CBN’s Rumoured Plan to Introduce ₦10,000 and ₦20,000 Notes Sparks Outrage — Experts Warn of Inflation Risks
By Queen Madaki | The Bureau News
ABUJA — Nigeria News Today: A report by a little-known research group, Quantus Economics, has set off a nationwide debate after it claimed that the Central Bank of Nigeria (CBN) was considering introducing higher currency denominations — ₦10,000 and ₦20,000 notes — to cut printing costs and ease cash transactions.
Before this revelation, few Nigerians had ever heard of Quantus Economics. Yet, within days, the report dominated headlines, sparking strong reactions from economists, labour unions, and the organised private sector, all warning that such a policy could worsen inflation and fuel corruption.
Public Backlash Over ‘Elitist’ Proposal
Quantus Economics had argued that the introduction of higher notes would make transactions easier and reduce the cost of printing lower denominations that have lost purchasing power. However, the Nigeria Labour Congress (NLC) and the Organised Private Sector (OPS) have firmly rejected the idea, describing it as “elitist” and “anti-people.”
They argue that a worker on the new minimum wage of ₦70,000 would effectively receive just three ₦20,000 notes and one ₦10,000 note — a situation they say underscores how detached policymakers are from the realities of ordinary citizens.
“This policy benefits only the wealthy who move large cash amounts,” one labour leader said. “It’s completely unnecessary in a cashless economy.”
Analysts Warn of Inflation and Corruption
Economic analysts have warned that introducing ₦10,000 and ₦20,000 notes would have a direct inflationary effect by psychologically devaluing the Naira and encouraging price hikes.
“Such high denominations will worsen inflation; it should be a no-go area for the government,” said one economist familiar with the proposal.
Experts also warned that corruption could spike. With higher-value notes in circulation, illicit payments and bribery could become easier to conceal — undermining the efforts of the Independent Corrupt Practices Commission (ICPC) and the Economic and Financial Crimes Commission (EFCC).
Contradiction to Cashless Policy
Critics have pointed out that the rumoured policy contradicts Nigeria’s cashless economy policy launched in December 2011 under former President Goodluck Jonathan, which aims to reduce dependence on physical cash and promote digital transactions.
Today, digital payments dominate Nigeria’s formal and informal sectors. From petrol stations and supermarkets to wholesale traders and small-scale retailers, millions of Nigerians now rely on mobile transfers and Point-of-Sale (POS) systems.
“The CBN should be improving digital infrastructure, not returning us to the era of cash-filled briefcases,” said a finance expert quoted by Punch newspaper.
Security and Governance Concerns
Observers warn that reintroducing high-value notes could roll back progress made in curbing armed robbery and cash-related crimes. Since the rise of digital payments, incidents of armed robbery and burglary have reportedly declined in many urban areas.
“If you make it easier to move millions in physical cash, you’re making it easier to move proceeds of crime,” an anti-corruption advocate told Reuters Africa.
For now, the CBN has not issued an official statement on the matter. But as Nigerians react strongly against the idea, the message to policymakers is clear — the focus should remain on stabilizing the Naira, fighting inflation, and deepening digital financial inclusion, not printing larger notes that could worsen the economic crisis.
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