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Nigerian naira

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"Naira" redirects here. For the village in India, see Naira, Srikakulam. For the digital currency eNaira, see eNaira. For the name, see Naira (given name).

Nigerian naira
ISO 4217
CodeNGN (numeric: 566)
Subunit0.01
Unit
Pluralnaira
Symbol₦‎
Denominations
Subunit
 1⁄100kobo
Plural
 kobokobo
Banknotes₦5, ₦10, ₦20, ₦50, ₦100, ₦200, ₦500, ₦1000
Coins50 kobo, ₦1, ₦2
Demographics
User(s) Nigeria
Issuance
Central bankCentral Bank of Nigeria
 Websitewww.cenbank.org
PrinterNigerian Security Printing and Minting Company Limited
 Websitewww.mintnigeria.com
MintNigerian Security Printing and Minting Company Limited
 Websitewww.mintnigeria.com
Valuation
Inflation21.1%[1]
 Source2022

The naira (sign: ₦; code: NGN) is the currency of Nigeria. One naira is divided into 100 kobo.

The Central Bank of Nigeria (CBN) is the sole issuer of legal tender money throughout the Federal Republic of Nigeria.[2] It controls the volume of money supplied in the economy in order to ensure monetary and price stability. The Currency Operations Department of the CBN is in charge of currency management, through the designs, procurement, distribution and supply, processing, reissue and disposal or disintegration of bank notes and coins.

History

The naira was introduced on 1 January 1973, replacing the Nigerian pound at a rate of £1 = ₦2 naira.[3] The coins of the new currency were the first coins issued by an independent Nigeria, as all circulating coins of the Nigerian pound were all struck by the colonial government of the Federation of Nigeria in 1959, with the name of Queen Elizabeth II on the obverse. This also made Nigeria the last country in the world to abandon the £sd currency system in favour of a decimal currency system. There was a government plan to redenominate the naira at 100:1 in 2008, but the plan was suspended. The currency sign is U+20A6 ₦ NAIRA SIGN.

The name "Naira" was coined from the word "Nigeria" by Obafemi Awolowo.[4][5] However, Naira as a currency was launched by Shehu Shagari as minister of finance in 1973.

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

As of 20 June 2016, the naira was allowed to float, after being pegged at ₦197 to US$1 for several months. Trades speculated the natural range of the naira would be between ₦280 and ₦350 to the dollar.[7]

In October 2021, the eNaira, the digital version of the state currency, is officially launched in Nigeria.

Coins

In 1973, coins were introduced in denominations of 1⁄2, 1, 5, 10 and 25 kobo, with the 1⁄2 and 1 kobo in bronze and the higher denominations in cupro-nickel. The 1⁄2 kobo coins were minted only 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. On 28 February 2007, new coins were issued in denominations of 50 kobo, ₦1 and ₦2, with the ₦1 and ₦2 bimetallic. Some Nigerians expressed concerns over the usability of the ₦2 coin.[8] The deadline for exchanging the old currency was set at 31 May 2007.[9] The central bank stated that the 1⁄2 to 25 kobo coins were withdrawn from circulation with effect from 28 February 2007.

Banknotes

Old Nigerian currency

On 1 January 1973, the Central Bank of Nigeria introduced notes for 50 kobo, ₦1, ₦5, ₦10 and ₦20: in April 1984, the colors of all naira banknotes were changed in an attempt to control money laundering.[4] In 1991, ₦50 notes were issued, while the 50 kobo and ₦1 notes were replaced by coins in 1991. This was followed by ₦100 in 1999, ₦200 in 2000, ₦500 in 2001 and ₦1,000 on October 12, 2005.

On 28 February 2007, new versions of the ₦5 to ₦50 banknotes were introduced. Originally the ₦10, ₦20 and ₦50 were to be polymer banknotes,[17] 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 × 72 mm) and redesigned from the preceding issues. In mid-2009 when Sanusi Lamido Sanusi took over as CBN Governor, The Central Bank of Nigeria changed the ₦5, ₦10 and ₦50 to polymer notes.

On the ₦1,000 notes, there is a subtle shiny strip running down the back of the note to prevent counterfeiting. The strip is a shimmery gold color showing ₦1,000, and has a triangular shape in the middle of the front of the note which changes its color 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, both of which are former governors of the Central Bank of Nigeria.

