EVOLUTION OF THE NIGERIA NAIRA
Cowries, manila, beads, bottles, and salt amongst others were used by different cultures during the pre-colonial era of Nigerian existence as means of exchange for goods and services.
The name Naira was coined by the late Nationalist, Chief Obafemi Awolowo when he was the Federal Commissioner for Finance.
What is the story map of the naira? When were the different banknotes introduced? When did the redesign take place? And How did we get here?
On the 11th of February 1977 when Olusegun Obasanjo was the Head of State, a new banknote with the value of twenty nairas (₦20) was introduced in Nigeria. It became the highest denomination at the time as a result of the growth of the economy.
2nd July 1979, two years later, new currency banknotes of three denominations, namely ₦1, ₦5, and ₦10 were introduced. They appeared in distinctive colors for differentiation purposes.
Then 5 years later, in April 1984, when Major General Muhammadu Buhari was the Head of State, the colors of all the banknotes were changed, with the exception of the 50 Kobo banknote to arrest the currency trafficking prevalent at the time.
In 1991 during the leadership of Gen. Ibrahim Babangida, ₦50 notes were issued, while the 50 kobo and ₦1 notes were replaced by coins in 1991. So, the N50 came with two nicknames. At first, it was known as Better Life and later it became popular as WAZOBIA, am sure you are familiar with that word right? well, in case you are not, it’s a linguistic blending of the word ‘COME’ in Yoruba, Hausa, and Igbo Language.
Moving on, in December 1999 and November 2000, the ₦100, and ₦200 were introduced respectively. While the ₦500, and ₦1000 banknotes were introduced in April 2001, and October 2005 respectively. These were done in response to the expansion of economic activities and to facilitate an efficient payment system.
On 28th February 2007 when Chief Olusegun Obasanjo was president, the ₦20 was issued for the first time in a polymer substrate as part of the economic reforms.
This was followed by the redesign of the ₦50, ₦10, and ₦5 banknotes and their conversion to polymer substrate following the successful performance of the ₦20 polymer. Therefore, all lower denomination banknotes were now printed in the polymer substrate.
On the 12th of November 2014, the Central Bank of Nigeria issued a new ₦100 commemorative note to celebrate the centennial of Nigeria’s existence under the leadership of the former President, Goodluck Jonathan.
On 26th of October, 2022, Nigeria’s central bank under President Muhammadu Buhari led administration expressed the scarcity of the currency due to the high volume of the naira kept outside the banking system and being hoarded. On November 23, the newly redesigned notes of N200, N500, and N1000 were launched.
Due to the hardship being experienced by citizens in acquiring the newly redesigned notes, President Muhammadu Buhari extended the validity of only the old N200 banknotes as legal tender for another 54 days.

#DIFFUSE

BY: JENNIFER OGOR

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