A recent economic review by Quartus Economics recommends that the Central Bank of Nigeria (CBN) consider issuing higher‑value currency notes, such as N10,000 and N20,000, to restore the naira’s portability and lower the cost of cash transactions. Titled “Is Africa’s Eagle Stuck or Soaring Back to Life?”, the report notes that the continued depreciation of the naira has sharply reduced the purchasing power of the N1,000 note, which is currently the highest denomination. As a result, existing denominations have become impractical for everyday transactions, driving up costs.
To address this problem, the report suggests introducing higher‑value bills or even redenominating the currency entirely. It dismisses concerns that larger notes would fuel inflation, calling such assumptions a “myth unsupported by evidence.” Instead, the report emphasizes that inflation is driven by cost‑push and demand‑pull factors, not by the denomination of currency. Introducing higher‑value notes is a common response in countries that have experienced significant currency depreciation, helping to maintain the currency’s portability.
Nigeria is currently facing rising inflation, which stood at 18.02 % as of September, and a weakening exchange rate, with the naira trading at N1,448.20 per dollar on October 29, 2025. The report’s recommendations aim to mitigate the practical effects of these trends by reducing cash‑transaction costs and improving overall economic efficiency. If the CBN adopts this recommendation, it could have far‑reaching implications for the nation’s economy, enhancing the naira’s portability and streamlining financial transactions.
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