Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has explained the reason behind the apparent scarcity of N100 and N200 notes.
Speaking on Tuesday after the Monetary Policy Committee (MPC) meeting in Abuja, Cardoso said the scarcity of the notes is the consequence of increasing adoption of digital payment channels and the declining purchasing power of the two lower-denomination currency.
Concerns that the affected notes had been withdrawn from circulation, was however dismissed by him, saying that they remain legal tender and should continue to be accepted for transactions across the country.
He stressed that the CBN had not announced the withdrawal of any naira denomination and urged Nigerians not to reject the lower-value notes.
“Yes, they remain legal tender. Unless the Central Bank states otherwise, Nigerians should assume that all existing denominations remain legal tender,” Cardoso said.
Speaking further: “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.
“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.”
