Open letter to Tinubu: auspicious time for N5000, N2000 notes to come into being, Kola Amzat

Open letter to Tinubu: auspicious time for N5000, N2000 notes to come into being 

Your Excellency, 

This is my third letter to Your Excellency on pressing national issues within the last 6 months and I hope it meets you well, Sir.

In a couple of weeks from now, the country will commence running an Appropriation Bill of ₦54.2 trillion, after the Bill might have been approved by the national assembly, and Your Excellency’s assent also imprinted. 

Besides the fact that the budget almost double that of the immediate past year (2024) of ₦28.78 trillion, the Appropriation Bill remains the boldest fiscal initiative the country has ever taken. 

With the quantum of liquidity that the nation economy would be experiencing on account of the AUDACIOUS budget, it’s crystal clear that the existing naira notes denomination with the highest at ₦1000 would no longer provide necessary support for economy. 

If we continue with this arrangement, the country would be disregarding the basic law of economics that emphasizes that a country currency basically reflects her strength.

Equally, about 48 hours ago, there’s cheering news from capital market that market capitalization crossed ₦67 trillion. This is a tremendous leap when compared to just one or two years ago when market capitalization was always oscillating between ₦15 -₦16 trillion mark, a stunning percentage growth of about 320%. 

Sir, could the nation still maintain the existing arrangement of ₦1000 highest naira note denomination without creating disequilibrium and imbalance between the quantum of money supply in the economy and currency denomination?   

Your Excellency, owing to the on-going reforms in the oil sector, it’s already in the public domain that petroleum products prices are in the range of 375-400 percentage increase, with PMS jumping from about ₦180-₦190/litre to current price of about ₦900/litre, with diesel also moving from ₦320-₦350/litre to the current price level of ₦1250-₦1400/litre.  There exists no doubt that the nation can no longer operate with ₦1000 remaining the highest denomination, as it doesn’t sufficiently reflect the country position. 

Sir, on account of reforms in the exchange rate market, with floatation of the nation currency, the rate of naira to dollar jumped up from about ₦411 in year 2022 to about ₦1500 in February 2025, representing percentage increase of about 265% increase. 

Your Excellency, against the backdrop of the above reality and statistics, continual maintaining the existing arrangement of ₦1000 denomination note as highest would obviously be injurious and inimical to the economy. 

Cement price goes for average of about ₦8,000 in February 2025, a huge leap from about ₦3,200-₦3500, an increase of about 130%.

Astronomical increase has also been recorded on all other building materials-sands, gravels, blocks, steel reinforcement, timber, paints & finishing, with some hitting 250% and others go as much as 300%, yet, the currency highest denomination remains at ₦1,000.

Barely 48 hours ago, Central Bank of Nigeria (CBN) rolled out new charges on ATM withdrawals with ₦100 per ₦20,000 withdrawal at on-site ATMs and an additional surcharge of up to ₦500 per ₦20,000 at off-site ATMs. This directive takes effect from March 01.   

The Apex Bank would start generating incredible funds all across the country from this directive alone, a development that would ultimately REFLATE the economy and make mincemeat of the ₦1,000 note as highest denomination. 

It’s also instructive that tariffs and general increase of 50% on Telecoms services is already on. The multiplier effect of quantum of funds that would find its way into the economy is better imagined, particularly with a massive population of about 230-250 million Nigerians, with 70-80% of romancing and eternally attach to telecoms services on hourly basis. 

Your Excellency, with the above, it’s no brainer that we can’t afford to continue with ₦1,000 as the nation higher naira notes denomination.

Sir, there is consistent increases in prices of staple foods-rice, bread, semovita, semolina, yams, yeast etc. In recent times, the prices of food items have totally made ₦1,000 as highest nation note very illogical, as some of the food prices have gone up as higher as 200-300%, making the currency to completely water down.  

Finally, ₦50 and ₦100 notes have been very scarce in circulation, an indication that even, the economy itself is technically responding by sending them into extinction. 

Your Excellency, less discerning minds may disagree with my submissions on the need to roll out ₦2,000 and ₦5,000 naira notes denomination with a view to creating balancing and equilibrium. They may be anchoring their criticisms on the potential inflationary rate that the proposed submission may bring to the economy.

They may even liken it to devaluation of the nation currency.  This is never the intention. This is never the aims and objectives of creating higher notes denomination. 

The crux of the matter remains that, their argument may be valid within the context of the basic economics theory, but, it’s instructive that the nation will not continue to sacrifice the stability, equilibrium and balance of quantum of fund in the economy and appropriate currency denomination for an inflationary rate challenge that do not hold water, at least in this present circumstance.    

Kola AMZAT (FCA, FCIB, ACS, ACTIN, MBA)

Lagos based Financial & Management Consultants, 

09077509348