The proposal to introduce higher-value currency notes has met strong resistance from major stakeholders in Nigeria’s economy.
Both the Organised Private Sector (OPS) and the Nigeria Labour Congress (NLC) have rejected the suggestion that the Central Bank of Nigeria (CBN) issue new N10,000 and N20,000 denominations, warning that such a policy would not solve the country’s currency problems but would likely accelerate inflation, undermine the cash-less policy and damage the purchasing power of ordinary Nigerians.
The debate follows a report by Quartus Economics titled “Is Africa’s Eagle Stuck or Soaring Back to Life?”, which urges the introduction of larger bills to restore portability of the naira and reduce the cost of cash transactions.
The report argues that the current N1,000 note — Nigeria’s highest denomination — has become “practically obsolete in terms of purchasing power.”
However, in separate interviews with this newspaper, OPS and labour groups described the idea of issuing higher-value currency notes as “ill-timed, elitist and economically reckless.”
Why Stakeholders Are Opposing Higher-Value Currency Notes
Representatives of the private sector and labour have articulated multiple concerns about the proposed introduction of higher-value currency notes.
Segun Kuti-George, National Vice-President of the Nigerian Association of Small‑Scale Industrialists (NASSI), questioned the logic of issuing a N20,000 bill in a country where the minimum wage is N70,000.
He warned that “such a policy could worsen inflationary pressures” and provide a tool for the wealthy to hoard cash.
He argued that introducing higher-value currency notes would exclusively benefit affluent individuals while contradicting the government’s agenda of promoting digital payments and reducing cash transactions.
“At a time when the nation is deliberately encouraging reduced cash transactions and promoting more secure and efficient digital payment systems, issuing higher denominations would only take us backwards,” he said.
Echoing these views, the Director-General of the Nigerian Association of Small and Medium Enterprises (NASME), Eke Ubiji, labelled the idea of higher-value currency notes as “a very bogus thought” that could plunge the economy into deeper crisis.
“The economy is already in a dilemma caused by policies like the removal of fuel subsidies. Introducing higher notes will only compound the crisis,” he declared.
Dr. Femi Egbesola, President of the Association of Small Business Owners of Nigeria (ASBON), added that the issuance of higher-value currency notes would derail Nigeria’s move toward a cashless economy.
“Globally, the world is pushing for digital means of payment … By the time you begin to print higher bills, it somehow begins to drive inflation,” he asserted.
Labour’s Position on the Higher-Value Currency Notes Proposal
The Nigeria Labour Congress also weighed in, flatly rejecting the proposal for higher-value currency notes.
The NLC Assistant Secretary-General, Chris Onyeka, described the idea as “a recycled economic mistake” that would not stabilise the naira or curb inflation.
He pointed out that previous administrations had floated similar ideas.
“I’ve seen this kind of move before, and honestly, it’s nothing new,” Onyeka said.
“Let them go ahead and turn the economy upside down; at the end of the day, we’ll all swim in the same troubled waters.”
Referring to a prior 2012 plan to introduce a N5,000 note under the then-government, Onyeka warned that history could repeat itself.
“They said it was unnecessary and would destroy the economy,” he noted.
“Yet here we are again discussing higher-value currency notes that do nothing to strengthen the naira.”
Analysts Weigh the Risks and Alternatives
While some analysts acknowledge potential operational benefits to issuing higher denominations — such as reducing the volume of notes in circulation and lowering cash-handling costs for banks and the CBN — the consensus among business and labour leaders is that the timing and context are deeply flawed.
Dr Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise (CPPE), said the concept of higher-value currency notes had merits in theory but carried significant risks.
He suggested a more moderate approach, such as introducing a N5,000 note instead of jumping to N10,000 or N20,000 denominations.
“A moderate increase like introducing a N5,000 note might be a balanced solution,” Dr Yusuf said.
“It would address the current inadequacy without excessively increasing risks or reversing cash-less gains.”
He cautioned that higher-value currency notes could exacerbate counterfeiting, increase money laundering and encourage more cash-based transactions, exactly the opposite of Nigeria’s stated objective of digital financial inclusion.
The Broader Economic Context for Higher-Value Currency Notes
Nigeria’s economy is coping with high inflation, currency depreciation and a policy environment that emphasises digital payments and reduced reliance on cash.
In this setting, the introduction of higher-value currency notes is seen by many observers as a symbolic move, reflecting deeper macroeconomic woes rather than a genuine solution.
The Quartus Economics report argues that the N1,000 note has lost much of its purchasing power and so larger notes are needed.
But critics say issuing higher-value currency notes sends the wrong signal — that the naira is too weak and that inflation is entrenched.
For business operators, especially small and medium enterprises (SMEs), the focus must be on boosting production, stabilising prices and improving purchasing power, not printing bigger bills.
As one labour leader noted: “If the goal is to ease transactions or fight inflation, there are better ways — strengthen production, stabilise prices, improve purchasing power.
Printing higher denominations won’t stop the naira from falling; it only confirms that the economy is sinking deeper.”
What Happens Next with the Higher-Value Currency Notes Proposal?
At the time of writing, the Central Bank of Nigeria had not publicly responded to calls for or against the introduction of higher-value currency notes.
But given the unified objection from both OPS and labour, the policy faces a steep public relations and implementation hurdle.
If higher-value currency notes are pushed forward without broader stakeholder engagement and clear economic rationale, experts warn the move could undermine confidence in the currency and reverse gains made through digital transaction reforms.
According to critics, such a policy could favour the wealthy, deter digital adoption, heighten inflationary expectations and cripple small businesses further.
The OPS, representing the private sector umbrella groups, and the NLC, representing labour, are now awaiting a deeper consultation process.
They argue the focus should instead be on monetary stability, productivity growth, deepening financial inclusion, and strengthening the naira — rather than issuing higher-value currency notes that may fix nothing but create fresh problems.
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