The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has clarified that lower naira denominations, including the ₦5, ₦10, ₦20, ₦50 and ₦100 notes, remain legal tender across the country.

Cardoso made the clarification while responding to questions during a press briefing after the 306th Monetary Policy Committee (MPC) meeting on Tuesday.

According to him, the reduced circulation of the lower denominations is not because they have been withdrawn but is largely driven by market demand and supply.

“The lower naira denominations are still legal tender. Until the Central Bank says otherwise, Nigerians should regard them as valid for transactions,” he said.

He added that the limited availability of the notes in circulation is simply a reflection of demand and supply dynamics.

The clarification comes after the MPC retained the Monetary Policy Rate (MPR) at 26.50 per cent for the second consecutive meeting, following Nigeria’s inflation rate of 15.91 per cent recorded in June.