Nigerian naira

Nigerian naira

Overview
The naira is the currency
Currency
In economics, currency refers to a generally accepted medium of exchange. These are usually the coins and banknotes of a particular government, which comprise the physical aspects of a nation's money supply...

 of Nigeria
Nigeria
Nigeria , officially the Federal Republic of Nigeria, is a federal constitutional republic comprising 36 states and its Federal Capital Territory, Abuja. The country is located in West Africa and shares land borders with the Republic of Benin in the west, Chad and Cameroon in the east, and Niger in...

. It is subdivided into 100 kobo.

The Central Bank of Nigeria
Central Bank of Nigeria
The Central Bank of Nigeria was established by the CBN Act of 1958 and commenced operations on July 1, 1959.The major regulatory objectives of the bank as stated in the CBN act of 1958 is to: issue legal tender, maintain the external reserves of the country, promote monetary stability and a sound...

 (CBN) is the sole issuer of legal tender
Legal tender
Legal tender is a medium of payment allowed by law or recognized by a legal system to be valid for meeting a financial obligation. Paper currency is a common form of legal tender in many countries....

 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 in 1973, replacing the pound
Nigerian pound
The pound was the currency of Nigeria between 1907 and 1973. Until 1958, Nigeria used the British West African pound, after which it issued its own currency. The pound was subdivided into 20 shillings, each of 12 pence...

 at a rate of 2 naira = 1 pound.
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Encyclopedia
The naira is the currency
Currency
In economics, currency refers to a generally accepted medium of exchange. These are usually the coins and banknotes of a particular government, which comprise the physical aspects of a nation's money supply...

 of Nigeria
Nigeria
Nigeria , officially the Federal Republic of Nigeria, is a federal constitutional republic comprising 36 states and its Federal Capital Territory, Abuja. The country is located in West Africa and shares land borders with the Republic of Benin in the west, Chad and Cameroon in the east, and Niger in...

. It is subdivided into 100 kobo.

The Central Bank of Nigeria
Central Bank of Nigeria
The Central Bank of Nigeria was established by the CBN Act of 1958 and commenced operations on July 1, 1959.The major regulatory objectives of the bank as stated in the CBN act of 1958 is to: issue legal tender, maintain the external reserves of the country, promote monetary stability and a sound...

 (CBN) is the sole issuer of legal tender
Legal tender
Legal tender is a medium of payment allowed by law or recognized by a legal system to be valid for meeting a financial obligation. Paper currency is a common form of legal tender in many countries....

 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.

History


The naira was introduced in 1973, replacing the pound
Nigerian pound
The pound was the currency of Nigeria between 1907 and 1973. Until 1958, Nigeria used the British West African pound, after which it issued its own currency. The pound was subdivided into 20 shillings, each of 12 pence...

 at a rate of 2 naira = 1 pound. This made Nigeria the last country to abandon the £sd
£sd
£sd was the popular name for the pre-decimal currencies used in the Kingdom of England, later the United Kingdom, and ultimately in much of the British Empire...

 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 .

Coins


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.

Banknotes


In 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 banknote
Polymer banknote
Polymer banknotes were developed by the Reserve Bank of Australia , Commonwealth Scientific and Industrial Research Organisation and The University of Melbourne and were first issued as currency in Australia in 1988. These banknotes are made from the polymer biaxially-oriented polypropylene ...

s, 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
Clement Isong
Dr. Clement Nyong Isong was a Nigerian banker and politician who was Governor of the Central Bank of Nigeria during the military regime of General Yakubu Gowon....

, former governors of the Central Bank of Nigeria.

On the first prints of the 100 naira notes issued starting December 1, 1999, Zuma Rock
Zuma Rock
Zuma Rock is a large monolith located in Niger State, Nigeria. It is just north of Nigeria's capital Abuja, along the main road from Abuja to Kaduna, and is sometimes referred to as "Gateway to Abuja." It is depicted on the 100 naira bill. Zuma Rock is 725 meters above its surroundings.- External...

 was captioned as located in Federal Capital Territory
Federal Capital Territory
Federal Capital Territory refer to:*Australian Capital Territory*Federal Capital Territory *Federal Capital Territory...

