An economic review has advised the Central Bank of Nigeria to issue higher-denomination naira notes such as N10,000 and N20,000 to restore the currency’s portability and ease the rising cost of cash transactions.
The report observed that the naira’s persistent depreciation has rendered the N1,000 note—Nigeria’s highest denomination—almost valueless in real purchasing terms. It noted that while a N1,000 note was worth about $7 in 2005, it now equals less than 60 cents, reflecting a 94% loss in value over two decades.
Analysts argued that higher-value notes would not worsen inflation, as price increases are driven by production and demand factors, not currency denomination. They explained that many countries issue higher-value bills to maintain convenience after major currency depreciation, not to trigger inflation.
The review highlighted that everyday transactions, especially in the informal sector, have become cumbersome as traders and rural dwellers must carry large amounts of cash for simple purchases. It also stressed that the cost of printing, moving, and securing existing lower-value notes has become excessively high for the apex bank.
Introducing N10,000 and N20,000 notes—or undertaking a currency redenomination—was described as a practical step to enhance transaction efficiency, cut operational expenses, and align Nigeria’s currency system with global standards.
The analysts maintained that this proposal does not mean printing more money but simply modernising the naira to match present economic realities and the steep decline in its purchasing power.
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