In the pre-colonial era, various items served as mediums of exchange across different cultures in Nigeria. These included cowries, manilas, beads, bottles, and salt, among others.
The issuance of the first major currency in Nigeria occurred following the colonial ordinance of 1880, which introduced the Shillings and Pence as legal tender currency in British West Africa. Coins managed by the Bank of England, including one shilling, one penny, 1/2 penny, and 1/10 penny, were distributed by the Bank for British West Africa until 1912.
From 1912 to 1959, the West African Currency Board (WACB) issued the initial set of banknotes and coins in Nigeria, Ghana, Sierra Leone, and the Gambia. Banknotes reached a denomination of one pound, while the one shilling coin held the highest coin denomination.
On July 1, 1959, the Central Bank of Nigeria (CBN) introduced Nigerian currency banknotes, replacing those issued by the WACB. The currency was revised on July 1, 1962, to reflect the country’s republican status, with banknotes now inscribed “FEDERAL REPUBLIC OF NIGERIA” instead of “FEDERATION OF NIGERIA.” Subsequent changes occurred in 1968 due to currency misuse during the Civil War.
In January 1973, following the government’s decision to switch from metric to decimal, the Nigerian currency underwent a transformation. The major unit shifted from £1 to one naira, with the minor unit named kobo, where a hundred kobo equaled one naira.
On February 11, 1977, a new banknote valued at twenty naira (₦20) was issued, featuring the portrait of General Murtala Ramat Muhammed, a prominent Nigerian citizen. This marked the introduction of the highest denomination at the time.
Subsequent to Muhammed’s assassination, new currency banknotes of ₦1, ₦5, and ₦10 denominations were introduced on July 2, 1979. These banknotes, along with the ₦20 note, shared a uniform size and featured portraits of three eminent Nigerians declared national heroes.
Throughout the years, currency colours were changed in April 1984 to combat currency trafficking, and coins for 50K and ₦1 were introduced in 1991. To accommodate economic expansion, banknotes of ₦100, ₦200, ₦500, and ₦1000 denominations were issued between December 1999 and October 2005.
As part of economic reforms, polymer substrates were introduced for ₦20 banknotes on February 28, 2007, while redesigned ₦50, ₦10, and ₦5 banknotes followed suit on September 30, 2009. Lower denomination banknotes were printed on polymer substrates for enhanced durability.
In commemoration of Nigeria’s 50th anniversary of Independence and 100 years as a nation, the Central Bank of Nigeria issued the ₦50 Commemorative polymer banknote on September 29, 2010, and the ₦100 Commemorative banknote on December 19, 2014.
cc: CBN
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