Report Urges CBN To Introduce N10k, N20k Notes
THECONSCIENCE NG reports that 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 — to restore the naira’s portability and curb the growing cost of cash transactions.
The report, titled “Is Africa’s Eagle Stuck or Soaring Back to Life?”, warned that the persistent depreciation of the naira has rendered the ₦1,000 note currently Nigeria’s highest denomination practically obsolete 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 the analysis, a ₦5,000 note that could have been introduced in 2012 would now equate to roughly ₦50,000 in today’s value reflecting a 94% decline in the naira’s real purchasing power over the past two decades.
Dismissing concerns that introducing higher denominations could worsen inflation, the report described such fears as “a myth unsupported by evidence.” It argued that inflation is driven by cost-push and demand-pull factors, not by the face value of currency notes.
“Countries introduce higher-value notes to maintain portability after significant currency depreciation not to trigger inflation,” the report clarified.
When the ₦1,000 note was introduced in 2005, it was worth nearly $7 at the official exchange rate. Today, it is valued at less than 60 US cents, underscoring the naira’s steep loss of value.
Quartus Economics noted that this depreciation has made everyday transactions increasingly cumbersome, particularly in the informal sector, where cash remains the dominant medium of exchange. Traders, artisans, and rural consumers now carry large sums of cash for routine purchases that could be simplified with higher-value notes.
The report also highlighted the rising cost of printing, transporting, and securing low-value notes, describing this as an unnecessary financial strain on the CBN.
“Outside the formal sector and the urban elite, the naira’s heavy weight is a drag on the economy and slows growth. Moreover, the cost of printing and moving today’s low-value notes is prohibitive,” it stated.
Quartus Economics further argued that introducing ₦10,000 and ₦20,000 notes, or undertaking a comprehensive currency redenomination, would improve transaction efficiency, reduce printing costs, and align Nigeria’s currency structure with that of other emerging economies.
It recalled that the CBN had proposed a ₦5,000 note in 2012 under then-Governor Sanusi Lamido Sanusi, but the plan was shelved following public opposition. Quartus Economics maintained that the rationale behind that proposal remains valid today, given the naira’s severe depreciation.
The firm stressed that the call for higher denominations was not about printing more money, but about modernising the naira to reflect current economic realities and make daily transactions more practical.
The report measured the naira’s 94% loss in value using the cost of two essential indicators — a kilogram of imported rice and a one-way flight from Lagos to Abuja.
In 2005, a kilogram of rice cost about ₦150, but now averages ₦2,500, while the cost of a local flight has surged from ₦12,000 to over ₦150,000.
“These indicators show how much the naira has lost its purchasing power, and why a higher-value note is needed to make the naira portable again,” the report concluded.
