The Central Bank of Nigeria (CBN) has confirmed that lower denomination naira notes remain legal tender, but the scarcity of such notes is primarily due to shifting consumer preferences and the increasing reliance on digital payment methods. Governor Olayemi Cardoso made this clarification during the press briefing following the 306th Monetary Policy Committee (MPC) meeting in Abuja on Tuesday. He emphasized that the reduced availability of smaller denomination currencies reflects a broader trend toward financial inclusion and digitization, rather than a deliberate withdrawal by the central bank. Cardoso addressed concerns raised by citizens and businesses regarding the limited circulation of lower value notes and coins. He reiterated that while the CBN has not issued any directive to remove these denominations from circulation, their usage has decreased because of changing payment habits. “To the extent that the Central Bank has not said otherwise, please assume they are legal tender,” he said. This statement came in response to questions about the validity of the 100 naira notes, which the CBN reaffirmed as legal tender on 8 July. The governor highlighted that the financial system is undergoing a transformation, with more Nigerians adopting electronic payment platforms and mobile money solutions. This shift, he argued, reduces the necessity for physical cash, especially in everyday transactions. “The question as to why we do not have as many of them in circulation as may be perceived is a question of demand and supply, quite frankly,” Cardoso said. He pointed out that the Payments System Vision (PSV 2028), launched recently by the CBN, aims to accelerate financial inclusion through digital infrastructure and improved access to banking services. Cardoso also acknowledged that the depreciation of the naira has diminished the purchasing power of lower denomination notes. However, he maintained that the global movement toward digitization is irreversible. “The world is moving in a particular direction, and we won’t be left out,” he said. He cited examples of Nigerian citizens using local currency cards for international transactions, including pilgrimages to Mecca, as evidence of the growing integration of digital systems. In addition to addressing the issue of currency denominations, Cardoso outlined other key developments from the MPC meeting. Nigeria’s gross external reserves have risen to $52.52 billion, offering import cover for approximately 11 months. This represents an increase from $50.47 billion recorded at the end of May 2026. The boost in reserves is attributed to tax revenues from the oil sector and foreign capital inflows. The CBN governor noted that while the oil sector’s GDP growth slowed to 2.57% in Q1 2026, recent indicators suggest a recovery, with the composite Purchasing Managers’ Index (PMI) rising to 50.1 in June. The CBN has also maintained the benchmark interest rate at 26.5%, marking the second consecutive time the rate has been retained. This decision was influenced by the ongoing geopolitical tensions in the Middle East, which have led to fluctuations in global oil prices and, consequently, inflation in Nigeria. Despite these challenges, the central bank expressed confidence in achieving its inflation target of single-digit levels by early 2027. Cardoso underscored the importance of coordinated efforts between fiscal and monetary authorities to manage inflationary pressures. “Collaboration between the fiscal and the monetary authorities at a time like this cannot be overemphasized,” he said. The CBN continues to implement measures designed to stabilize the economy and enhance financial resilience, even amid global uncertainties.
5 reports
Premium Times NigeriaIndependentCenter3 hr. agoGovernor of the Central Bank of Nigeria, Olayemi Cardoso, explained that the scarcity of lower naira denominations is due to decreasing public demand, not the central bank's withdrawal of such notes from circulation. During a press briefing after the 306th Monetary Policy Committee meeting, he emphasized that the shift towards digital payments and financial inclusion is driving this trend. He reiterated that lower denominations remain legal tender and highlighted the CBN's Payments System Vision 2028, which aims to boost financial inclusion through increased digitization. Cardoso acknowledged the impact of naira depreciation on purchasing power but argued that global trends favor digital transactions over cash.
Bias read (Center): The article presents the CBN governor's explanation regarding the decline in lower denomination notes without overtly criticizing or praising the policy. It reports on the central bank's stance and acknowledges both economic factors (currency depreciation) and technological shifts (digital payments)
Premium Times NigeriaIndependentCenter5 hr. ago Nigeria’s external reserves rise to $52.5 billion, enough for 11 months’ importsNigeria's gross external reserves increased to $52.52 billion as of July 17, 2026, providing import cover for approximately 11 months of goods and services, according to the Central Bank of Nigeria (CBN). This marks an increase from $50.47 billion at the end of May 2026, driven primarily by receipts from crude-oil-related taxes and third-party inflows. CBN Governor Olayemi Cardoso highlighted that while the oil sector's GDP growth slowed to 2.57% in Q1 2026, recent data showed improved economic activity, with the composite PMI rising to 50.1 in June 2026. The CBN maintained the interest rate at 26.5% amid ongoing geopolitical tensions in the Middle East. The improved reserves bolster Nigeria's external position and provide a buffer against global uncertainties.
Bias read (Center): The article presents factual updates on Nigeria's external reserves and economic indicators without overtly favoring any political ideology. It reports on the CBN's decisions and economic performance based on official data, maintaining a balanced tone. While the subject matter relates to economic政策,
Premium Times NigeriaIndependentCenter5 hr. ago CBN targets single-digit inflation by 2027 despite global shocksThe Central Bank of Nigeria (CBN), led by Governor Olayemi Cardoso, expressed confidence in achieving single-digit inflation by early 2027 despite global challenges such as the resurgence of hostilities in the Middle East. The CBN maintained its interest rate at 26.5% for the second time this year, attributing the decision to the impact of global oil price surges caused by regional conflicts. According to the National Bureau of Statistics, Nigeria's headline inflation rate decreased slightly to 15.91% in June, down from 15.93% in May. While there was a downward trend in inflation throughout 2025 and early 2026, the situation worsened after the February oil price spike due to Middle Eastern tensions. Cardoso acknowledged that unexpected external shocks have delayed progress but emphasized ongoing efforts to tighten monetary policy and enhance coordination with fiscal authorities to meet the inflation target.
Bias read (Center): The article presents a balanced view of the CBN's stance on inflation control, highlighting both the challenges posed by global events and the effectiveness of current monetary policies. It does not overtly favor any particular political ideology or agenda, focusing instead on economic data and theC
Premium Times NigeriaIndependentCenter9 hr. ago BREAKING: CBN retains interest rate at 26.5%The Central Bank of Nigeria (CBN) has decided to keep the benchmark interest rate at 26.5% during its latest Monetary Policy Committee (MPC) meeting. This follows a previous rate cut in February and comes amid ongoing inflationary pressures influenced by geopolitical tensions in the Middle East. CBN Governor Olayemi Cardoso explained that the decision was made after evaluating economic conditions, noting that while inflation slightly decreased in June, it remains elevated due to renewed conflicts in the region. The MPC also adjusted the asymmetric facilities corridor around the MPR to encourage more lending activity among banks. Inflation rates have fluctuated recently, with a slight decline in June but overall remaining high compared to earlier months.
Bias read (Center): The article presents the central bank's monetary policy decisions in a neutral manner, focusing on the economic factors influencing the decision rather than taking a clear ideological stance. It includes quotes from the CBN governor and references statistical data without apparent bias toward any政治派
Vanguard NigeriaIndependentCenter9 hr. agoThe Central Bank of Nigeria (CBN) has decided to keep the Monetary Policy Rate (MPR) at 26.5% for the second consecutive time. This decision was made by the Monetary Policy Committee (MPC) during their 306th meeting, with CBN Governor Olayemi Cardoso announcing the outcome at the MPC briefing. The announcement indicates continuity in the central bank’s monetary policy approach.
Bias read (Center): The article presents a factual update on a monetary policy decision without overtly favoring any political stance. It focuses on the technical aspect of interest rates and does not include commentary or emphasis that would suggest a particular ideological leaning.
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