Economists call for ₦10,000, ₦20,000 notes to ease Nigeria’s cash burden

Economic analysts have called on the Central Bank of Nigeria (CBN) to consider introducing ₦10,000 and ₦20,000 banknotes as part of efforts to address the declining value of the naira and make cash transactions more convenient for citizens.

The recommendation, contained in a recent economic review, noted that the continuous depreciation of the naira has significantly reduced the purchasing power of existing notes, making the ₦1,000 bill—Nigeria’s highest denomination—insufficient for major transactions.

According to the report, the introduction of higher-value notes or a full currency review would make the naira more portable and better suited for today’s economic realities. Analysts observed that the sharp drop in the naira’s value over the years has made it increasingly cumbersome for traders, transport operators, and consumers who rely heavily on cash for daily transactions.

“The value of the naira has fallen so much that people now need stacks of cash to buy ordinary goods. It’s time to modernise the currency structure to reflect current realities,” the report stated.

The analysts further dismissed the belief that issuing higher denominations could worsen inflation, explaining that price increases are driven by production costs, exchange rate pressures, and consumer demand—not by the value printed on currency notes.

They added that maintaining lower-value denominations has become costly for the apex bank, as printing, transporting, and securing cash now consume huge resources.

“With the rising cost of production and logistics, the economy would benefit more from fewer, higher-value notes that reduce the overall cost of currency management,” the report said.

It also pointed out that several developing nations have adopted higher denominations or restructured their currencies to deal with long-term depreciation and improve monetary efficiency.

Economic observers believe that introducing ₦10,000 and ₦20,000 notes could make transactions easier, especially in rural and informal markets where electronic payment systems remain limited.

The report concluded that the proposal is not about printing more money, but about redesigning Nigeria’s currency system to reflect the realities of inflation, modern trade, and convenience for millions of cash dependent Nigerians.