Nigerian naira
Template:Short description Template:Redirect Template:Use Nigerian English Template:Infobox currency
The naira (sign: ₦; code: NGN; Template:Langx, Template:Langx, Template:Langx, Template:Langx) is the currency of Nigeria. One naira is divided into 100 kobo.<ref>Template:Cite web</ref>
The Central Bank of Nigeria (CBN) is the sole issuer of legal tender money throughout the Federal Republic of Nigeria.<ref>Template:Cite web</ref><ref>Template:Cite web</ref> 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.<ref>Template:Cite web</ref>
A major cash crunch occurred in February 2023 when the Nigerian government used a currency note changeover—delivering too few of the new notes into circulation—to attempt to force citizens to use a newly created government-sponsored central bank digital currency. This led to extensive street protests.<ref name=africanews20230216/><ref name=ktrend20230216/><ref name=dpost20230216/>
History
[edit]The naira was introduced on 1 January 1973,<ref name="auto">Template:Cite web</ref> replacing the Nigerian pound at a rate of £1 = ₦2.<ref name="auto1">Template:Cite web</ref> 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.<ref>Template:Cite web</ref> 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 Template:Unichar.
The name "Naira" was coined from the word "Nigeria" by Obafemi Awolowo.<ref name="cnd-history">Template:Cite web</ref><ref>Template:Cite web</ref> 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 a reduction in fuel subsidies.<ref>"Nigeria leaves key rate at 12 pct as expected", Reuters, 31 January 2012</ref>
From 20 June 2016, the naira was allowed to float, after being pegged at ₦197 to US$1 for several months.<ref>Template:Cite news</ref> TradeTemplate:According to whom speculated the natural range of the naira would be between ₦280 and ₦350 to the dollar.<ref>Template:Cite news</ref>Template:Update after
In October 2021, the eNaira, the digital version of the state currency, was officially launched in Nigeria by President Muhammadu Buhari.<ref>Template:Cite web</ref>
The 2023 Nigerian currency crisis was precipitated in January 2023 by a shortage of naira cash amid an attempt by the Nigerian government to force citizens to use newly-designed notes, which the government said would help stem the tide of vote-buying in the lead-up to the 2023 general elections. This led to extensive street protests throughout January and February 2023.<ref name=africanews20230216>Template:Cite web</ref><ref name=ktrend20230216>Template:Cite web</ref><ref name=dpost20230216>Template:Cite web</ref> The country's Supreme Court later invalidated the government's pronouncement that the previous notes had ceased to become legal tender.<ref>Template:Cite web</ref>
On 14 June 2023, the Naira fell 23% in a day, to a rate of ₦600 to US$1, as the central bank abandoned its currency peg and allowed the naira to trade freely.<ref>Template:Cite web</ref> On 19 July 2023, the Naira fell to a new record low of ₦853 to US$1.<ref>Template:Cite web</ref>
Between the 1st Feb 2024 and the 5th Feb 2024, the currency fell again, more than 50%, from NGN 898 to NGN 1,400, before drifting down to NGN 1,600 as of 30 July 2024 <ref>https://uk.finance.yahoo.com/quote/USDNGN%3DX/history/ Template:Bare URL inline</ref>
Coins
[edit]Nigerian central bank info as of 2022 is in this source:<ref>Template:Cite web</ref>
In 1973, coins were introduced in denominations of Template:Frac, 1, 5, 10 and 25 kobo, with the Template:Frac and 1 kobo in bronze and the higher denominations in cupro-nickel. The Template:Frac 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.<ref>Template:Cite news</ref> The deadline for exchanging the old currency was set at 31 May 2007.<ref>Template:Cite news</ref> The central bank stated that the Template:Frac to 25 kobo coins were withdrawn from circulation with effect from 28 February 2007.<ref>Template:Cite web</ref>
- Template:Frac kobo<ref>Template:Cite web</ref>
- 1 kobo<ref name="auto1"/>
- 5 kobo<ref>Template:Cite web</ref>
- 10 kobo<ref>Template:Cite web</ref>
- 25 kobo<ref>Template:Cite web</ref>
- 50 kobo<ref>Template:Cite web</ref>
- 1 naira<ref>Template:Cite web</ref>
- 2 naira<ref>Template:Cite web</ref>
Banknotes of Nigeria
