A new economic analysis by Quartus Economics has called on the Central Bank of Nigeria (CBN) to introduce higher currency denominations of ₦10,000 and ₦20,000, arguing that the current ₦1,000 note has lost significant value due to persistent inflation and currency depreciation.
According to the report, titled “Is Africa's Eagle Stuck or Soaring Back to Life?”, the ₦1,000 note — Nigeria's highest denomination since its launch in 2005 — now holds less than one-tenth of its original purchasing power. The group noted that the value erosion has made large transactions cumbersome for citizens, particularly in the informal sector where cash remains the dominant means of exchange.
Quartus Economics explained that many Nigerians are forced to carry bundles of cash for basic purchases, increasing the risk of theft, logistical costs, and currency damage. The firm maintained that issuing higher denominations would ease financial operations, reduce the frequency of cash printing, and cut operational expenses for banks and businesses handling large cash volumes.
“Introducing ₦10,000 and ₦20,000 notes will not cause inflation,” the report clarified. “Inflation is driven by excess liquidity, low production, and weak fiscal control, not by the size of currency denominations.”
While the proposal has drawn mixed reactions from analysts, the report emphasized that such a policy move should go hand in hand with structural economic reforms, including better supply-chain management, stronger production systems, and enhanced monetary discipline.
Economic observers have also pointed out that this recommendation echoes a broader call for Nigeria to consider redenominating the Naira in the long term — a process that could simplify the nation's currency structure while improving public confidence in the economy.
As of the time of writing, the CBN has not issued an official response to the proposal, but stakeholders say the idea could gain momentum if inflationary pressures continue to rise and cash handling becomes increasingly difficult for businesses and consumers alike.
+15856533044, +15856533044
-
Nkama SamuelDedicated Support -
Ezugwu EjikeSocial Support -
Okoli JonathanAdmin
