CBN Governor Cardoso Confirms N5, N10, N20, N50, N100 Notes Remain Legal Tender

Central Bank of Nigeria (CBN) Governor Olayemi Cardoso has stated clearly that lower denomination naira notes, including N5, N10, N20, N50, and N100, are still legal tender in the country. He made the clarification on Tuesday while responding to questions at the press briefing following the 306th Monetary Policy Committee (MPC) meeting.

Scarcity Driven by Demand and Supply

Cardoso explained that the perceived scarcity of these lower denominations in circulation is not a sign of demonetisation but a result of normal market forces. “They (lower naira denominations) are still legal tender. To the extent that the Central Bank has not said otherwise, please assume they are legal tender,” the governor said.

He added: “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.” The statement aims to put to rest widespread speculation that the CBN might be phasing out the smaller notes.

MPC Holds Interest Rate at 26.50 Percent

The clarification came as the MPC concluded its meeting, where it voted to retain the Monetary Policy Rate (MPR) at 26.50 percent for the second consecutive time. The decision was taken against the backdrop of a 15.91 percent inflation rate recorded in June. The hold signals a cautious approach by the committee as it assesses the impact of previous rate hikes on the economy.

What This Means for Nigerians and the Naira

For everyday consumers and businesses, the governor’s confirmation removes any uncertainty about accepting lower naira notes. Nigerians can continue to use N5, N10, N20, N50, and N100 notes for transactions without fear of rejection. The statement also reinforces the CBN’s position that any shortage of these notes is temporary and linked to circulation patterns rather than policy changes. This should ease concerns among traders and small business owners who rely heavily on small change for daily operations.