The Organised Private Sector and the Nigeria Labour Congress have dismissed calls for the introduction of higher-value currency notes, warning that such a move would worsen inflation, undermine the Central Bank’s cashless policy, and further erode the naira’s value.

Their reaction followed a report by Quartus Economics, which urged the Central Bank of Nigeria to introduce ₦10,000 and ₦20,000 notes to “restore the naira’s portability” and reduce cash handling costs. The report, titled “Is Africa’s Eagle Stuck or Soaring Back to Life?”, argued that Nigeria’s ₦1,000 note currently the highest denomination has become “practically obsolete in terms of purchasing power.”

However, key business and labour groups described the suggestion as “elitist, ill-timed, and economically risky.”

The National Vice President of the Nigerian Association of Small-Scale Industrialists, Segun Kuti-George, said the idea would favour the wealthy while hurting low-income earners.

“Such a policy could worsen inflationary pressures. The mere consideration of these denominations reflects underlying inflation, and their introduction would likely escalate it further,” he said. “If at all necessary, a ₦2,000 note could suffice, but anything beyond that is impractical and economically unsound for Nigeria’s current realities.”

Kuti-George added that the proposal would make it easier for the rich to hoard large sums of cash and reverse progress made in promoting digital payments.

Similarly, the Director-General of the Nigerian Association of Small and Medium Enterprises, Eke Ubiji, described the proposal as “a very bogus thought,” warning that it could deepen the country’s economic crisis.

“Our economy is already fragile due to policies like fuel subsidy removal,” he said. “Printing higher-value notes won’t reduce inflation; it will only compound the crisis.”

President of the Association of Small Business Owners of Nigeria, Dr. Femi Egbesola, said the move would derail Nigeria’s transition to a cashless economy.

“Globally, economies are pushing for digital payment systems,” he said. “Printing higher bills drives inflation and contradicts the push for financial inclusion.”

Egbesola urged the CBN to focus on strengthening the naira’s value instead of printing larger denominations. “Our goal should be improving purchasing power, not printing higher bills to mask economic weakness,” he added.

On his part, the Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Dr. Muda Yusuf, acknowledged that the proposal could reduce cash management costs but warned it would also encourage hoarding and counterfeiting.

“A moderate approach like introducing a ₦5,000 note could strike a balance between efficiency and prudence,” Yusuf suggested.

The Nigeria Labour Congress also condemned the idea as a “recycled economic mistake” that would not address Nigeria’s core challenges.

NLC Assistant Secretary-General, Chris Onyeka, said, “Printing ₦10,000 and ₦20,000 notes won’t strengthen the naira or fight inflation. If the goal is to ease transactions, the focus should be on stabilising production, strengthening purchasing power, and improving governance.”

He recalled that a similar plan under former President Goodluck Jonathan in 2012 to introduce a ₦5,000 note was shelved following public backlash. “The same people who criticised it then are the ones pushing it now,” Onyeka noted.

Analysts at Quartus Economics had argued that had the ₦5,000 note been introduced in 2012, it would now be equivalent to about ₦50,000 in value, reflecting a 94 per cent drop in the naira’s purchasing power over the past two decades.

Despite that analysis, industry leaders insist that introducing ₦10,000 or ₦20,000 notes would be “a step backwards,” aggravating inflation, encouraging cash hoarding, and eroding confidence in Nigeria’s monetary system.

The Central Bank of Nigeria has yet to comment on the proposal as of press time.