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History of Nigerian Currency

THIS ARTICLE SOURCED FROM CBN OF

NIGERIA

During the pre-colonial era, different cultures used a variety of items as means of exchange. These included cowries, manilas, beads, bottles and salt amongst others.

The first major currency issue in Nigeria was undertaken sequel to the colonial ordinance of 1880 which introduced the Shillings and Pence as the legal tender currency in British West Africa. The units of coins managed by the Bank of England were one shilling, one penny, 1/2 penny and 1/10 penny and were distributed by a private bank, the Bank for British West Africa till 1912.

From 1912 to 1959, the West African Currency Board (WACB) issued the first set of banknotes (insert hyperlink) and coins in Nigeria, Ghana, Sierra Leone and the Gambia. The highest banknote denomination was one pound, while the one shilling coin was the highest coin denomination.

On 1st July, 1959 the Central Bank of Nigeria (CBN) issued Nigerian currency banknotes, while the WACB-issued banknotes and coins were withdrawn. It was not until 1st July, 1962 that the currency was changed to reflect the country’s republican status. The banknotes which bore the inscription, ’FEDERATION OF NIGERIA‘, now had, ‘FEDERAL REPUBLIC OF NIGERIA’, inscribed at the top. The notes were again changed in 1968 following the misuse of the currency banknotes during the civil war.

Sequel to the decision by the government to change from the metric to decimal, the name of the Nigerian currency was changed in January, 1973. The major unit of currency which used to be £1 ceased to exist and the one naira which was equivalent to ten shillings became the major unit, while the minor unit was called the kobo; hundred of which made one naira.

On 11th February 1977, a new banknote with the value of twenty naira (₦20) was issued. It was the highest denomination introduced at the time as a result of the growth of the economy; the preference for cash transactions and the need for convenience.

The banknote was the first in Nigeria to bear the portrait of a prominent Nigerian citizen, the late Head of State, General Murtala Ramat Muhammed (1938-1976) who was the torch bearer of the Nigerian Revolution in July, 1975. The note was issued on the 1st anniversary of his assassination as a fitting tribute to a most illustrious son of Nigeria. He was declared a national hero on 1st October 1978.

On 2nd July, 1979, new currency banknotes of three denominations, namely ₦1, ₦5 and ₦10 were introduced. These notes were of the same size i.e. 151 X 78 mm as the ₦20 note issued on 11th February, 1977. In order to facilitate identification, distinctive colours were used for the various denominations. The notes bore the portraits of three eminent Nigerians, who were declared national heroes on 1st October, 1978. The engravings at the back of the notes reflected various cultural aspects of the country.

In April 1984, the colours of all the banknotes in circulation were changed with the exception of the 50 Kobo banknote to arrest the currency trafficking prevalent at the time. In 1991, the 50K and ₦1 were both coined.

In response to the expansion in economic activities and to facilitate an efficient payments system, the ₦100, ₦200, ₦500 and ₦1000 banknotes were introduced in December 1999, November 2000, April 2001 and October 2005 respectively.

On 28th February, 2007, as part of the economic reforms, ₦20 was issued for the first time in polymer substrate, while the ₦50, ₦10 and ₦5 banknotes; as well as ₦1 and 50K coins were reissued in new designs, and the ₦2 coin was introduced.

On 30th September, 2009 the redesigned ₦50, ₦10 and ₦5 banknotes were converted to polymer substrate following the successful performance of the ₦20 (polymer) banknote. Thus, all lower denomination banknotes were now printed in the polymer substrate.

Finally, the CBN, as part of its contribution towards the celebration of the nation’s 50th anniversary of Nigeria’s Independence and 100 years of its existence as a nation, issued the ₦50 Commemorative polymer banknote on 29th September, 2010; and the N100 Commemorative banknote on 19th December, 2014 respectively.

Further from other Source :

Before the West African Currency Board was formed, Nigeria already had it own currency in the form of cowries and manilas. The board was in charge of issuing currency notes in the country. This was during the time of the colonial masters in the year 1912 to 1959.

By 1st July, 1959, the West African Currency Board notes and coins stopped circulating because it was withdrawn which allowed the Central Bank of Nigeria to issue the Nigerian currency notes and coins.

These notes and coins were later misused and by 1st July, 1962, a new legal tender was introduced to showcase country’s new status of independence. The money was also changed in 1968 during the Biafran civil war to weaken the opposition.

An announcement was made on 31st March, 1971 by the then military Head of State that Nigeria would start using a decimal currency as from 1st January, 1973.

After much deliberation, it was agreed that Nigeria’s indigenous currency unit should be called Naira and it would be equivalent to ten shillings. The minor unit would be called kobo; 100 kobo would equal one Naira.

Since then, Naira and Kobo has been the official currency of Nigeria. The Central Bank of Nigeria on her part is the only issuer of the legal tender money throughout country. The CBN also controls the volume of money supply in the economy in a bid to ensure a stable economy.

Nigerian Currency History begins in 1912:

Nigeria had used other forms of money (cowries and manilas) prior to the introduction of the Naira. The West African Currency Board was the body legally responsible for issuing currency notes in Nigeria between 1912 to 1959 .

Nigerian Currency Notes issued on1st of July, 1959:

The Central Bank of Nigeria withdrew the West African Currency Board notes and coins, and issued the Nigerian currency notes and coins on 1st of July, 1959.

Legal Tender Status 1962-1968:

By 1st July, 1962, the legal tender status was changed to showcase Nigeria’s new independent status. The currency notes were again changed in 1968 during the civil war.

Introduction of Naira & Kobo denomination 1971–2005:

The government announced on March 1971 that it would change to decimal currency system as from 1st January, 1973.

It also announced that the major currency unit would be called Naira represented with the symbol “₦” and minor unit, kobo with symbol“k”

The CBN on that same date introduced notes for 50 kobo, 1, 5, 10 and 20 Naira respectively.

In the year 1991, 50 naira notes were issued and was also followed by 100 naira in the year 1999, 200 naira notes in the year 2000, 500 naira in the year 2001 and finally the 1000 naira note was announced in the year 2005 which is currently the highest denomination of the naira.