them in large quantities.
He also pointed to the impact of naira depreciation, noting that the decline in the purchasing power of lower denominations had further reduced their usefulness in everyday transactions.
The CBN governor said the trend was consistent with the apex bank’s drive to deepen financial inclusion and promote a more digitised payments ecosystem.
He added that the recently unveiled Payments System Vision 2028 would further support the expansion of digital financial services, potentially leading to declining demand for lower-value cash denominations.
Cardoso’s comments come amid concerns among Nigerians over the availability of N100 and N200 notes, with some members of the public speculating that the denominations may have been phased out.
The governor, however, reiterated that all existing naira denominations should be regarded as legal tender unless the CBN officially states otherwise.
