The Central Bank of Nigeria has explained the current shortage of lower-denomination naira notes in circulation. According to the apex bank, the trend is linked to increased use of electronic payment channels and shifts in public demand for cash.CBN Governor, Olayemi Cardoso, made this known on Tuesday while briefing journalists after the Monetary Policy Committee meeting in Abuja.
He said the way Nigerians now use money has changed significantly in recent years.Cardoso noted that declining purchasing power has also affected how people handle small-value notes. With rising prices, he explained, citizens tend to hold less cash in N100 and N200 denominations, preferring digital transfers for everyday transactions.The governor added that the growing adoption of mobile banking, USSD, and other fintech services has reduced reliance on physical cash, especially for low-value payments.
This, he said, has naturally lowered the demand for smaller notes.He assured that the CBN is monitoring currency circulation patterns and will adjust its cash management strategy accordingly. The bank reiterated its commitment to ensuring that all denominations remain available to meet legitimate needs, while also promoting a cashless economy.