, while actually it is situated in Niger State
Niger State
Niger State is a state in the western part of Nigeria and the largest state in the country. The state capital is Minna, and other major cities are Bida, Kontagora, and Suleja. It was formed in 1976 when the then North-Western State was bifurcated into Niger State and Sokoto State.The state is named...

. Later prints removed the reference to FCT, ABUJA.

Second naira


The naira was scheduled for redenomination in August 2008, although this was cancelled by then-President Umaru Musa Yar'Adua
Umaru Musa Yar'Adua
Umaru Musa Yar'Adua was the President of Nigeria and the 13th Head of State. He served as governor of Katsina State in northern Nigeria from 29 May 1999 to 28 May 2007. He was declared the winner of the controversial Nigerian presidential election held on 21 April 2007, and was sworn in on 29 May...

), 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


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


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)

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 1991 8.04 (9.30 PM)
1973 0.658 1992 9.91
1974 0.63 1993 17.30 (21.90 PM)
1975 0.616 1994 22.33 (56.80 PM)
1976 0.62 1995 21.89 (71.70 PM)
1977 0.647 1996 21.89 (84.58 PM)
1978 0.606 1997 21.89 (84.58 PM)
1979 0.596 1998 21.89 (84.70 PM)
1980 0.550 (0.900 PM) 1999 21.89 (88-90 PM)
1981 0.61 2000 85.98 (105.00 PM)
1982 0.673 2001 99-106 (104-122 PM)
1983 0.724 2002 109-113 (122-140 PM)
1984 0.765 2003 114-127 (135-137 PM)
1985 0.894 (1.70 PM) 2004 127-130 (137-144 PM)
1986 2.02 (3.90 PM) 2005 132-136
1987 4.02 (5.90 PM) 2006 128.50-131.80
1988 4.54 (6.70 PM) 2007 120-125
1989 7.39 (10.70 PM) 2008 115.50-120
1990 7.39 (10.70 PM) 2009 145-171

Currently Circulating Banknotes http://www.cenbank.org/Currency/legaltender.asp
1999–2005 Series
Image Value Dimensions Main Colour Description Date of
Obverse Reverse Obverse Reverse Watermark first printing issue
http://www.banknoteworld.com/banknotes/nigeria/NigeriaP28-100Naira-(1999)-donatedth_b.jpg ₦100 151 × 78 mm Red and multicolour Chief Obafemi Awolowo
Obafemi Awolowo
Jeremiah Obafemi Awolowo was a Nigerian politician, trade unionist, author and statesman. A Yoruba and native of Ikenne in Ogun State of Nigeria, he started his career as a regional political leader like most of his pre-independence contemporaries and was responsible for much of the progressive...

Zuma Rock
Zuma Rock
Zuma Rock is a large monolith located in Niger State, Nigeria. It is just north of Nigeria's capital Abuja, along the main road from Abuja to Kaduna, and is sometimes referred to as "Gateway to Abuja." It is depicted on the 100 naira bill. Zuma Rock is 725 meters above its surroundings.- External...

As portrait(s), "CBN", value 1999 1 December 1999
http://www.banknoteworld.com/banknotes/nigeria/NigeriaP29-200Naira-2000-donatedmw_b.jpg ₦200 Blue and multicolour Sir Ahmadu Bello Pyramid of agricultural commodity and livestock farming
Agriculture in Nigeria
Agriculture in Nigeria is a major branch of the economy in Nigeria, providing employment for 70% of the population. The sector is being transformed by commercialization at the small, medium and large-scale enterprise levels...

2000 1 November 2000
http://www.banknoteworld.com/banknotes/nigeria/NigeriaP30-500Naira-2001-donatedsrb_b.jpg ₦500 Purple and multicolour Dr. Nnamdi Azikiwe Off-shore oil-rig
Petroleum in Nigeria
The petroleum industry in Nigeria is the largest industry and main generator of GDP in the West African nation which is also the continent's most populous...

