Nigerian Currency History: Symbol, Sign and Worth

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Nigerian Currency History: Symbol, Sign and Worth

Nigeria as a country, is a middle income, mixed economy and emerging market. Considered as one of the largest economies in Africa and the largest in West Africa, blessed with many useful natural resources and has been exporting to several countries around the world.

The official currency, currently used in Nigeria is called the Nigerian Naira, which was subdivided into 100 Kobo. In this writeup, I will discuss about the history, symbol, sign and of the Nigerian currency – the Naira and Kobo.

The Nigerian Currency History :

Before the introduction of the Nigerian Naira and Kobo, which was in the year 1973, the pound was the currency of Nigeria and was used between 1907 and 1973. Prior to this time, Nigeria had used various forms of money including cowries and manilas.

It was not until the year 1958 that Nigeria used the British West African pounds that it issued its own currency. The pounds was subdivided into 20 shillings, each of which was 12 pences. Back then, the Nigerian pounds was at parity with the British pounds with easy convertibility. It was replaced with the introduction in 1973 of the decimal naira at a rate of 1 pound = 2 naira. This new change made Nigeria the last country to abandon the £sd currency system.

In 1959, coins were issued in denominations of ½, 1, 3 and 6 pence respectively and in 1 and 2 shillings. The ½ and 1 penny coins were bronze and holed. The 3 pence coin which was minted in nickel-brass was a smaller version of the distinctive twelve sided three penny bits that was used in the UK, Jersey and Fiji.

Bank Notes

There was emergency issues made by the government in the year 1918 presenting denominations of 1, 10 and 20 shillings. By 1959, the Central Bank of Nigeria introduced notes in denominations of 5 and 10 shillings, including 1 and 5 pounds.

Three series of notes were issued, in 1958, 1967 and 1968 respectively.

Nigerian Currency Symbol and Sign

Following the introduction of new currency – the Naira and Kobo as the legal tender in 1973, the Kobo was the first to be widely used in the country. There was certain unique symbols and signs that distinguished the currency.

Nigerian Currency Symbol :

  • Naira and Kobo

Nigerian Currency Sign : 

  • The Naira has the sign ” ₦ ”

  • The Kobo was signed ”K”

There was five denominations of the Kobo which were 1/2k, 1k, 5k, 10k and 25k in 1973 and by the year 1989, the 50K and N1 notes were changed to coins.

Today in Nigeria, the Kobo coins have been phased out because its value can no longer purchase items in the country’s marketplace.

The Naira and The Naira Sign

The Central Bank of Nigeria (CBN) was the only organization authorized to be the issuer of the naira bank notes in the country, while the printer was the Nigerian Security Printing and Minting Company.

The Nigerian Naira, signed with the symbol “₦”, and the code “NGN” was introduced in notes in the year 1973 which included the following denominations: ₦1, ₦5, ₦10 and ₦20.

Introduction of Major Naira Notes :

  • In the year 1991, the ₦50(naira) note was not introduced to the country.
  • After this was followed by the introduction of the ₦100(naira) note wad introduced in 1999.
  • The 200 naira note came into existence in the year 2000.
  • By 2001, 500 naira notes were introduced.
  • And final, the Nigerian Naira highest denomination ₦1000 note was released on October 12, 2005.

Along the line, some notes were subsequently phased out, others were redesigned.

Naira Worth

By the time the naira was introduced on 1 January, 1973 to replace the pound, it was at a rate of 2 naira = 1 pound. And by the year 2008, there was a plan to redenominate the naira at 1 new naira = 100 old naira but the plan was suspended.

There has been a rampant occurence of inflation in Nigeria over the existence of naira.

The Central Bank of Nigeria increased key interest rate for 6 times, rising from 6.25% to 12% in 2011 and on 31 January 2012 decided to maintain the key interest rate at 12%, to reduce the impact of inflation as a result of the reduction in fuel subsidies.

On 20 June 2016, the naira was allowed to float, after being pegged at 197 to the US dollar for several months.

As of now, the official rate of the US dollar to the Nigerian naira is 1 US dollar = 314.7500 Nigerian nairas. Naira exchange rate in black market is unstable and excessively high. As at the time of this writeup, 1 US dollars is equivalent to 506 Naira in black market, lagos rate.

From financialwatchngr, that’s all on Nigerian Currency History: Symbol, Sign and Worth.

Reference Nigerian Information