On the first prints of the ₦100 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.[18]

In 2012 the Central Bank of Nigeria was contemplating the introduction of new currency denominations of ₦5,000. The bank also made plans to convert ₦5, ₦10, ₦20 and ₦50 into coins which are all presently notes.[19]

The Central Bank of Nigeria has announced that it will no longer issue banknotes on polymer citing higher costs and environmental issues.[20][21][22]

On 12 November 2014, the Central Bank of Nigeria issued a ₦100 commemorative note to celebrate the centennial of Nigeria's existence. The notes are similar to its regular issue with the portrait of Chief Obafemi Awolowo on the front, but are redesigned to include a new color scheme, revised security features, and the text "One Nigeria, Great Promise" in microprinting. On the back is a quick response code (QRC) which when scanned leads users to a website about Nigeria's history.[23][24]

In 2019, the naira attained a landmark when for the first time, it featured the signature of a woman. Priscilla Ekwere Eleje, the Director of Currency operations of the Central Bank of Nigeria at the time, had the honour.[25]

Currently circulating banknotes[26]
1999–2005 series
Image Value Dimensions Main colour Description Date of
Obverse Reverse Obverse Reverse Watermark First printing Issue
[1] ₦100 151 × 78 mm Purple and multicolour Chief Obafemi Awolowo Zuma Rock As portrait(s), "CBN", value 1999 1 December 1999
[2] ₦200 Cyan and multicolour Sir Ahmadu Bello Pyramid of agricultural commodity and livestock farming 2000 1 November 2000
[3] ₦500 Blue and multicolour Dr. Nnamdi Azikiwe Off-shore oil rig 2001 4 April 2001
[4] ₦1000 Brown Alhaji Aliyu Mai-Bornu, Dr. Clement Isong CBN's corporate headquarters in Abuja 2005 12 October 2005
2006 series (paper and polymer banknotes)
[5] ₦5 130 × 72 mm Purple Alhaji Abubakar Tafawa Balewa Nkpokiti dancers Central Bank of Nigeria logo, "CBN" 2006 28 February 2007
[6] ₦10 Red Alvan Ikoku Fulani milk maids
[7] ₦20 Green General Murtala Mohammed Ladi Kwali
[8] ₦50 Blue Hausa, Igbo and Yoruba men and a woman Local fishermen
For table standards, see the banknote specification table.

Second naira

The naira was scheduled for redenomination in August 2008, although this was cancelled by then-President Umaru Musa Yar'Adua,[27] with 100 old naira to become 1 new naira. The Nigerian Central Bank stated that it would 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".[28]

Coins

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) - 50 Kobo (₦0.50) - 1 Naira (₦1) Due to inflation, Nigerian coins are all essentially worthless now. Each coin has an extremely low value.[29]

Banknotes

Banknotes were to be printed in denominations of:

  • 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 — no longer in use
    • 5 naira - had lesser value in 2018, and as of November 2022 has a much weakened purchasing power.

CBN Redesigns Naira in 2022

In 2022, the Central Bank of Nigeria under President Muhammadu Buhari led administration expressed the decision to redesign the naira as a statutory responsibility and a way to curb the increased circulation of counterfeit notes in the country. [30]The CBN governor, Mr Godwin Emefiele expressed that the approval for the redesign was granted by the president of the country in fighting corruption, terrorism, kidnapping and other unlawful practices. He said the higher naira denominations have been the denomination mostly used by the perpetrators of the acts which includes N100, N200, N500 and N1,000 notes.[31] [32] CBN, Nigeria’s apex bank informed the citizens of the need to return the old naira notes before the 15th November 2022 when the new notes will be in circulation. President Muhammadu Buhari officially unveiled the new notes at the state house after 19 years since the naira was redesigned. [33]

Exchange rates

The official exchange rate set by the Central Bank of Nigeria: naira to U.S. dollar is approximately ₦441.33 per 1 US dollar. This rate is almost two times different from the real exchange rate on the black market. The real exchange rate of the naira to U.S. dollar is approximately ₦752.50 per 1 US dollar on black market.[34]

Rate of the Nigerian naira for US$1 (1994–2005)

This table shows the historical value of one U.S. dollar in Nigerian naira. PM = parallel market.

Date ₦ per US$ Date ₦ per US$ Date ₦ per US$
1972 0.658 1993 17.30 (21.90 PM) 2014 170–199
1973 0.658 1994 22.33 (56.80 PM) 2015 199–300
1974 0.63 1995 21.89 (71.70 PM) 2016 390–489
1975 0.616 1996 21.89 (84.58 PM) 2017 ?
1976 0.62 1997 21.89 (84.58 PM) 2018 360
1977 0.647 1998 21.89 (84.70 PM) 2019 305
1978 0.606 1999 21.89 (88–90 PM) 2020 361
1979 0.596 2000 85.98 (105.00 PM) 2021 413 (June 2021)
1980 0.550 (0.900 PM) 2001 99–106 (104–122 PM) 2022 436 (Oct 2022)[35]
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 CNY EUR GBP HKD JPY USD EUR JPY USD
From Yahoo! Finance: AUD CAD CHF CNY EUR GBP HKD JPY USD EUR JPY USD
From XE.com: AUD CAD CHF CNY EUR GBP HKD JPY USD EUR JPY USD
From OANDA: AUD CAD CHF CNY EUR GBP HKD JPY USD EUR JPY USD

