The evolution of the Nigerian currency dates back from the use of cowries to the naira that we use in today’s world.
Nigeria’s monetary units and structure have seen significant changes since the country’s independence in 1960.
Nigeria’s financial sector evolved throughout time, from barter commerce to using manilla and cowries. Manilla was a bronze or copper-based kind of currency. They are also being used as bracelets and leg chains on occasion.
On January 1, 1973, the naira was launched into the monetary system, replacing the pence, shillings, and pounds. Among the British-colonized countries, Nigeria was the latest to quit this arrangement.
Nigeria’s monetary system has evolved to reflect the country’s history, colonization, power, and struggle. The Naira currency is more than just a medium of money and commerce. It is also the face of the country and the status quo.
The currency appeared to have a two-way mechanism with every evolution. Its value fluctuates.
Currency is regarded as a unifying force. It serves as a means of exchange, allowing local and international border lines to interact (international and local trade). The “WaZoBia” naira note commemorates the N50 naira note. It contains artistic pictures of Nigeria’s three main ethnic groups: Yoruba, Igbo, and Hausa.
Money is sometimes known as the universal language. The currency combines all languages into a single one. When it comes to money, we all speak the same language. The naira is a vital emblem of Nigerian nationality and pride. Nigeria’s monetary system has lately been named as Africa’s second best economy.
Although, in current history, the naira has thunder-bolted as a consequence of the paucity of foreign cash, the humdrum economy we currently operate is dependent on petroleum.
A perfect currency would be sturdy, long-lasting, convenient to count, hard to duplicate, lightweight, reliable, and easily identifiable. Nigeria now has eight paper currencies that meet all of these eligibility requirements: N1000, N500, N200, N100, N50, N20, N10, and N5; and three currency coins that meet all of these eligibility requirements: N2, N1, and 50k.
Nigeria has previously produced and removed many coins and notes that this might have been difficult to keep track of. However, I have prepared for you a comprehensive list of all previously utilized currencies. The evolution of the Nigerian currency.
the evolution of the nigerian currency
Before 1700-1900s (pre-colonial era)
As a form of currency, a trade-by-barter method involving agricultural products and animals such as goats, cattle, and sheep was widespread. Manillas were introduced as a slave trade currency as a result of the slave trade and the arrival of the Whites. African Bank Notes, one slave was purchased with 12–15 brass manillas at a time.
Cowries are one of Africa’s oldest known kinds of currency. Before coins and bank notes were integrated into the economy, cowries and sacks were used.
And according to the Central Bank of Nigeria (CBN), a “string” is made up of 40 cowries, a “head” is made up of 50 strings, and a “bag” is made up of ten heads. In 1865, one sack of twenty-four thousand shells was given to collect 1–2 British pounds.
period of the colonial government (early 1900s)
According to African Bank Notes, the British West African Currency Board was established in 1912 to manage the production of currency for the British West African Colonies. These currencies were used in Nigeria, Ghana, Sierra Leone, and Gambia.Cowries, which were the predominant currency at the time, were a powerful competitor to the British-introduced paper currency, but their use had diminished by the 1920s. One Centre Lagos was used as currency at the time.
The West African Currency Board eventually printed its 2-, 10-, and 20-shilling notes in 1916-1918, but Nigerian authorities were compelled to issue their own urgent currencies in 1918 before these materials could enter the country.
In 1918, the 2/2, 10/-, and 20 shillings were officially issued.
The notes, however, were not well received and were later discontinued in 1923 since few consumers were able to use them. Between 1928 and 1941, the modified notes were reissued after yet another 10 years. These prints seem to be of higher quality.
The board continued to restyle the currencies and issue new notes in response to rising currency demand, notably the 5 note in 1954, which was the largest denomination in existence at the time.
in 1959
The West African Currency Board had to disband as independence approached, and the Central Bank of Nigeria was created in 1959. They did, however, continue to utilize the pound.
Nigerian currency notes in the denominations of 5 pounds, 1 pound, 10 shillings, 5 shillings, and coins in the values of 2 shillings, three (3p) pence were minted by the Central Bank of Nigeria. Pennies are divided into two categories: one penny (1 p) and one half penny (1 / 2 p).
