Central Bank of Nigeria (CBN) Governor, Olayemi Cardoso, has explained that the current scarcity of N100 and N200 notes is primarily due to the rise of electronic payments and the diminishing value of smaller currency units. Following a Monetary Policy Committee (MPC) meeting in Abuja, Cardoso clarified that these banknotes remain legal tender and citizens should continue to accept them for all business activities.
Cardoso emphasized that the apex bank has not authorized the removal of any naira denominations from circulation. He stated that the perceived shortage is a natural consequence of market demand evolving alongside the country’s push for greater financial inclusion and digital transaction growth. Furthermore, he noted that the devaluation of the naira has lessened the practicality of smaller notes in daily commerce.
Addressing broader economic goals, Cardoso reaffirmed the central bank’s dedication to reaching single-digit inflation. Although external economic pressures have hindered recent progress after 11 months of falling inflation, the governor maintains that the bank is committed to its long-term stability objectives.
Regarding the International Monetary Fund’s recent valuation of the naira, Cardoso insisted that exchange rates should be set by market dynamics rather than government mandates. He highlighted that the current willing-buyer, willing-seller model has helped increase market liquidity, with daily foreign exchange turnover occasionally surpassing $1 billion.