[edit]
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.<ref name="cnd-history"/> 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 12 October 2005.<ref>Template:Cite web</ref>
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,<ref name=Vanguard>Template:Cite news Template:Dead link</ref> 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,<ref>Template:Cite web</ref> 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.<ref>Template:Cite web</ref>
On the first prints of the ₦100 notes issued starting 1 December 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.<ref>Template:Cite web</ref>
In 2012, the Central Bank of Nigeria was considering 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.<ref>CBN To Introduce N5000, N2000 Notes; N50, N20, N10 Coins Template:Webarchive</ref>
The Central Bank of Nigeria announcedTemplate:When that it would no longer issue banknotes on polymer citing higher costs and environmental issues.<ref>Nigeria to abandon polymer banknotes Template:Webarchive BanknoteNews.com. 13 September 2012. Retrieved on 2012-11-09.</ref><ref>CBN Clarifies Decision to Abandon Polymer Banknotes AllAfrica (allafrica.com) 12 September 2012. Retrieved on 2012-11-09.</ref><ref>Plan to Phase-out Polymer Banknotes Stirs New Controversy Template:Webarchive This Day Live (www.thisdaylive.com). 24 April 2013. Retrieved on 2013-04-25.</ref>
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 QR code (Quick Response code) which when scanned leads users to a website about Nigeria's history.<ref>Template:Cite web</ref><ref>Nigeria new 100-naira commemorative confirmed Template:Webarchive BanknoteNews.com February 9, 2015. Retrieved on 2015-02-13.</ref>
In 2019, the naira attained a landmark when it featured the signature of Priscilla Ekwere Eleje, the new Director of Currency operations of the Central Bank of Nigeria and the first woman to hold the post.<ref>Template:Cite web</ref> and now in Nigeria there are two #200 notes, two #500 notes and two #1000 notes
| Currently circulating banknotes<ref name="cenbank.org">Template:Cite web</ref> | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| 1999–2005 series | |||||||||
| Image | Value | Dimensions | Main colour | Description | Date of | ||||
| Obverse | Obverse | Reverse | Watermark | First printing | Issue | ||||
| ₦100 | 151 × 78 mm | Purple and multicolour | Chief Obafemi Awolowo | Zuma Rock | As portrait(s), "CBN", value | 1999 | 1 December 1999 | ||
| ₦200 | Cyan and multicolour | Sir Ahmadu Bello | Pyramid of agricultural commodity and livestock farming | 2000 | 1 November 2000 | ||||
| [1] Template:Webarchive | ₦500 | Blue and multicolour | Dr. Nnamdi Azikiwe | Off-shore oil rig | 2001 | 4 April 2001 | |||
| [2] Template:Webarchive | ₦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 | 130 × 72 mm | Brown | Alhaji Abubakar Tafawa Balewa | Nkpokiti dancers | Central Bank of Nigeria logo, "CBN" | 2006 | 28 February 2007 | ||
| ₦10 | Red | Alvan Ikoku | Fulani milk maids | ||||||
| ₦20 | Green | General Murtala Mohammed | Ladi Kwali | ||||||
| ₦50 | Blue | Hausa, Igbo and Yoruba men and a woman | Local fishermen | ||||||
| Template:Standard banknote table notice | |||||||||
ref>CBN To Introduce N5000, N2000 Notes; N50, N20, N10 Coins Template:Webarchive
Second naira
[edit]The naira was scheduled for redenomination in August 2008, although this was cancelled by then-President Umaru Musa Yar'Adua,<ref>Template:Cite web</ref> 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".<ref>Template:Cite news</ref>
Coins and banknotes, and their security features, are described on the website of the Central Bank of Nigeria.<ref>Template:Cite web</ref>
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) - 50 Kobo (₦0.50) - 1 Naira (₦1) Due to inflation, Nigerian coins are all essentially worthless now.<ref>Template:Cite web</ref>
Banknotes
[edit]Banknotes were to be printed in denominations of:
- 5 naira (₦5)<ref>Template:Cite web</ref>
- 10 naira (₦10)<ref>Template:Cite web</ref>
- 20 naira (₦20)<ref>Template:Cite web</ref>
- 50 naira (₦50)<ref>Template:Cite web</ref>
- 100 naira (₦100)<ref>Template:Cite web</ref>
- 200 naira (₦200)<ref>Template:Cite web</ref>
- 500 naira (₦500)<ref>Template:Cite web</ref>
