Economists Urge CBN to Introduce ₦10,000 and ₦20,000 Notes as Naira Weakens Further

A new report by Quartus Economics has called on the Central Bank of Nigeria (CBN) to issue higher-denomination currency notes — specifically ₦10,000 and ₦20,000 — to make the naira more practical for everyday use amid its sharp decline in value.

The report, titled “Is Africa’s Eagle Stuck or Soaring Back to Life?”, argued that the continuous fall of the naira has rendered the ₦1,000 note — Nigeria’s highest denomination — “nearly worthless” in real purchasing terms.

Naira’s Real Value Has Crashed

According to the economic analysts, a ₦5,000 note that was once proposed in 2012 would now be equivalent to about ₦50,000 in today’s economy, reflecting a 94% loss in the naira’s real value over the past 20 years.

The report dismissed concerns that issuing higher-value notes could worsen inflation, describing such fears as “a myth unsupported by evidence.”

“Countries introduce higher-value notes to maintain portability after currency depreciation, not to trigger inflation,” the report stated.

Everyday Cash Transactions Now a Burden

When the ₦1,000 note was first introduced in 2005, it was worth around $7 at the official rate. Today, that same note is worth less than 60 US cents, showing how deeply the currency has fallen.

Quartus Economics noted that this depreciation has made cash transactions cumbersome, especially for small businesses and rural traders who rely heavily on physical money.

It also pointed out that the cost of printing, transporting, and securing lower-value notes has become increasingly high for the CBN.

Call for Modernisation and Redenomination

The report recommended that the CBN either introduce ₦10,000 and ₦20,000 notes or redenominate the naira entirely to reflect current economic realities.

“Outside the formal sector and the urban elite, the naira’s heavy weight is a drag on the economy and slows growth,” it said.

Quartus also recalled that the ₦5,000 note proposal by former CBN Governor Sanusi Lamido Sanusi in 2012 was dropped after public backlash, but maintained that such a move now makes practical sense given the naira’s collapse.

Reflecting Today’s Economy

The report clarified that the call for higher-value notes is not about printing more money, but about making transactions simpler and reducing costs.

It cited examples such as a kilogram of imported rice rising from ₦150 in 2005 to ₦2,500 in 2025, and domestic flight tickets jumping from ₦12,000 to ₦150,000, underscoring how much the naira has lost its purchasing power.