Economic experts have advised the Central Bank of Nigeria (CBN) to consider introducing new naira denominations of ₦10,000 and ₦20,000 to ease cash transactions and restore the currency’s convenience in everyday use.
The recommendation came from an economic assessment released on Thursday, October 30, 2025, by the research firm Quartus Economics, in a report titled “Is Africa’s Eagle Stuck or Soaring Back to Life?”
The report observed that the prolonged decline in the naira’s value has made the ₦1,000 note which is currently Nigeria’s highest denomination, largely ineffective for daily commercial activities.
According to the analysts, the ₦1,000 note, which exchanged for about seven US dollars when it debuted in 2005, is now worth less than one dollar, representing a real value loss of over 94 percent.
They argued that introducing higher-value notes would not worsen inflation, since inflation is driven by production, supply, and demand dynamics rather than the nominal value of banknotes.
“Several countries that have experienced long-term currency depreciation introduced higher-value notes to maintain convenience in physical transactions, not to fuel inflation,” the review stated.
The report added that the informal economy, particularly traders and residents in rural areas, has been most affected, as they are often forced to carry bulky amounts of cash for routine purchases.
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It further noted that the CBN is incurring rising costs on the production, distribution, and security of lower-denomination notes, describing the situation as financially unsustainable.
Quartus Economics therefore recommended that the apex bank either introduce ₦10,000 and ₦20,000 notes or undertake a structured redenomination exercise to modernise Nigeria’s currency system.
The analysts emphasised that the proposal should not be mistaken for money printing but seen as an adjustment to reflect current economic realities and strengthen public confidence in the naira.