Nigerian naira

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For the village in India, see Naira, Srikakulam.
Nigerian naira
ISO 4217 code NGN
Central bank Central Bank of Nigeria
 Website www.cenbank.org
User(s)  Nigeria
Inflation 12.1%
 Source [1], 2012 est.
Subunit
 1/100 kobo
Symbol
Plural naira
 kobo kobo
Coins 50 kobo, 1 & 2 naira
Banknotes 5, 10, 20, 50, 100, 200, 500 & 1000 naira
Printer Nigerian Security Printing and Minting Company Limited
 Website www.mintnigeria.com
Mint Nigerian Security Printing and Minting Company Limited
 Website www.mintnigeria.com

The naira (sign: ; code: NGN) is the currency of Nigeria. It is subdivided into 100 kobo.

The Central Bank of Nigeria (CBN) is the sole issuer of legal tender money throughout the Nigerian Federation. It controls the volume of money supply in the economy in order to ensure monetary and price stability. The Currency & Branch Operations Department of the CBN is in charge of currency management, through the procurement, distribution/supply, processing, reissue and disposal/disintegration of bank notes and coins.

History[edit]

The naira was introduced on 1 January 1973, replacing the pound at a rate of 2 naira = 1 pound.[1] This made Nigeria the last country to abandon the £sd currency system. There was a plan to redenominate the naira at 1 new naira = 100 old naira in 2008, but the plan has been suspended. The currency sign is U+20A6 naira sign.

Rampant inflation has occurred in Nigeria over the existence of naira. The Central Bank of Nigeria claimed that they attempted to control the annual inflation rate below 10%. In 2011, CBN increased key interest rate for 6 times, rising from 6.25% to 12%. On 31 January 2012, CBN decided to maintain the key interest rate at 12%, in order to reduce the impact of inflation due to reduction in fuel subsidies.[2]

Coins[edit]

In 1973, coins were introduced in denominations of ½, 1, 5, 10 and 25 kobo, with the ½ and 1 kobo in bronze and the higher denomnations in cupro-nickel. The ½ kobo coins were only minted that year. In 1991, smaller 1, 10 and 25 kobo coins were issued in copper-plated-steel, along with nickel-plated-steel 50 kobo and 1 naira. On 28 February 2007, new coins were issued in denominations of 50 kobo, 1 and 2 naira, with the 1 and 2 naira bimetallic. Some Nigerians expressed concerns over the usability of the ₦2 coin.[3] The deadline for exchanging the old currency was set at 31 May 2007.[4] The central bank stated that the ½ to 25 kobo coins were withdrawn from circulation with effect from 28 February 2007.

Banknotes[edit]

On January 1, 1973, the Central Bank of Nigeria introduced notes for 50 kobo, 1, 5, 10 and 20 naira. The 50 kobo notes were last issued in 1989. In 1991, 50 naira notes were issued, followed by 100 naira in 1999, 200 naira in 2000, 500 naira in 2001 and 1000 naira on October 12, 2005.

On February 28, 2007, new versions of the 5 to 50 naira banknotes were introduced. Originally the 10, 20 and 50 naira were to be polymer banknotes,[6] but the 5,10 and 50 were delayed to late 2009 and only the 20 was released in polymer. The notes are slightly smaller (130 x 23 mm) and redesigned from the preceding issues. In mid-2009 when Sanusi Lamido Sanusi took over as CBN Governor he eventually changed the 5, 10 and 50 naira to polymer notes.

On the 1000 naira notes, there is a subtle shiny strip running down the back of the note. It is a shimmery gold colour showing 1000 naira. The triangular shape in the middle of the front of the note changes its colour from green to blue when tilted. The main feature on the front is the engraved portraits of Alhaji Aliyu Mai-Bornu and Dr Clement Isong, former governors of the Central Bank of Nigeria.

On the first prints of the 100 naira notes issued starting December 1, 1999, Zuma Rock was captioned as located in Federal Capital Territory, while actually it is situated in Niger State. Later prints removed the reference to FCT, ABUJA.[7]

2012 the Central Bank of Nigeria may be contemplating the introduction of new currency denominations of N5,000. The bank has also made plans to convert ₦5, ₦10, ₦20 and ₦50 into coins which are all presently notes.[8]

The Central Bank of Nigeria has announced that it will no longer issue banknotes on polymer citing higher costs and environmental issues.[9][10][11]

Currently Circulating Banknotes [2]
1999–2005 Series
Image Value Dimensions Main Colour Description Date of
Obverse Reverse Obverse Reverse Watermark first printing issue
[3] ₦100 151 × 78 mm Red and multicolour Chief Obafemi Awolowo Zuma Rock As portrait(s), "CBN", value 1999 1 December 1999
[4] ₦200 Blue and multicolour Sir Ahmadu Bello Pyramid of agricultural commodity and livestock farming 2000 1 November 2000
[5] ₦500 Purple and multicolour Dr. Nnamdi Azikiwe Off-shore oil-rig 2001 4 April 2001
[6] ₦1000 Purple Alhaji Aliyu Mai-Bornu, Dr. Clement Isong CBN's corporate headquarters in Abuja 2005 12 October 2005
2006 Series (Paper and Polymer banknotes)
[7] ₦5 130 × 72 mm Mauve Alhaji Abubakar Tafawa Balewa Nkpokiti dancers Central Bank of Nigeria logo, "CBN" 2006 28 February 2007
[8] ₦10 Red Mr. Alvan Ikoku Fulani milk maids
[9] ₦20 Green General Murtala Mohammed Ladi Kwali
[10] ₦50 Blue Hausa, Igbo and Yoruba men and a woman Local fishermen

