A new report by Quartus Economics has called on the Central Bank of Nigeria (CBN) to introduce higher-denomination currency notes—such as ₦10,000 and ₦20,000 bills—to restore the naira’s portability and ease the rising cost of cash transactions.
The report, titled “Is Africa’s Eagle Stuck or Soaring Back to Life?”, argues that the naira’s continued depreciation has rendered the current ₦1,000 note—the country’s highest denomination—largely ineffective in terms of purchasing power.
“When the ₦1,000 note was introduced in 2005, it was worth nearly $7 at the official rate. Today, it’s valued at less than 60 cents,” the report stated, highlighting the steep erosion in value over the past two decades.
Quartus Economics contends that the introduction of higher-value notes—or a full currency redenomination—would make everyday transactions easier, especially in the informal sector, where cash remains the dominant medium of exchange. Many traders and rural consumers now carry large bundles of cash for routine purchases that could otherwise be handled with a few higher-denomination notes.
The report dismissed the popular belief that introducing higher-value notes could worsen inflation, describing it as a “myth unsupported by evidence.” It explained that inflation is driven by production costs and consumer demand, not by the face value of currency denominations.
“Countries introduce higher-value notes to maintain portability after a period of currency depreciation—not to trigger inflation,” it added.
Quartus also noted that the cost of printing, transporting, and securing large quantities of low-value notes has become economically burdensome for the CBN. The think tank argues that adopting higher denominations would reduce these costs while aligning Nigeria’s currency structure with that of other emerging economies.
The report recalled that the CBN once proposed introducing a ₦5,000 note in 2012 under then-Governor Sanusi Lamido Sanusi, but the idea was shelved following public backlash. Quartus, however, maintains that the rationale for higher notes remains valid today, given the 94% decline in the naira’s real value.
According to the analysts, that decline was measured using the price rise of essential goods: a kilogram of imported rice has surged from ₦150 in 2005 to about ₦2,500, while a one-way flight from Lagos to Abuja has climbed from ₦12,000 to over ₦150,000.
“This is not about printing more money,” the report emphasized, “but about modernising the naira to reflect economic realities and make transactions more practical.”