See also

References

  1. ^ "Central Bank of Nigeria - Home". Central Bank of Nigeria. Central Bank of Nigeria. Retrieved 6 August 2014.
  2. ^ "Legal Tender". www.cbn.gov.ng. Retrieved 2022-11-11.
  3. ^ "Central Bank of Nigeria:: History of The Currency".
  4. ^ a b "10 interesting facts you should know about Nigerian currency". Pulse Nigeria. 2018-03-02. Retrieved 2021-04-17.
  5. ^ "Central Bank of Nigeria:: History of The Currency". www.cbn.gov.ng. Retrieved 2021-04-17.
  6. ^ "Nigeria leaves key rate at 12 pct as expected", Reuters, 31 January 2012
  7. ^ "Nigeria Floats its Currency". The Economist. 18 June 2016.
  8. ^ "Nigeria: Nigeria's New Notes And Coins". This Day. 2007-02-21. Retrieved 2007-02-26.
  9. ^ "Nigeria: New Currency - Two Per Cent of Withdrawals to Be in Coins - CBN". Vanguard. 2007-02-21. Retrieved 2007-02-26.
  10. ^ Central Bank of Nigeria. "Old Coins - 1973 Coins". Archived from the original on 2006-01-17. Retrieved 2007-02-26.
  11. ^ "Welcome to the New Central Bank of Nigeria Website".
  12. ^ "Welcome to the New Central Bank of Nigeria Website". cenbank.org.
  13. ^ "Central Bank of Nigeria Website - Currency - 25 Kobo". cenbank.org.
  14. ^ "Welcome to the New Central Bank of Nigeria Website". cenbank.org.
  15. ^ "Welcome to the New Central Bank of Nigeria Website". cenbank.org.
  16. ^ "Central Bank of Nigeria - Did You Find". cenbank.org.
  17. ^ "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]
  18. ^ "Big banknote too much for Nigeria". 29 December 1999 – via bbc.co.uk.
  19. ^ CBN To Introduce N5000, N2000 Notes; N50, N20, N10 Coins Archived May 16, 2012, at the Wayback Machine
  20. ^ Nigeria to abandon polymer banknotes Archived March 4, 2016, at the Wayback Machine BanknoteNews.com. September 13, 2012. Retrieved on 2012-11-09.
  21. ^ CBN Clarifies Decision to Abandon Polymer Banknotes AllAfrica (allafrica.com) September 12, 2012. Retrieved on 2012-11-09.
  22. ^ Plan to Phase-out Polymer Banknotes Stirs New Controversy Archived April 27, 2013, at the Wayback Machine This Day Live (www.thisdaylive.com). April 24, 2013. Retrieved on 2013-04-25.
  23. ^ "New ₦100 Commemorative Centenary Celebration". Archived from the original on 2015-09-08. Retrieved 2018-12-26.
  24. ^ Nigeria new 100-naira commemorative confirmed Archived October 14, 2016, at the Wayback Machine BanknoteNews.com February 9, 2015. Retrieved on 2015-02-13.
  25. ^ "10 Quick Facts About Priscilla Ekwere Eleje". 16 April 2019.
  26. ^ "Central Bank of Nigeria | Home".
  27. ^ "Central Bank of Nigeria | Home" (PDF). Archived (PDF) from the original on 2007-09-26. Retrieved 2007-08-27.
  28. ^ "Nigeria set to free its currency" Archived March 5, 2016, at the Wayback Machine, BBC News, 14 August 2007
  29. ^ "The Inevitable Choice Between N10,000 Note and Redenomination".
  30. ^ Okon, Desmond (2022-10-26). "CBN Redesigns Naira Notes". The Cable Nigeria. Retrieved 2022-12-01.
  31. ^ "CBN Plan Naira Redesign". Punch.com. 2022-10-27. Retrieved 2022-12-01.
  32. ^ "CBN to Launch New Naira Notes in December". Premium Times. 2022-10-26. Retrieved 2022-12-01.
  33. ^ Ume-Ezeoke, Gloria (2022-11-23). "Buhari Unveils Redesigned Naira Notes". channelstv.com. Retrieved 2022-12-01.
  34. ^ The real exchange rate of the naira to U.S. dollar on black market https://usd.currencyrate.today/ngn
  35. ^ "Dollar to Naira Black Market Exchange Rate Today | USD to Naira (NGN) | NPC Rates". 2022-10-22. Retrieved 2022-10-23.
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