Second naira[edit]

The naira was scheduled for redenomination in August 2008, although this was cancelled by then-President Umaru Musa Yar'Adua[12]), with 100 old naira to become 1 new naira. The Nigerian Central Bank stated that it will make the naira fully convertible against foreign currencies by 2009. Currently, the amount of foreign currency is regulated through weekly auctions, while the Central Bank sets the exchange rate. The naira appreciated against the dollar through 2007 due to high oil revenues. Also, the then-Bank Governor, Professor Chukwuma Soludo noted the weekly central bank auctions of foreign currency will gradually be phased out, and that the bank would "only intervene in the market as may be required to achieve defined policy objectives".[13]

Coins[edit]

Coins were to be issued in denominations of:

  • 1 Kobo (₦0.01)
  • 2 Kobo (₦0.02)
  • 5 Kobo (₦0.05)
  • 10 Kobo (₦0.10)
  • 20 Kobo (₦0.20)

Banknotes[edit]

Banknotes were to be printed in denominations of:

  • 50 Kobo (₦0.50)
  • 1 Naira (₦1)
  • 5 Naira (₦5)
  • 10 Naira (₦10)
  • 20 Naira (₦20)
  • 50 naira (₦50)
  • 100 naira (₦100)
  • 200 naira (₦200)
  • 500 naira (₦500)
  • 1000 naira (₦1000)
    • 50 kobo & 1 naira—phased out

Exchange rates[edit]

This table shows the historical value of one U.S. Dollar in Nigerian naira - PM = Parallel Market.[citation needed]

Date Naira per US $ Date Naira per US $
1972 0.658 1993 17.30 (21.90 PM)
1973 0.658 1994 22.33 (56.80 PM)
1974 0.63 1995 21.89 (71.70 PM)
1975 0.616 1996 21.89 (84.58 PM)
1976 0.62 1997 21.89 (84.58 PM)
1977 0.647 1998 21.89 (84.70 PM)
1978 0.606 1999 21.89 (88-90 PM)
1979 0.596 2000 85.98 (105.00 PM)
1980 0.550 (0.900 PM) 2001 99-106 (104-122 PM)
1981 0.61 2002 109-113 (122-140 PM)
1982 0.673 2003 114-127 (135-137 PM)
1983 0.724 2004 127-130 (137-144 PM)
1984 0.765 2005 132-136
1985 0.894 (1.70 PM) 2006 128.50-131.80
1986 2.02 (3.90 PM) 2007 120-125
1987 4.02 (5.90 PM) 2008 115.50-120
1988 4.54 (6.70 PM) 2009 145-171
1989 7.39 (10.70 PM) 2010 148.21-154.8
1990 7.39 (10.70 PM) 2011 151.05-165.1
1991 8.04 (9.30 PM) 2012 155.09-161.5
1992 9.91 2013 153.21-162.9
Current NGN exchange rates
From Google Finance: AUD CAD CHF EUR GBP HKD JPY USD INR CNY
From Yahoo! Finance: AUD CAD CHF EUR GBP HKD JPY USD INR CNY
From XE.com: AUD CAD CHF EUR GBP HKD JPY USD INR CNY
From OANDA.com: AUD CAD CHF EUR GBP HKD JPY USD INR CNY
From fxtop.com: AUD CAD CHF EUR GBP HKD JPY USD INR CNY


See also[edit]

References[edit]

  1. ^ Nigerian Central Bank. Available at: http://www.cenbank.org/Currency/historycur.asp
  2. ^ "Nigeria leaves key rate at 12 pct as expected", Reuters,31 January 2012
  3. ^ "Nigeria: Nigeria's New Notes And Coins". This Day. 2007-02-21. Retrieved 2007-02-26. 
  4. ^ "Nigeria: New Currency - Two Per Cent of Withdrawals to Be in Coins - CBN". Vanguard. 2007-02-21. Retrieved 2007-02-26. 
  5. ^ Central Bank of Nigeria. "Old Coins - 1973 Coins". Archived from the original on 2006-01-17. Retrieved 2007-02-26. 
  6. ^ "CBN warns against fixing prices in foreign currency *To launch new notes Feb 2007". Vanguard Nigeria. 2006-11-06. Retrieved 2007-02-26. [dead link]
  7. ^ BBC - Glaring error (on 100 Naira note)
  8. ^ CBN To Introduce N5000, N2000 Notes; N50, N20, N10 Coins
  9. ^ Nigeria to abandon polymer banknotes BanknoteNews.com. September 13, 2012. Retrieved on 2012-11-09.
  10. ^ CBN Clarifies Decision to Abandon Polymer Banknotes AllAfrica (allafrica.com) September 12, 2012. Retrieved on 2012-11-09.
  11. ^ Plan to Phase-out Polymer Banknotes Stirs New Controversy This Day Live (www.thisdaylive.com). April 24, 2013. Retrieved on 2013-04-25.
  12. ^ http://www.cenbank.org/out/publications/pressrelease/gov/2007/pr27-8-07.pdf
  13. ^ "Nigeria set to free its currency", BBC News, 14 August 2007

External links[edit]