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In 1965
The national currency was modified in 1965 to represent the republican progress of the country. The five pound, one pound, ten shillings, and five shillings denominations were reissued in various colours from that of 1959. The coins that were being used were the ones that were issued in 1959. The fronts of the notes all had the same images, but the backs had different designs.
in 1968
Nigeria was in the midst of a civil war in 1968, therefore fresh currency notes were released as a war method of preventing the misuse of the country’s currency notes at the time. Five pounds, one pound, ten shillings, and five shillings were the denominations of the currency notes. The 1959 coins were the same as the previous ones.
in 1973
On January 1, 1973, Nigeria took a giant step forward by adopting its own decimal currency. This alteration affected both coins and notes.
Ten (10/-) Shillings were equivalent to one Naira. The notes were ten naira, five naira, one naira, and fifty kobo, with coins in the values of twenty kobo, 10 kobo, 5 kobo, one kobo, and half kobo.
in 1977
The Twenty Naira note was created in 1977, after the murder of General Murtala Ramat Muhammed (1938–1966), as the largest denomination and the first money to contain the picture of a Nigerian resident, the late Head of State. As an homage, the note was released on the first anniversary of Gen. Muhammad’s murder. The worth of all the other currencies stayed unchanged.
in 1979
All other ten, five, and one naira notes were launched on July 2, 1979, to depict pictures of patriotic icons :Alvan Ikoku, Sir Tafawa Balewa, and Sir Herbert Macaulay, as stated on October 1, 1978. To aid authentication, separate hues were utilized that were comparable to those found on current banknotes of various values. The carvings on the notes’ backs represented parts of the country’s culture.
in 1984
Except for the 50 kobo note, all of the notes were removed and reprinted in other colors in April 1984. This was accomplished by the military government, which took control in December 1983, in order to stop the increasing rate of cash trafficking at the time. The coins, on the other hand, stayed the same.
in 1991
The fifty naira note was introduced as the largest denomination in October 1991, with the one naira and fifty kobo notes being eliminated and replaced. As part of a substantial reform of the country’s currency structure, an entirely new coin range was released. Fifty Kobo (50k) and one naira were the denominations of the coins (1). The different types of kobo (1 k) are one kobo (1 k), twenty-five kobo (25k), ten kobo (10k), and one kobo (1 k). This year, kobo and five kobo were eliminated.
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in 1999
On December 1, 1999, the Nigerian currency system released the hundred (100) naira note as one of the new generation notes. It included the most recent advancements in paper and ink security printing technologies. On the front, the most prominent feature is the picture of the late Chief Obafemi Awolowo, the former premier of the western side. And the picture of Zuma Rock was added to the back of the note.
in 2000
On November 1, 2000, the two-hundred (200) naira note was issued, having the same protective measures as the one-hundred naira note. On the front is a portrait of Alhaji Sir Ahmadu Bello, the Sardauna of Sokoto and Northern Nigeria’s first Premier.
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in 2001
On April 4, 2001, the five-hundred naira note was issued. A image of Dr. Nnamdi Azikiwe, the first President of the Federal Republic of Nigeria, is on the front. A picture of an offshore oil rig is on the back of the note.
in 2005
On October 12, 2005, the One-Thousand (1000) Naira note was unveiled, featuring even more enhanced security measures. It is the largest currency currently in circulation. The images of Alhaji Aliyu Mai Bornu and Dr. Clement Isong, the first and second native governors of the Central Bank of Nigeria, are on the front of the note. A depiction of the CBN’s corporate headquarters in Abuja, Nigeria’s Federal Capital Territory, is on the back of the note.
in 2007
The one (1k), ten (10k), and twenty-five (25) kobo coins were phased out of circulation in 2007. Revamped polymeric currency banknotes in the values of Fifty Naira (50), Twenty Naira (20), Ten Naira (10), and Five Naira (5) were released in February.
The One Naira (1) and Fifty Kobo (50k) coins were similarly remodelled, as was the introduction of a new Two (2) Naira coin. The old notes had been effectively removed by May of that year.
See all banknotes here