|ISO 4217 code||NGN|
|Central bank||Central Bank of Nigeria|
|Source||, 2012 est.|
|Coins||50 kobo, 1 & 2 naira|
|Banknotes||5, 10, 20, 50, 100, 200, 500 & 1000 naira|
|Printer||Nigerian Security Printing and Minting Company Limited|
|Mint||Nigerian Security Printing and Minting Company Limited|
The Central Bank of Nigeria (CBN) is the sole issuer of legal tender money throughout the 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.
The naira was introduced on 1 January 1973, replacing the pound at a rate of 2 naira = 1 pound. 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.
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 N2 coin. The deadline for exchanging the old currency was set at 31 May 2007. The central bank stated that the ½ to 25 kobo coins were withdrawn from circulation with effect from 28 February 2007.
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, 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.
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 N5, N10, N20 and N50 into coins which are all presently notes.
The naira was scheduled for redenomination in August 2008, although this was cancelled by then-President Umaru Musa Yar'Adua), 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".
Coins were to be issued in denominations of:
- 1 Kobo (N 0.01)
- 2 Kobo (N 0.02)
- 5 Kobo (N 0.05)
- 10 Kobo (N 0.10)
- 20 Kobo (N0.20)
Banknotes were to be printed in denominations of:
- 50 Kobo (N 0.50)
- 1 Naira (N1.00)
- 5 Naira (N5.00)
- 10 Naira (N10.00)
- 20 Naira (N20.00)
50 naira 100 naira 200 naira 500 naira 1000 naira
- 50 kobo & 1 naira -- phased out
Exchange rate history
This table shows the historical value of one U.S. Dollar in Nigerian naira - PM = Parallel Market.
|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)|
|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|
|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|
|Currently Circulating Banknotes |
|Image||Value||Dimensions||Main Colour||Description||Date of|
|||₦100||151 × 78 mm||Red and multicolour||Chief Obafemi Awolowo||Zuma Rock||As portrait(s), "CBN", value||1999||1 December 1999|
|||₦200||Blue and multicolour||Sir Ahmadu Bello||Pyramid of agricultural commodity and livestock farming||2000||1 November 2000|
|||₦500||Purple and multicolour||Dr. Nnamdi Azikiwe||Off-shore oil-rig||2001||4 April 2001|
|||₦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)|
|||₦5||130 × 72 mm||Mauve||Alhaji Abubakar Tafawa Balewa||Nkpokiti dancers||Central Bank of Nigeria logo, "CBN"||2006||28 February 2007|
|||₦10||Red||Mr. Alvan Ikoku||Fulani milk maids|
|||₦20||Green||General Murtala Mohammed||Ladi Kwali|
|||₦50||Blue||Hausa, Igbo and Yoruba men and a woman||Local fishermen|
|These images are to scale at 0.7 pixels per millimeter.|
- Linzmayer, Owen (2012). "Nigeria". The Banknote Book. San Francisco, CA: www.BanknoteNews.com.
- "Nigeria leaves key rate at 12 pct as expected", Reuters,31 January 2012
- "Nigeria: Nigeria's New Notes And Coins". This Day. 2007-02-21. Retrieved 2007-02-26.
- "Nigeria: New Currency - Two Per Cent of Withdrawals to Be in Coins - CBN". Vanguard. 2007-02-21. Retrieved 2007-02-26.
- Central Bank of Nigeria. "Old Coins - 1973 Coins". Archived from the original on 2006-01-17. Retrieved 2007-02-26.
- "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]
- BBC - Glaring error (on 100 Naira note)
- CBN To Introduce N5000, N2000 Notes; N50, N20, N10 Coins
- Nigeria to abandon polymer banknotes BanknoteNews.com. September 13, 2012. Retrieved on 2012-11-09.
- CBN Clarifies Decision to Abandon Polymer Banknotes AllAfrica (allafrica.com) September 12, 2012. Retrieved on 2012-11-09.
- Plan to Phase-out Polymer Banknotes Stirs New Controversy This Day Live (www.thisdaylive.com). April 24, 2013. Retrieved on 2013-04-25.
- "Nigeria set to free its currency", BBC News, 14 August 2007
- Interview with Sanusi Lamido Sanusi, Governor of the federal Bank of Nigeria, on the Australian Broadcasting Corporation's Four Corners television program on the scandal involving the transfer from paper to polymer currency in Nigeria