The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has attributed the ongoing scarcity of lower-denomination bank notes, particularly the ₦100 and ₦200 bills, to the growing adoption of electronic payment channels alongside the declining purchasing power of the currency.

Speaking following a Monetary Policy Committee (MPC) meeting in Abuja, Cardoso dismissed widespread public speculation that the affected banknotes had been quietly withdrawn from circulation, reiterating that all existing denominations remain valid legal tender and should continue to be accepted for commercial transactions nationwide.

The apex bank chief clarified that the reduced presence of small-denomination notes in circulation is driven primarily by natural market dynamics of demand and supply within an evolving financial ecosystem.

He explained that as financial inclusion expands and more citizens shift toward digital payment platforms, the demand for physical coins and lower-value cash naturally diminishes, thereby reducing the necessity for the central bank to print and issue them in large volumes.

Furthermore, Cardoso acknowledged that ongoing currency devaluation has eroded the real purchasing power of smaller bills, rendering them less practical for daily retail transactions.

Addressing broader economic issues, Cardoso affirmed the Central Bank’s determination to steer inflation back to single-digit targets despite unexpected external shocks that have extended the disinflation timeline beyond original forecasts. He also touched upon foreign exchange stability, responding to recent assessments by the International Monetary Fund (IMF) that the naira remains undervalued. Cardoso stated that the exchange rate must continue to be determined by market fundamentals under a transparent, liquid, and willing-buyer, willing-seller framework driven by domestic productivity, oil exports, and foreign direct investment, adding that daily market turnover has occasionally exceeded $1 billion as investor confidence rebounds.