Calls Mount for CBN To Introduce ₦10,000 And ₦20,000 Banknotes

A new economic review by Quartus Economics has called on the Central Bank of Nigeria (CBN) to introduce higher-value currency denominations — such as ₦10,000 and ₦20,000 notes — to restore the naira’s portability and curb the increasing cost of cash transactions.

The report, titled “Is Africa’s Eagle Stuck or Soaring Back to Life?”, noted that the persistent depreciation of the naira has rendered the current ₦1,000 note, Nigeria’s highest denomination, almost ineffective in terms of purchasing power.

“To make the naira portable again, Nigeria can introduce higher-value bills such as ₦10,000 or ₦20,000 notes, or redenominate the currency entirely,” the report stated.

According to Quartus analysts, a ₦5,000 note proposed in 2012 would now have the same value as a ₦50,000 note today, highlighting a 94% decline in the naira’s real value over the past two decades. They dismissed fears that higher denominations could fuel inflation, describing such claims as a “myth unsupported by evidence.”

“Inflation is either cost-push or demand-pull — neither is driven by currency denomination,” the report explained. “Countries typically introduce higher-value notes to preserve portability after prolonged depreciation, not to cause inflation.”

When the ₦1,000 note debuted in 2005, it was worth nearly $7 at the official exchange rate. Today, it’s valued at less than 60 cents, reflecting the sharp erosion in the naira’s purchasing power.

Quartus Economics further observed that this depreciation has made day-to-day transactions cumbersome, especially in the informal sector, where cash remains dominant. Traders, artisans, and rural dwellers now move around with large bundles of cash to complete simple transactions that could easily be handled with a few higher-value notes.

The report also highlighted the rising cost of printing, transporting, and securing lower-value notes, calling it a financial burden on the CBN.
“Outside the formal sector and the urban elite, the naira’s heavy weight is slowing economic activity. The cost of producing and moving low-value notes is now unsustainable,” it stated.

Quartus argued that introducing ₦10,000 and ₦20,000 notes—or undertaking a broader redenomination exercise—would enhance transaction efficiency, reduce operational costs, and bring Nigeria’s currency structure in line with other emerging economies.

The report recalled that the CBN had once proposed a ₦5,000 note in 2012 under then-Governor Sanusi Lamido Sanusi, but the idea was abandoned after public backlash. Quartus now contends that the economic rationale for that policy remains valid, given the naira’s steep decline in value.

The firm clarified that the proposed measure was not about printing more money, but about modernising the naira’s denominations to suit current realities and make financial transactions more practical.

To illustrate the naira’s decline, Quartus compared the 2005 prices of essential items — a kilogram of imported rice and a one-way Lagos–Abuja flight — with current costs. The price of rice rose from ₦150 to ₦2,500, while flight fares jumped from ₦12,000 to over ₦150,000, indicating a 94% loss in value.

“These figures clearly show how much purchasing power the naira has lost,” the report concluded. “Introducing higher-value notes is now essential to make the naira portable again.”