History of Nigeria's Currency: Shillings, Pounds, and the Birth of the Naira
- The Nigerian currency, naira, has a rich history that precedes the country's independence on October 1, 1960
- In this article, Legit.ng explains the first means of payment in Nigeria, the introduction of some of the banknotes and why their colours were changed
- The article also spotlights the name of the past Nigerian leader whose picture first appeared on the naira note
Before Nigeria's independence on October 1, 1960, and even during the earlier period of colonialism, various materials or goods were used as media of exchange, payment, and settlement of debt. Among these were salt, beads, cowries, and many others.
Every country in the world has its history, including the year its currency was adopted and the series of changes made to it.
Source: Getty Images
History of Nigerian naira notes
In this article, Legit.ng focuses on Nigeria, particularly what was used as a means of payment before and after independence up to the present, as all these make up the history of the Nigerian currency.
According to information from the Central Bank of Nigeria (CBN), CNN explained that the history of the first currency in Nigeria can be traced back to the 18th century, when the country was still under colonial rule.
Shillings and Pence
In 1880, the Central Bank of Nigeria revealed that Shillings and Pence were adopted as the first currency of Nigeria, serving as legal tender for a long time.
However, Nigeria as we know it today wasn’t called Nigeria in 1880; it was a colony or area under British control. Hence, it is safe to say that Shillings and Pence were introduced by Britain in West Africa.
The Shillings and Pence had denominations, all of which were distributed by the Bank for British West Africa until 1912, when a new currency was introduced.
History of Pound and Coins in Nigeria
While the shilling continued to be a means of payment, the West African Currency Board (WACB) in 1912 introduced a new, higher currency called the Pound.
This currency was introduced to some countries under British control, namely Ghana, Sierra Leone, the Gambia, and a few others.
The shilling was in the form of coins, while the pound was in the form of banknotes. The highest pound was £1, while the shilling was the highest coin denomination.
Source: Getty Images
Federal Republic of Nigeria banknotes
A few months after the WACB introduced the pound, a new currency was brought into place, this time with the name of the country as it was about to gain independence.
Ahead of Nigeria's independence, a currency was introduced in 1959 with the inscription "Federal Republic of Nigeria." This note remained in circulation until 1968.
A change in currency in 1973
The federal government announced a change in the Nigerian currency system in 1973, converting from pounds to a decimal system. The pounds, which used to be £1, were withdrawn and ceased to exist.
The naira was introduced as the new currency in Nigeria. At the time of introduction, 1 naira was equal to 1 shilling.
Introduction of the 20 Naira Note
While the highest banknote was just 10 naira, a new currency later became the highest in the country.
On February 11, 1977, the 20 naira (N20) note was introduced to drive the economy and provide better and more efficient transactions.
The 20 naira banknote was the first in Nigeria’s history to feature the image of a Nigerian leader, General Murtala Ramat Mohammed.
On July 2, 1979, new banknotes of three denominations were introduced by the Nigerian government, including N1, N5, and N10.
In 1984, the color of all banknotes, except the 50 naira note, was changed to address certain economic problems.
Source: Getty Images
Introduction of N100, N200, N500, and N1000
To promote a better and faster payment system, new notes were introduced in later years. The N100 note was introduced in December 1999, followed by the N200 note in November 2000.
In April 2001, the N500 note was introduced, and finally, in October 2005, the N1000 note became the highest banknote in Nigeria up to the present.
It is important to note that in 2022, the colors of the three highest banknotes, ₦1000, ₦500, and ₦200, were changed to address issues of hoarding, counterfeiting, and banknote shortages.
In a similar story, Legit.ng reported that some Nigerians who kept money at home saw it destroyed. In one video, a man took a metal box with damaged naira notes to the bank, hoping to save some of the money. In another video, bundles of N1,000 notes kept in sacks were ruined when the owners opened them.
Old naira notes from 2007 spark reactions
Meanwhile, Legit.ng recently reported that a young Nigerian man attracted attention for the old naira notes his late grandfather left behind. He asked a popular bank on Twitter if they would exchange the notes, which are older than the current notes, for new ones.
The bank gave a funny reply, but many people showed interest in buying the notes, which were last in circulation in 2007.
Proofreading by James Ojo, copy editor at Legit.ng.
Source: Legit.ng
