A new economic review by Quartus Economics has urged the Central Bank of Nigeria to introduce higher-value currency notes such as N10,000 and N20,000 bills to restore the naira’s portability and reduce the cost of cash transactions.
The report, titled “Is Africa’s Eagle Stuck or Soaring Back to Life?”, noted that the continued depreciation of the naira has rendered the N1,000 note, Nigeria’s highest denomination, practically obsolete in purchasing power.
“To make the naira portable again, Nigeria can introduce higher-value bills, e.g., N10,000 or N20,000 notes, or redenominate the currency entirely,” the report stated.
The analysts explained that if the proposed N5,000 note from 2012 had been introduced, its value today would be equivalent to about N50,000, reflecting a 94 per cent decline in the naira’s real value over the last twenty years.
Quartus Economics dismissed concerns that introducing higher-value notes could fuel inflation, describing such fears as “a myth unsupported by evidence.” It explained that inflation in Nigeria is mainly cost-push or demand-pull, not a result of currency denomination.
“When the N1,000 note was introduced in 2005, it was worth nearly $7 at the official rate. Today, it is worth less than 60 US cents, showing the extent of depreciation,” the report observed.
The review highlighted how this depreciation has made everyday transactions cumbersome, especially in the informal sector, where cash dominates. Traders, artisans, and rural consumers now carry large volumes of cash for small transactions that could be easily completed with fewer higher-value notes.
Beyond inconvenience, the firm said the cost of printing, transporting, and securing low-value notes had become “prohibitive” for the Central Bank of Nigeria. “Outside the formal sector and the urban elite, the naira’s heavy weight is a drag on the economy and slows down growth,” the report added.
According to Quartus Economics, introducing N10,000 and N20,000 notes, or undertaking a broader redenomination exercise, would improve transaction efficiency, reduce printing costs, and bring Nigeria’s currency structure in line with other emerging economies.
The PUNCH recalls that the CBN proposed introducing a N5,000 note in 2012 under then-Governor Sanusi Lamido Sanusi, but the plan was shelved after widespread public opposition. Quartus Economics argued that the same policy logic still applies today, given the naira’s steep decline in value.
The firm clarified that the proposal is not about “printing more money” but modernising Nigeria’s currency to reflect its current economic realities.
To illustrate the naira’s sharp loss of value, the report compared the cost of essential items between 2005 and now. The price of a kilogram of imported rice has risen from about N150 to N2,500, while a one-way flight ticket from Lagos to Abuja has increased from N12,000 to over N150,000.
“These indicators show how much the naira has lost its purchasing power,” the report concluded, stressing that higher-value notes are needed to make the naira practical and portable once again.
