In what could become one of the most consequential monetary policy debates of the decade, a new report by Quartus Economics has ignited national discussion after calling on the Central Bank of Nigeria (CBN) to introduce higher-value currency denominations — specifically ₦10,000 and ₦20,000 notes — to restore the naira’s portability, reduce the escalating cost of cash transactions, and align the nation’s currency system with current economic realities.
The report, provocatively titled “Is Africa’s Eagle Stuck or Soaring Back to Life?”, paints a sobering picture of the Nigerian currency’s decline over the past two decades. Once one of Africa’s strongest and most stable units, the naira has now deteriorated to a point where its highest denomination, the ₦1,000 note, has become almost worthless in practical terms — unable to buy even a modest meal or meet basic daily expenses in major cities.
The Collapse of the Naira’s Real Value
According to the analysts at Quartus Economics, the naira’s dramatic fall in value has rendered the ₦1,000 note — introduced in 2005 under former CBN Governor Charles Soludo — obsolete in real-world purchasing terms. At the time of its introduction, ₦1,000 was equivalent to roughly $7 at the official exchange rate. Today, it is worth less than 60 US cents, a decline that underscores the naira’s near-total erosion in global and domestic purchasing power.
The report’s authors argue that the currency’s weakness has reached a point where daily cash-based transactions are becoming logistically burdensome, especially in Nigeria’s vast informal sector. Small traders, artisans, market women, and rural consumers are now forced to carry bundles of low-value notes for simple purchases that, two decades ago, required only a few bills.
“It is no longer just an issue of exchange rate,” the report stated. “The naira has lost so much real value that its physical denominations are now impractical. Portability has collapsed, and transaction costs are rising sharply for ordinary Nigerians.”
The Economics of Portability
The idea of “currency portability” — the ease with which people can carry and transact with cash — is at the heart of the Quartus Economics argument. Analysts note that as a currency loses value due to inflation and depreciation, central banks around the world often respond by introducing higher denominations to maintain convenience and reduce the cost of moving physical cash.
“When a country experiences sustained inflation and currency depreciation, higher-value notes are introduced not to cause inflation but to maintain practicality,” the report explains.
It further debunks a common myth in public discourse: that printing higher denominations fuels inflation. “Inflation is either cost-push or demand-pull,” the analysts said. “Neither is related to currency denomination. Introducing a ₦10,000 note does not make bread more expensive; it merely makes it easier to buy bread without carrying an entire bundle of ₦500 notes.”
A 94% Decline in Real Value — The Startling Math
To illustrate how much the naira’s real value has collapsed, Quartus Economics used a comparative analysis of two basic indicators — the price of imported rice and the cost of a local flight ticket.
In 2005, a kilogram of imported rice sold for about ₦150. Today, the same product costs approximately ₦2,500. Likewise, a one-way flight ticket from Lagos to Abuja that cost ₦12,000 two decades ago now averages over ₦150,000.
“These two indicators alone show that the naira has lost nearly 94 percent of its purchasing power since 2005,” the report notes. “A ₦5,000 note proposed in 2012 would have the purchasing equivalence of ₦50,000 today. That is how much value the naira has lost.”
A Historical Echo — The Abandoned ₦5,000 Note Debate
The current proposal evokes memories of 2012, when then-CBN Governor Sanusi Lamido Sanusi proposed introducing a ₦5,000 note as part of a broader currency restructuring plan. That initiative was met with fierce opposition from labour unions, civil society, and sections of the political class, who claimed that the policy would worsen inflation and create hardship for the poor.
Under intense public pressure, the Goodluck Jonathan administration suspended the plan. However, Quartus Economics argues that history has now vindicated Sanusi’s foresight.
“What was politically unpopular in 2012 has become economically necessary in 2025,” the report asserts. “If the ₦5,000 note had been introduced a decade ago, Nigeria’s currency system would have remained balanced and adaptable to inflationary trends.”
The Cost of Ignoring the Issue
Beyond convenience, the report warns that the CBN’s continued reliance on lower denominations is now costing the country billions in printing, transport, and security expenses.
Nigeria’s currency management is one of the most expensive in Africa. Each year, the CBN spends tens of billions of naira printing and replacing worn-out notes. With inflation accelerating, the frequency of printing has increased, placing an additional burden on the apex bank’s operating costs.
“Outside the formal sector and the urban elite, the naira’s heavy weight is a drag on the economy,” the report said. “The cost of printing, distributing, and safeguarding vast quantities of small-value notes is unsustainable. Introducing higher-value denominations would cut these costs dramatically.”
