An independent economic think tank, Quartus Economics, has called on the Central Bank of Nigeria (CBN) to introduce new higher-value currency notes specifically ₦10,000 and ₦20,000 bills to reflect current market realities and ease the burden of cash transactions across the country.
The advisory, contained in a new report titled “Is Africa’s Eagle Stuck or Soaring Back to Life?”, argues that the naira’s persistent depreciation has rendered the ₦1,000 note, introduced in 2005, almost worthless in purchasing power.
“When the ₦1,000 note was launched, it was worth about $7 at the official exchange rate. Today, it buys less than 60 US cents,” the report noted, describing the situation as a reflection of the naira’s “severe erosion of real value.”
Quartus Economics explained that introducing higher-value notes would not fuel inflation, contrary to popular belief. It said inflation in Nigeria is mainly driven by cost-push and demand-pull factors such as production expenses and high demand rather than currency denominations.
“Countries introduce higher-value notes after long periods of currency depreciation to preserve portability and transaction efficiency, not to trigger inflation,” the analysts stated.
According to the report, the naira has lost about 94 per cent of its value over the last two decades. A ₦5,000 note that was proposed in 2012 would now be equivalent to ₦50,000 in real terms.
The think tank warned that the cost of printing, securing, and transporting lower-value notes has become unsustainable for the apex bank. It stressed that introducing ₦10,000 and ₦20,000 bills, or carrying out a broader redenomination, would cut costs and align Nigeria’s currency structure with that of other emerging economies.
“Outside urban centres, the naira’s low denominations have made commerce cumbersome,” the report added. “Traders, artisans, and rural consumers now carry large bundles of cash for simple transactions that could easily be handled with higher notes.”
The call echoes a similar proposal by the CBN in 2012 under then-Governor Sanusi Lamido Sanusi, which sought to introduce a ₦5,000 note but was abandoned following public backlash. Quartus Economics said that, given the naira’s current weakness, the rationale for such a policy is now stronger than ever.
The group clarified that the move would not amount to printing more money but rather modernising the naira to reflect Nigeria’s changing economic landscape.
To illustrate the extent of the currency’s decline, the report compared prices from 2005 to 2025: a kilogram of imported rice rose from ₦150 to ₦2,500, while a one-way flight from Lagos to Abuja jumped from ₦12,000 to over ₦150,000.
“These indicators clearly show that the naira has lost its purchasing power,” the report concluded. “Nigeria needs higher-value notes to restore portability and convenience in daily transactions.”