OPS, NLC Reject Plans for ₦10,000, ₦20,000 Banknotes, Warn of Inflation and Policy Reversal

The Organised Private Sector (OPS) and the Nigeria Labour Congress (NLC) have rejected calls for the introduction of ₦10,000 and ₦20,000 currency notes, cautioning that such a move would worsen inflation, weaken the naira further, and reverse gains achieved under the nation’s cashless policy.

Their reactions came after Quartus Economics, a policy think tank, released a report urging the Central Bank of Nigeria (CBN) to issue higher-value denominations to restore the naira’s portability and reduce cash handling costs. The report, titled “Is Africa’s Eagle Stuck or Soaring Back to Life?”, claimed that the ₦1,000 note had lost its real purchasing power.

Business and labour leaders, however, dismissed the idea as ill-conceived and economically risky.

Segun Kuti-George, National Vice President of the Nigerian Association of Small-Scale Industrialists (NASSI), argued that introducing higher denominations would only serve the wealthy while contradicting the government’s digital payment goals.

He said, “This policy will intensify inflationary pressures. The mere discussion of ₦10,000 or ₦20,000 notes reflects deep inflation, and introducing them will make things worse. At most, ₦2,000 would suffice, but anything higher is unnecessary and impractical.”

Kuti-George added that the proposal would enable the elite to hoard cash easily, undermining financial transparency. “When the government is encouraging digital transactions, printing bigger notes would take us backward,” he warned.

In agreement, Eke Ubiji, Director-General of the Nigerian Association of Small and Medium Enterprises (NASME), described the idea as “a reckless economic gamble.” He noted that small businesses already struggle under weak purchasing power and inflation, saying, “Introducing higher-value notes will not reduce inflation. It will only worsen the crisis.”

The President of the Association of Small Business Owners of Nigeria, Dr. Femi Egbesola, called the move counterproductive, warning that it would derail Nigeria’s shift toward a cashless economy.

He said, “Globally, economies are encouraging digital transactions and reducing cash dependence. Printing higher notes will only drive inflation and make cash hoarding easier.”

Egbesola urged the CBN to focus on strengthening the naira’s value and improving digital financial inclusion, not printing higher denominations.

Meanwhile, Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise (CPPE), acknowledged that higher-value notes might reduce cash management costs but warned of greater risks.

“Introducing ₦10,000 or ₦20,000 notes could increase counterfeiting and reverse progress on the cashless policy,” he said. “If necessary, a moderate option like ₦5,000 would be a safer balance.”

The Nigeria Labour Congress (NLC) also condemned the proposal, calling it a recycled economic blunder.

NLC Assistant Secretary-General Chris Onyeka said it would not strengthen the naira or ease inflation. “We’ve seen this kind of move before. Printing higher denominations doesn’t solve inflation—it’s proof that the economy is sinking deeper,” he said.

Onyeka recalled that a similar plan under former President Goodluck Jonathan in 2012—to introduce a ₦5,000 note—was abandoned after widespread public criticism.

Quartus Economics, however, argued that had the ₦5,000 note been issued then, it would now be worth ₦50,000 in real value, reflecting a 94 percent fall in the naira’s purchasing power.

Despite that claim, both labour and private sector groups insist that introducing ₦10,000 and ₦20,000 notes would be a step backward, fuelling inflation and eroding confidence in the currency rather than strengthening it.