CBN Governor Finally Reveals Why ₦100 And ₦200 Notes Have Disappeared

The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has assured Nigerians that the ₦100 and ₦200 banknotes remain legal tender, dismissing concerns that the denominations have been withdrawn from circulation.

Cardoso, however, attributed the apparent scarcity of the lower-value notes to the increasing use of digital payment platforms and changes in public demand for cash.

Speaking on Tuesday after the Monetary Policy Committee (MPC) meeting in Abuja, the CBN governor stressed that the apex bank had not discontinued any denomination and urged Nigerians to continue accepting the ₦100 and ₦200 notes for transactions.

“Yes, they remain legal tender. Unless the Central Bank announces otherwise, Nigerians should regard all existing denominations as valid for use,” he said.

Explaining the reduced circulation of the notes, Cardoso said the shift towards digital transactions and broader financial inclusion had naturally lowered the demand for smaller denominations.

“The situation is largely driven by demand and supply. Our financial ecosystem is evolving in the direction we want, with greater financial inclusion and increased digitisation. As more people embrace electronic payment channels, the demand for coins and lower-denomination notes declines, reducing the need to print and circulate them in large volumes,” he explained.

The CBN governor also noted that inflation and the declining purchasing power of lower-value notes have contributed to their reduced usage.

“We also have to acknowledge that currency depreciation has affected the purchasing power of these lower denominations. But more importantly, as digital payments become part of everyday life and financial inclusion continues to expand, fewer people will depend on them,” he added.

CBN Still Targeting Single-Digit Inflation

Cardoso also reaffirmed the Central Bank’s commitment to bringing inflation down to single digits despite recent global economic shocks that have slowed the pace of disinflation.

He noted that Nigeria had recorded 11 consecutive months of declining inflation before external developments disrupted the expected trend.

“It is important to remember where we started from. We achieved 11 straight months of disinflation, and based on our projections, we expected to be on course for single-digit inflation by early 2027,” he said.

According to him, unforeseen external shocks lasting longer than anticipated have delayed that progress, but the apex bank remains focused on achieving its inflation target.

“Those external challenges were not anticipated and have persisted longer than expected. Nevertheless, our commitment to achieving single-digit inflation remains unchanged,” Cardoso stated.