A recent economic review by Quartus Economics suggests that the Central Bank of Nigeria (CBN) should consider introducing higher-value currency notes, such as N10,000 and N20,000, to restore the naira’s portability and reduce the rising cost of cash transactions. The report, titled ‘Is Africa’s Eagle Stuck or Soaring Back to Life?’ notes that the continued depreciation of the naira has significantly reduced the purchasing power of the N1,000 note, the country’s highest denomination.

The introduction of higher-value notes would address the issue of the naira’s diminished portability, according to the report. The depreciation of the naira has rendered the current denominations less practical for transactions, leading to increased costs. To mitigate this, the report recommends introducing higher-value bills, such as N10,000 or N20,000 notes, or redenominating the currency entirely.

The report dismisses concerns that introducing higher-value notes could exacerbate inflation, describing such assumptions as “myth unsupported by evidence.” Instead, it highlights that inflation is driven by cost-push and demand-pull factors, rather than currency denomination. The introduction of higher-value notes is a common practice in countries that have experienced significant currency depreciation, aimed at maintaining the portability of their currency.

Nigeria has been grappling with rising inflation, which stood at 18.02% as of September, and a declining exchange rate, with the naira trading at N1,448.20 per dollar as of October 29, 2025. The report’s recommendations aim to address the practical implications of these economic trends on the country’s currency. By introducing higher-value notes, the CBN can help reduce the costs associated with cash transactions and improve the overall efficiency of the economy.

The proposed introduction of higher-value notes is a significant development in Nigeria’s economic landscape. As the country navigates the challenges of inflation and currency depreciation, the CBN’s consideration of this recommendation could have far-reaching implications for the nation’s economy. The move could potentially reduce the cost of cash transactions, improve the portability of the naira, and enhance the overall efficiency of the economy.