By Nchetachi Chukuwajah
The news of a new economic review by Quartus Economics urging the Central Bank of Nigeria (CBN) to introduce higher-value currency notes such as N10,000 and N20,000 bills has been met with condemnation from Nigerians.
Across various social media platforms, Nigerians say the policy would further hurt the economy, spike inflation, and further devalue the naira.
The report, entitled ‘Is Africa’s Eagle Stuck or Soaring Back to Life?’ said the introduction of higher naira denominations would restore the naira’s portability and reduce the rising cost of cash transactions.
It warned that the naira’s continued depreciation had rendered the N1,000 note, Nigeria’s highest denomination, practically useless in terms of purchasing power.
“To make the naira portable again, Nigeria can introduce higher-value bills, e.g., N10,000 or N20,000 notes, or redenominate the currency entirely,” the report stated.
The firm said a single N5,000 note that would have been introduced in 2012 would now be equivalent to a single N50,000 note today, which shows a 94 per cent decline in the naira’s real value over the last two decades.
According to the analysts, the notion that introducing higher-value notes could worsen inflation was a “myth unsupported by evidence.”
It said, “Inflation is cost-push or demand-pull. Neither is related to currency denomination. Instead, countries introduce higher notes to maintain portability after an era of currency depreciation.
“Countries introduce higher-value notes to maintain portability after a period of significant currency depreciation, not to trigger inflation,” the report clarified.
Despite the gains the report said the proposed policy holds, Nigerians were unanimous in their condemnation of the policy, citing countries with higher currency denominations, they said it spells doom for Nigeria’s already fragile economy.
Others also questioned the authenticity of the economic firm, noting that the full copy of the report, the name of the team of analysts and researchers, contents, and customisation, among others, were missing from the firm’s website.
A part of a tweet by @DavidHundeyin read, “This is the ‘Quartus Economics’ that the whole of Nigerian media has started quoting out of nowhere, like it’s the word of a credible institution. Its website is a cheap template website that hasn’t been customised or filled with content yet.
“An organisation with a cheap one-page website filled with placeholder text is making recommendations about national monetary policy. And major Nigerian dailies are feverishly quoting its unseen report, which is definitely not because there is someone in the background spending millions of Naira to influence and nudge national conversation.
@UsulorIsraelM added, “I have searched everywhere for information about Quartus Economics, the body recommending that we should have N10k and N20k notes. I can’t seem to find anything.
“For instance, if PwC, Deloitte, KPMG or Ernst & Young issue an economic report, I can easily find it on their website. I can know the names of the economists who did the research and wrote the report. And find the entire paper on their website. But I can’t find the Quartus Economics website. Please, who can show me? I want to read the whole report, not media snippets.”
On the impact of the proposed policy on the value of the naira, @Mrbankstips said, “Issuing N10k & N20k notes is a silent confession that the naira has lost massive value and it makes our money worth less, not worth more. Prices will rise, goods will feel costlier and your N1,000 will buy what N100 once did. Bigger note, smaller purchasing power.”
@GbolahanAkinwum wrote, “Rather than introducing higher denomination currency notes, such as N10,000 & N20,000 bills, it would be more prudent for the @cenbank to limit the circulation of the N500 & N1,000 notes, thereby promoting the cashless policy, enhancing electronic transactions.”
Also, @itsCletuss_ tweeted, “Introducing N10,000 and N20,000 notes won’t fix Nigeria’s real problems; it would simply make carrying large sums easier and open a bigger loophole for corruption.”
@pinkpearl_b said, “CBN wants to print higher notes instead of fixing inflation. That’s like changing your bed sheet when the house is on fire. They’ll print N20,000 notes, and by 2026 it’ll only buy you one plate of rice and pure water. N10k note loading is like “premium paper weight.”
@mobytoolz tweeted, “The inflation we think we have now will be nothing compared to what is to come.
@NemeremNjoku added, “Check every country with higher numbers on their currencies, they’re of no value.”
