"Quartus Economics: The Case for CBN to Launch N10,000 and N20,000 Notes"

Table of Contents

• Economic Review by Quartus Economics
• Introduction of Higher Currency Notes
• Naira Depreciation and Its Impact
• Inflation Myths
• Current Economic Situation

A recent economic analysis by Quartus Economics has highlighted the need for the Central Bank of Nigeria (CBN) to consider the introduction of higher-value currency notes, such as N10,000 and N20,000.

The report indicates that the introduction of these higher denomination notes would enhance the naira’s portability and help alleviate the increasing costs associated with cash transactions.

Entitled ‘Is Africa’s Eagle Stuck or Soaring Back to Life?’, the report asserts that the ongoing depreciation of the naira has rendered the N1,000 note, the country’s highest denomination, nearly obsolete regarding its purchasing power.

“To restore the naira's portability, Nigeria could introduce higher-value bills, such as N10,000 or N20,000 notes, or even consider redenominating the currency altogether,” the report suggested.

The report refuted claims that issuing higher-value notes could exacerbate inflation, labeling such beliefs as a “myth lacking supporting evidence.” It emphasized that inflation is influenced by cost-push and demand-pull factors, rather than by the denomination of currency.

“Inflation arises from cost-push or demand-pull factors, neither of which are related to currency denomination. Instead, nations introduce higher notes to preserve portability following a period of currency depreciation,” the report clarified.

According to DAILY POST, the purchasing power of the naira has been declining due to rising inflation in the country.

As of September, the inflation rate was recorded at 18.02 percent, while the exchange rate stood at N1,448.20 per dollar on Wednesday, October 29, 2025.