INFLATION: WE'LL SOON REDUCE VOLUME OF N500, N1000 IN CIRCULATION, SAYS EMEFIELE

In order to control inflation, the Central Bank of Nigeria (CBN) says it intends to restrict the amount of larger denomination notes in circulation, such as the N500 and N1000.

This was said by CBN Governor Godwin Emefiele on Tuesday while answering inquiries from reporters at the Monetary Policy Committee (MPC) meeting in Abuja.

Emefiele suggested that factors contributing to the nation's inflation may include raising the high denomination of the currency.

"Rarely you find some people spend £20. Nobody sees £50. If you go around carrying £50 in the UK, they will begin to suspect you. Whereas, the reverse is what is happening in Nigeria, Nigerians want to carry N1,000 or N500," he said

"In fact, we're beginning to see or think that increasing the high denomination bills is also part of what may even be fuelling inflation.

"So, over time, we will reduce the volume of N500 and

N1000 in circulation.

"Let people carry N50 around. If you want to do high-value transactions, embrace online, embrace our agency programme, embrace our mobile banking programme. That is what you need. You want to conduct legal banking or financial services transactions, you have no business carrying N1,000."