The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has assured Nigerians that the ₦100 and ₦200 banknotes remain valid legal tender despite their reduced circulation across the country. Nigerian Investment Opportunities
According to Ireporter Online, Cardoso attributed the scarcity of the lower-denomination notes to the increasing adoption of digital payment platforms, changing consumer spending habits, and the dynamics of currency demand and supply rather than any decision by the apex bank to withdraw them.
Speaking after the Monetary Policy Committee (MPC) meeting in Abuja on Tuesday, the CBN governor stressed that no denomination of the naira had been removed from circulation and advised Nigerians to continue accepting the ₦100 and ₦200 notes for transactions.
He explained that all existing naira denominations remain legal tender unless the Central Bank officially announces otherwise, adding that the reduced presence of the smaller notes is largely due to declining demand.
Cardoso noted that Nigeria’s financial system is rapidly evolving with greater financial inclusion and increased reliance on electronic payment channels. As more people embrace cashless transactions, he said the demand for lower-value notes naturally decreases, reducing the need for the CBN to print and distribute them in large volumes.
He also acknowledged that inflation and the declining purchasing power of the naira have contributed to the reduced use of ₦100 and ₦200 notes, making them less practical for everyday transactions.
On inflation, the CBN governor reaffirmed the bank’s commitment to achieving single-digit inflation, despite recent global economic shocks that have slowed progress.
Cardoso recalled that Nigeria had recorded 11 consecutive months of disinflation and expressed optimism that, barring prolonged external disruptions, the country remains on course to achieve single-digit inflation by 2027.
He maintained that although unexpected global challenges have delayed the pace of improvement, the apex bank remains focused on restoring price stability and achieving its long-term inflation target.
Ireporter Online