Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has attributed the apparent scarcity of ₦100 and ₦200 notes across the country to the increasing adoption of digital payment channels and the declining purchasing power of the lower-denomination currencies.
Cardoso made the remarks while addressing concerns over the reduced circulation of the two denominations, explaining that changing payment habits and prevailing economic realities have significantly altered the demand for physical cash.
According to the CBN governor, the rapid growth of electronic payment platforms has reduced the need for Nigerians to rely heavily on cash for everyday transactions.
He noted that more individuals and businesses now prefer digital payment options, including bank transfers, mobile banking applications, point-of-sale (PoS) terminals and other electronic channels, resulting in lower demand for certain denominations.
Cardoso also pointed to inflation and the declining purchasing power of the naira as major factors affecting the circulation of ₦100 and ₦200 notes.
He explained that the value of the lower denominations has diminished over time, making them less useful for many commercial transactions as the prices of goods and services continue to rise.
According to him, Nigerians increasingly opt for higher-denomination notes when making cash payments, further reducing the circulation of ₦100 and ₦200 notes in the economy.
The CBN governor stressed that the situation does not indicate a shortage in currency production or supply by the apex bank.
Rather, he said it reflects evolving consumer behaviour and the broader shift towards a more digitally driven payment ecosystem.
Cardoso reaffirmed the Central Bank’s commitment to ensuring adequate currency circulation across the country while continuing to promote financial inclusion through secure and efficient digital payment systems.
He noted that the apex bank remains focused on strengthening Nigeria’s payment infrastructure to support faster, safer and more convenient financial transactions for individuals and businesses.
The CBN has in recent years intensified efforts to promote a cashless economy through policies aimed at expanding electronic payments, reducing cash-handling costs and improving access to digital financial services.
These initiatives have contributed to significant growth in mobile banking, instant payments and other electronic transaction platforms, with millions of Nigerians increasingly embracing cashless payment options.
Despite the expansion of digital transactions, many Nigerians have continued to express concerns over the availability of lower-denomination notes, particularly for small-scale businesses, public transportation and informal market transactions where cash remains widely used.
Economic analysts say inflation has further eroded the value of lower denominations, making them less practical for many purchases and accelerating the public’s preference for larger notes and electronic payments.
They also note that while digital banking continues to gain acceptance, ensuring consistent access to cash remains important for rural communities and segments of the population with limited access to digital financial services.
Cardoso reiterated that the Central Bank would continue to monitor currency circulation patterns and adapt its policies to meet the changing needs of the economy while maintaining confidence in Nigeria’s financial system.
He added that the apex bank remains committed to striking a balance between supporting the country’s transition to a digital economy and ensuring that cash remains readily available for citizens who still depend on physical currency for daily transactions.
