Cardoso Blames Declining Purchasing Power, Digital Payment Adoption for Scarcity of N100, N200 Notes

Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has attributed the persistent scarcity of N100 and N200 notes to declining purchasing power and the increasing adoption of digital payment channels across the country.

Cardoso made the explanation while addressing concerns over the limited circulation of lower-denomination naira notes, saying changing economic conditions and evolving payment habits have significantly influenced cash usage in Nigeria.

According to the CBN governor, inflation and reduced purchasing power have affected the demand for lower-value banknotes, as consumers increasingly require higher denominations for everyday transactions. He noted that the value of N100 and N200 has diminished over time, reducing their prominence in daily commercial activities.

Cardoso also said the rapid growth of electronic payment platforms has contributed to the reduced circulation of the notes. He explained that more Nigerians now rely on bank transfers, mobile banking applications, point-of-sale (PoS) terminals and other digital payment solutions instead of cash for routine transactions.

The CBN governor stressed that Nigeria has recorded significant progress in digital financial services, with electronic payments becoming more accessible and widely accepted across various sectors of the economy.

Despite the growing preference for cashless transactions, Cardoso assured Nigerians that the apex bank remains committed to ensuring an adequate supply of all denominations of the naira to meet public demand wherever necessary.

He added that the CBN continues to monitor currency circulation and distribution to address shortages and improve the availability of cash across the banking system.

The scarcity of lower-denomination notes has generated complaints from businesses, transport operators and consumers, many of whom depend on N100 and N200 notes for small-value transactions and as change during purchases.

Economic analysts say the reduced availability of the notes has forced many traders to round up prices or resort to digital transfers, sometimes creating inconvenience for customers without access to electronic payment platforms.

Cardoso reiterated that the CBN will continue to strengthen Nigeria’s payment system while ensuring that cash remains available for those who require it. He maintained that the central bank’s objective is to support a balanced financial system that accommodates both digital and cash-based transactions in line with the country’s evolving economic landscape.