CBN Headquarters Abuja
Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, on Tuesday clarified that the ₦100 and ₦200 notes remain legal tender and have not been withdrawn from circulation.
Speaking after the Monetary Policy Committee (MPC) meeting in Abuja, Cardoso said the apparent scarcity of lower-denomination notes was largely due to changing payment habits and reduced demand as more Nigerians embrace digital transactions.
He stressed that all existing denominations remain valid unless the apex bank officially announces otherwise.
“Unless the central bank says otherwise, all existing denominations remain legal tender. We have not withdrawn any note,” Cardoso said.
According to him, the increasing adoption of digital payment channels and broader financial inclusion have naturally reduced demand for coins and lower-value notes, leading to lower levels of printing and circulation.
He added that the depreciation of the naira has also diminished the purchasing power of smaller denominations, further reducing their usage.
“The world is moving in a particular direction, and we will not be left behind,” he said, referring to the global shift towards digital payments.
On inflation, the CBN governor reaffirmed the bank’s commitment to achieving single-digit inflation by 2027, noting that Nigeria had recorded 11 consecutive months of disinflation before external shocks slowed the pace of improvement.
Latest data showed headline inflation eased marginally to 15.91 per cent in June from 15.93 per cent in May, ending three consecutive months of increases. Core inflation also declined to 15.92 per cent from 16.82 per cent, supported by relative stability in the foreign exchange market.
However, food inflation rose to 17.52 per cent in June from 16.96 per cent in May, driven by supply constraints and increased transportation costs.
Cardoso said the moderation in headline and core inflation suggested that the apex bank’s monetary tightening measures were beginning to yield results.
He also highlighted the positive impact of ongoing banking sector recapitalisation, noting that the process has been largely funded by domestic investors and has strengthened the resilience of the financial system.
The MPC, however, warned that global economic growth remains fragile, with inflation risks still skewed to the upside due to commodity price pressures, supply chain disruptions and climate-related challenges.
Cardoso further welcomed the CBN’s recognition as the Central Bank of the Year for 2026, describing the award as a testament to the efforts of the bank’s staff and management in implementing reforms aimed at restoring macroeconomic stability and transparency.
“We are not an island. All the very difficult and painful reforms we have made have been tracked. They can see that those reforms have taken us on a journey that is paying off for Nigeria,” he said.
