A new economic review by Quartus Economics has sparked national debate by urging the Central Bank of Nigeria (CBN) to introduce N10,000 and N20,000 single banknotes in response to the naira’s declining purchasing power and rising cost of cash transactions.
The report, titled “Is Africa’s Eagle Stuck or Soaring Back to Life?”, argues that Nigeria’s highest denomination, the N1,000 note, has become practically obsolete in terms of real value due to sustained inflation and currency depreciation. Analysts estimate that the proposed N5,000 note from 2012 would now be equivalent to N50,000 today, reflecting a 94% decline in the naira’s real value over the past two decades.
The report also highlights the logistical and economic strain placed on businesses and individuals who must handle large quantities of cash for routine transactions. It emphasizes that the introduction of higher-value notes could streamline commerce, reduce cash-handling costs, and improve financial efficiency.
In response, financial experts and stakeholders have called on the CBN to review its currency policy and consider the long-term implications of maintaining outdated denominations. While the apex bank has yet to issue an official statement, the proposal has reignited discussions around currency modernization and monetary reform.