A senior CBN official, who spoke to DOYA News on condition of anonymity, acknowledged that the logistics of maintaining Nigeria’s current cash system have become increasingly untenable. “We are essentially printing low-value money at high cost,” the source said. “Every ₦1,000 note costs nearly as much to print as it’s worth after transport and security expenses.”
Cash-Based Sectors Feeling the Heat
While the federal government has been pushing toward a cashless economy, Nigeria’s informal sector — which accounts for over 60 percent of GDP and nearly 80 percent of employment — still depends heavily on physical cash for transactions.
From rural markets in Katsina to transport hubs in Onitsha, physical naira notes remain the dominant medium of exchange. The burden of carrying large volumes of small bills has not only reduced transaction speed but also increased exposure to theft and counterfeit risk.
A market trader in Lagos’s Mile 12 market told DOYA News that it’s now common to carry over ₦500,000 in cash daily, often in bundles of ₦500 or ₦1,000 notes. “You can fill a small bag just to pay for one basket of goods,” she said. “It’s stressful and dangerous.”
Introducing ₦10,000 or ₦20,000 notes, analysts argue, would immediately ease such logistical pressure and make business operations smoother, especially for wholesale traders and transport operators.
The Myth of Inflation Fear
Critics of higher denomination notes often cite fears that such a move could worsen inflation by psychologically encouraging higher prices. But economic evidence does not support this claim.
Quartus Economics points to examples from countries like Ghana, Kenya, and India — all of which introduced higher-value notes following sustained inflationary periods, without triggering any inflation spike attributable to the denomination change.
“Currency denomination is a reflection of inflation, not a cause of it,” said Dr. Felix Adedeji, a monetary policy researcher and contributor to the report. “People mistake correlation for causation. Prices rise because production costs rise, not because central banks print bigger notes.”
A Case for Redenomination — Or Reform?
The report also floats a more radical alternative: redenomination. This would involve slashing zeros from the naira to simplify transactions without necessarily introducing higher-value notes. For instance, ₦1,000 could be redenominated as ₦1, effectively restoring the symbolic strength of the naira.
However, redenomination carries its own challenges, particularly in public perception and transition costs. Analysts believe the introduction of ₦10,000 and ₦20,000 notes would be a more pragmatic short-term step.
The CBN’s Silence and Market Speculation
So far, the Central Bank of Nigeria has not officially responded to the report, but its internal policy teams are said to be reviewing the idea. Senior officials within the bank have privately expressed openness to reviewing the denomination structure, though they warn that any such move must be carefully sequenced to avoid counterfeiting risks and political backlash.
A source within the CBN’s Currency Operations Department revealed that “there have been informal discussions about the need to rebalance the naira’s denomination structure.” However, the same source stressed that “public education would be key to ensuring people understand that higher notes don’t mean more money — just more efficient money.”
Comparing Global Currency Systems
Nigeria’s situation is not unique. Many developing economies have introduced higher notes as their currencies depreciated. Kenya’s highest note, for instance, is equivalent to around ₦6,000, while in Ghana, the ₵200 note equals roughly ₦18,000 in value. South Africa’s R200 note is worth over ₦18,500 at current exchange rates.
“Nigeria’s currency system is outdated relative to its inflation rate and economic scale,” said economist Kemi Agbaje of the Lagos Business School. “If we want to modernize our economy, our monetary tools must evolve with it.”
Public Reaction: Mixed but Growing Support
Public opinion remains divided. While some Nigerians fear the policy could signal further economic decline, others view it as a practical step toward financial modernization.
Social media has been flooded with debates since the report surfaced. On X (formerly Twitter), one user wrote: “We already have bundles of ₦1,000 notes that buy almost nothing. Why not make life easier with ₦10,000 notes?” Another countered: “Instead of printing new notes, fix the economy. Bigger notes don’t stop inflation.”
Economists, however, insist that both can happen simultaneously — monetary modernization alongside structural reforms.
Conclusion: A Nation at a Monetary Crossroads
The call by Quartus Economics has reawakened a conversation that Nigeria avoided more than a decade ago — a conversation about the practicality, symbolism, and efficiency of its currency system.
As inflation persists and the naira continues its downward slide, the pressure on the CBN to act decisively will only grow. Whether through higher denominations or a full redenomination exercise, one thing is clear: the naira, once a proud symbol of stability, is now too weak and too cumbersome to serve its purpose efficiently.
The introduction of ₦10,000 and ₦20,000 notes may not fix Nigeria’s economy, but it could at least restore dignity to the currency in people’s wallets — a small but symbolic step toward rebuilding faith in the nation’s financial system.
— End of Investigative Report —