The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has reiterated that the ₦100 and ₦200 notes remain legal tenders in Nigeria.
He, however, blamed the scarcity of the lower-denomination notes on the growing adoption of digital payments and changing currency demand and supply factors.
Cardoso made the submission on Tuesday while speaking after the Monetary Policy Committee (MPC) meeting in Abuja.
He stressed that the CBN has not withdrawn any denomination from circulation, and urged Nigerians to continue to accept the ₦100 and ₦200 notes.
“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 said.
He also said the declining purchasing power of lower-value notes has contributed to their reduced use.
“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,” he said.
