Nigeria's central bank says digital payments drive shortage of low‑value naira notes

Governor Olayemi Cardoso of the Central Bank of Nigeria told a press briefing after the 306th Monetary Policy Committee meeting in Abuja that the limited availability of N100 and N200 notes reflects market demand, not a withdrawal decision. He affirmed that the notes remain legal tender, saying “they are still legal tender…please assume they are legal tender,” and urged businesses and the public to continue accepting them.

Cardoso explained that the rapid shift toward electronic payment channels and the CBN’s Payments System Vision 2028, which aims to expand financial inclusion, are reducing the need for lower‑denomination cash. He added that inflation and the naira’s devaluation have weakened the purchasing power of these notes, further decreasing their circulation.