ECONOMIC ANALYSTS CALL FOR INTRODUCTION OF ₦10,000 AND ₦20,000 NOTES TO RESTORE NAIRA’S PORTABILITY AND REDUCE CASH BURDEN

…as Quartus Economics Urges CBN to Act, as Naira loses 94% of Real Value Over Two Decades

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

The report, titled “Is Africa’s Eagle Stuck or Soaring Back to Life?”, paints a stark picture of the naira’s depreciation, warning that Nigeria’s highest denomination, the ₦1,000 note, has become “practically obsolete in terms of purchasing power.”

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

According to the analysts, a ₦5,000 note proposed in 2012 would now be equivalent to ₦50,000 in real value today, highlighting the 94 per cent decline in the naira’s worth over the past two decades.

The report strongly countered public fears that introducing higher-value notes could fuel inflation, describing such concerns as a “myth unsupported by evidence.”

“Inflation is cost-push or demand-pull. Neither is related to currency denomination. Instead, countries introduce higher notes to maintain portability after an era of currency depreciation,” the report clarified.

It further noted that inflation arises from economic fundamentals, such as production costs and consumer demand not from the denomination of currency notes.

When the ₦1,000 note debuted in 2005, it was worth nearly $7 at the official exchange rate. Today, it is valued at less than 60 US cents, underscoring the drastic erosion of Nigeria’s currency.

Quartus Economics observed that this depreciation has turned everyday transactions into logistical challenges, especially within the informal sector, where cash remains the primary means of exchange. Traders, artisans, and rural dwellers are now compelled to move around with bulky cash for purchases that could easily be settled using fewer, higher-value notes.

The report also drew attention to the growing fiscal burden on the CBN due to the printing, transportation, and security of lower-value notes.

“Outside the formal sector and the urban elite, the naira’s heavy weight is a drag on the economy and slows down growth. Besides, the cost of printing and transporting today’s low-value notes is prohibitive,” the review emphasized.

It suggested that introducing ₦10,000 and ₦20,000 notes, or opting for a redenomination policy, would reduce printing costs, improve transaction efficiency, and align Nigeria’s monetary structure with other emerging economies.

The CBN once proposed a ₦5,000 note in 2012 under then-Governor Sanusi Lamido Sanusi, but the plan was dropped following public opposition. Quartus Economics now insists that the economic logic behind that policy remains valid, especially in light of the naira’s sharp decline since then.

The firm clarified that its proposal was not an attempt to “print more money,” but a call to modernize the naira’s denominations in response to Nigeria’s current macroeconomic realities.

To demonstrate the naira’s 94% value loss, the report compared the cost of basic commodities and services over time.

In 2005, a kilogram of imported rice cost around ₦150, while a local flight ticket from Lagos to Abuja averaged ₦12,000. Today, rice sells for ₦2,500 per kilogram, and the same flight costs over ₦150,000.

“These indicators show how much the naira has lost its purchasing power, and a higher-value note is needed to make the naira portable,” the report concluded.

With the nation grappling with inflationary pressures and diminishing currency value, the call by Quartus Economics has reignited national debate on whether Nigeria’s monetary policy should evolve to match the realities of its modern economy.