A new report by Quartus Economics has urged the Central Bank of Nigeria (CBN) to introduce ₦10,000 and ₦20,000 notes to restore the naira’s portability and reflect the steep decline in its purchasing power.
The report, titled “Is Africa’s Eagle Stuck or Soaring Back to Life?”, revealed that the naira has lost about 94% of its real value since 2005 — the year the ₦1,000 note was introduced.
Economists Say CBN Needs to Modernise Naira
According to Quartus Economics, the naira’s continued fall has made the ₦1,000 note almost useless for major cash transactions. The group said Nigeria must either redenominate the naira or introduce higher-value bills to align with current realities.
“To make the naira portable again, Nigeria can introduce ₦10,000 or ₦20,000 notes, or redenominate the currency entirely,” the report stated.
The analysts noted that the idea is not about printing more money, but about modernising Nigeria’s currency structure to match global standards and ease the rising cost of handling cash.
Naira’s 94% Value Drop: The Numbers Behind It
In 2005, ₦1,000 exchanged for around $7 at the official rate. Today, it is worth less than 60 US cents, reflecting the naira’s massive depreciation.
Key price comparisons from the report:
- 1kg of rice: ₦150 (2005) → ₦2,500 (2025)
- Flight ticket (Lagos–Abuja): ₦12,000 → ₦150,000
“These figures show how much the naira has lost its purchasing power,” the economists said.
Higher Denominations Won’t Cause Inflation
The report dismissed claims that introducing ₦10,000 and ₦20,000 notes would worsen inflation.
“Inflation is caused by cost-push or demand-pull factors, not by currency denomination,” the researchers explained.
Instead, they said the move would make transactions easier, especially for traders, transporters, and rural consumers who rely heavily on cash.
Printing Costs Now Unsustainable
Quartus Economics warned that the cost of printing, transporting, and securing lower-value notes is draining government resources.
“Outside the formal sector, the naira’s heavy weight has become a drag on the economy,” the report stated.
It added that higher-value notes would reduce printing costs and simplify cash handling across banks, businesses, and ATMs.
Background: Sanusi’s ₦5,000 Note Proposal
The CBN once proposed a ₦5,000 note in 2012 under then-Governor Sanusi Lamido Sanusi, but public opposition forced the plan to be shelved.
Quartus Economics says the same logic now holds even stronger, arguing that Nigeria must review its denomination structure to restore convenience and economic efficiency.