A new report by Quartus Economics has called on the Central Bank of Nigeria (CBN) to introduce higher denominations of N10,000 and N20,000 notes, citing the sharp decline in the value of the naira and its effect on cash transactions.
The report explained that the current highest denomination, the N1,000 note, has lost much of its purchasing power due to the continuous depreciation of the currency.
According to the economic review titled “Is Africa’s Eagle Stuck or Soaring Back to Life?”, the introduction of larger currency notes would help make the naira more practical and reduce the burden of carrying large sums for everyday transactions. “To make the naira portable again, Nigeria can introduce higher-value bills such as N10,000 or N20,000 notes, or redenominate the currency entirely,” the report stated.
Analysts at Quartus Economics pointed out that when the N1,000 note was introduced in 2005, it was worth almost seven dollars at the official exchange rate. Today, however, it is valued at less than 60 US cents. This, the report said, shows a drastic 94 percent decline in the naira’s real value over the past two decades. The report added that the absence of higher-value notes has made transactions, particularly in the informal sector, more cumbersome.
The economic think tank dismissed claims that introducing new notes could worsen inflation, describing such arguments as a myth not supported by evidence. It argued that inflation in Nigeria is driven by cost-push and demand-pull factors rather than by the denominations of the currency in circulation. “Issuing higher-value notes does not cause inflation; it only makes transactions easier and reduces printing costs,” the report noted.
The group further highlighted the cost burden faced by the CBN in printing, distributing, and maintaining lower-value notes. It said the introduction of N10,000 and N20,000 notes would improve efficiency, reduce the cost of cash management, and align Nigeria’s currency structure with those of other developing nations. The review also recalled the CBN’s earlier attempt to introduce a N5,000 note in 2012 under then-Governor Sanusi Lamido Sanusi, which was later dropped after public criticism.
Quartus Economics stressed that the economic conditions that led to the 2012 proposal have worsened, making a review of the currency structure even more urgent. “The naira has lost its practicality as a medium of exchange for large transactions. Redenomination or higher-value notes are essential to restore its functionality,” the report concluded.