2001 4 April 2001
http://www.banknoteworld.com/banknotes/nigeria/NigeriaPNew-1000Naira-2005-dml_b.jpg ₦1000 Purple Alhaji Aliyu Mai-Bornu, Dr. Clement Isong
Clement Isong
Dr. Clement Nyong Isong was a Nigerian banker and politician who was Governor of the Central Bank of Nigeria during the military regime of General Yakubu Gowon....

CBN
Central Bank of Nigeria
The Central Bank of Nigeria was established by the CBN Act of 1958 and commenced operations on July 1, 1959.The major regulatory objectives of the bank as stated in the CBN act of 1958 is to: issue legal tender, maintain the external reserves of the country, promote monetary stability and a sound...

's corporate headquarters in Abuja
Abuja
Abuja is the capital city of Nigeria. It is located in the centre of Nigeria, within the Federal Capital Territory . Abuja is a planned city, and was built mainly in the 1980s. It officially became Nigeria's capital on 12 December 1991, replacing Lagos...

2005 12 October 2005
2006 Series
http://www.banknoteworld.com/banknotes/nigeria/NigeriaPNew-5Naira-2006-donatedael_b.jpg ₦5 130 × 72 mm Mauve Alhaji Abubakar Tafawa Balewa
Abubakar Tafawa Balewa
Alhaji Sir Abubakar Tafawa Balewa, KBE was a Nigerian politician, and the only prime minister of an independent Nigeria. Originally a trained teacher, he became a vocal leader for Northern interest as one of the few educated Nigerians of his time...

Nkpokiti dancers Central Bank of Nigeria
Central Bank of Nigeria
The Central Bank of Nigeria was established by the CBN Act of 1958 and commenced operations on July 1, 1959.The major regulatory objectives of the bank as stated in the CBN act of 1958 is to: issue legal tender, maintain the external reserves of the country, promote monetary stability and a sound...

 logo, "CBN"
2006 28 February 2007
http://www.banknoteworld.com/banknotes/nigeria/NigeriaPNew-10Naira-2006-donatedael_b.jpg ₦10 Red Mr. Alvan Ikoku
Alvan Ikoku
Alvan Ikoku was a Nigerian educator, statesman, activist and politician. Born on August 1, 1900 in Arochukwu, present day Abia State, he was educated at Government School and Hope Waddell College, Calabar. In 1920, he received his first teaching appointment with the Presbyterian Church of Scotland...

Fulani
Fula people
Fula people or Fulani or Fulbe are an ethnic group spread over many countries, predominantly in West Africa, but found also in Central Africa and Sudanese North Africa...

 milk maids
http://www.banknoteworld.com/banknotes/nigeria/NigeriaPNew-20Naira-2006-dml_b.jpg ₦20 Green General Murtala Mohammed
Murtala Mohammed
General Murtala Ramat Mohammed born was a military ruler of Nigeria from 1975 until his assassination in 1976.-Role during 1960s coups:...

Ladi Kwali
Ladi Kwali
Ladi Kwali was a Nigerian potter.She was born in the village of Kwali in the Gwari region of Northern Nigeria, where pottery was a common occupation among women. She learned to make pottery as a child using the traditional method of coiling. She made large pots for use as water jars and cooking...

http://www.banknoteworld.com/banknotes/nigeria/NigeriaPNew-50Naira-2006-donatedael_b.jpg ₦50 Blue Hausa
Hausa people
The Hausa are one of the largest ethnic groups in West Africa. They are a Sahelian people chiefly located in northern Nigeria and southeastern Niger, but having significant numbers living in regions of Cameroon, Ghana, Cote d'Ivoire, Chad and Sudan...

, Igbo
Igbo people
Igbo people, also referred to as the Ibo, Ebo, Eboans or Heebo are an ethnic group living chiefly in southeastern Nigeria. They speak Igbo, which includes various Igboid languages and dialects; today, a majority of them speak English alongside Igbo as a result of British colonialism...

 and Yoruba
Yoruba people
The Yoruba people are one of the largest ethnic groups in West Africa. The majority of the Yoruba speak the Yoruba language...

 men and a woman
Local fishermen
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