- 1000 naira (₦1000)<ref>Template:Cite web</ref>
2022 redesign
[edit]Template:See also In 2022, the Central Bank of Nigeria (CBN) 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.<ref>Template:Cite web</ref> 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 ₦200, ₦500 and ₦1,000 notes.<ref>Template:Cite web</ref><ref>Template:Cite web</ref> President Muhammadu Buhari officially unveiled the new notes at the state house after 19 years since the naira was redesigned.<ref>Template:Cite web</ref> The newly redesigned naira notes were planned to be printed by The Nigerian Security Printing and Minting Company Limited which will make the country one out of the four Africa countries who print their currencies locally and not import from foreign countries.<ref>Template:Cite webTemplate:Dead link</ref><ref>Template:Cite web</ref>Template:Update after
In November 2022, CBN, Nigeria's central bank, informed the citizens that the new notes will be issued from 15 December 2022 onward, and that old naira notes need to be returned to the banking system before 31 January 2023 when they will cease to be legal tender.<ref>Template:Cite web</ref><ref>Template:Cite web</ref> The deadline to exchange banknotes was extendedTemplate:When to February 2023.<ref name=":0">Template:Cite news</ref>
The redesign is controversial. There have been shortages of the new bank notes at ATMs, necessitating some Nigerians to wait in long lines or sleep on the sidewalk waiting for ATMs to be reloaded.<ref name=":0" />
| Currently circulating banknotes<ref name="cenbank.org"/> | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| 2022 Redesign | |||||||||
| Image | Value | Dimensions | Main colour | Description | Date of | ||||
| Obverse | Reverse | Obverse | Reverse | Watermark | First printing | Issue | |||
| ₦200 | 151 × 78 mm | Pink | Sir Ahmadu Bello | Pyramid of agricultural commodity and livestock farming | As portrait(s), "CBN", value | 2022 | 2022 | ||
| ₦500 | Green | Dr. Nnamdi Azikiwe | Off-shore oil rig | 2022 | 2022 | ||||
| File:Front view of New 1000 naira note.jpg | ₦1000 | Blue | Alhaji Aliyu Mai-Bornu, Dr. Clement Isong | CBN's corporate headquarters in Abuja | 2022 | 2022 | |||
Hidden naira notes
[edit]In 2022, Nigeria's central bank expressed the scarcity of the currency due to high volume of the naira kept outside the banking system and attributed to be hoarded by politicians.<ref>Template:Cite web</ref>
Exchange rates
[edit]When the naira was introduced, it had an official exchange rate of US$1.52 for ₦1, though a currency black market existed in which the naira traded at a discount relative to the official exchange rate.
The official exchange rate set by the Central Bank of Nigeria: naira to U.S. dollar is approximately ₦767.54 per 1 US dollar. This rate is almost two times differentTemplate:Clarify from the illegal black market exchange rate. The Black-Market exchange rate of the naira to the U.S. dollar is approximately ₦752.50 per 1 US dollar.Template:When<ref>Template:Cite web</ref>
According to a recent (June 2024) report by Naija News, the parallel market exchange rate of the naira to the U.S. dollar is around ₦1483 per 1 USD, significantly higher than the official Central Bank of Nigeria rate. This disparity highlights underlying economic challenges and market pressures.<ref>Template:Cite web</ref>
This table shows the historical value of one U.S. dollar in Nigerian naira. PM = parallel market.
| Date | ₦ per US$ | 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 | 333 | ||
| 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 | 399 | ||
| 1980 | 0.550 (0.900 PM) | 2001 | 99–106 (104–122 PM) | 2022 | 423 | ||
| 1981 | 0.61 | 2002 | 109–113 (122–140 PM) | 2024 | 1483 | ||
| 1982 | 0.673 | 2003 | 114–127 (135–137 PM) | Jan 2025 | 1555 | ||
| 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 |
See also
[edit]References
[edit]External links
[edit]Template:Commons category-inline
- Interview with Sanusi Lamido Sanusi, Governor of the Central 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
Template:Nigeria topics Template:Nigerian currency and coinage Template:Currency signs Template:Currencies of Africa Template:Portal bar Template:Authority control