nairas

The naira, plural nairas, is the official currency of Nigeria. It is denoted by the symbol ₦ and the ISO code NGN, and it is subdivided into 100 kobos. The Central Bank of Nigeria (CBN) issues the nation’s banknotes and coins and oversees monetary policy. The naira serves as the primary unit of account in Nigeria and is used for pricing, wages, and everyday transactions across the country.

History and issuance. The naira was introduced on January 1, 1973, as part of Nigeria’s move to decimalize its currency, replacing the Nigerian pound. This transition aligned the country with a decimal system and standardized monetary units across the economy. Over time, the CBN has issued various banknotes and coins and undertaken reforms to address counterfeiting, inflation, and changes in payment habits.

Economic role and usage. In daily life, prices, salaries, loans, and financial contracts are typically expressed in naira. The currency’s value has fluctuated in response to macroeconomic conditions, monetary policy, and exchange-rate regimes. Cash circulation coexists with growing adoption of digital payments, mobile money, and card payments, though cash remains common in many parts of the country.

International context. The naira is primarily used within Nigeria and is not freely convertible on all international markets. Foreign exchange is generally managed through official channels and licensed dealers. Cross-border transactions involving the naira are typically settled through banks and official exchanges, with exchange rates influenced by broader economic policy and market conditions.