An overview of the features of cash (NGN) in Nigeria
Nigeria is sometimes referred to as the "Giant of Africa" — it has the largest economy in the entire continent and spawned the so-called Nollywood (which earned more than Hollywood in 2009), a host of musicians and actors. As it grows in financial strength and global positioning, learning more about its currency makes sense, especially if you visit this country as a tourist.
Features of the Nigerian Naira (NGN) currency
The naira is abbreviated as NGN and has the symbol ₦. One naira is divided into 100 kobo coins of smaller denominations.
Banknotes and coins are issued by the Central Bank of Nigeria (CBN). The coins available in circulation have denominations of 50 kobo, 1 naira, 2 naira. Banknotes are issued in the following denominations:
- 5 NGN
- 10 NGN
- 20 NGN
- 50 NGN
- 100 NGN
- 500 NGN
- 1000 NGN
Nigerian banknotes are brightly coloured — they come in yellow, orange, green and blue. The money depicts prominent figures from Nigeria's history, such as the first Prime Minister Abubakar Tafawa Balewa, President Nnamdi Azikiwe, etc.
In 2009, Nigeria started using a polymer backing for small banknotes and a special paper backing for larger ones. This not only increases the life of the banknotes but also protects against counterfeiting.
NGN cash shortage challenges in 2023
At the beginning of 2023, the country faced a cash crisis. This led to the authorities' desire to replace paper money with a new type of banknotes.
The Central Bank of Nigeria has stated that the updated 200, 500 and 1,000 naira notes and restrictions on large cash withdrawals will help reduce money laundering and make digital payments more widespread.
However, replacing old notes is moving too fast, and commercial banks do not have enough new money to issue to customers, causing demand to outstrip supply.
Bank customers complain that they are allowed to withdraw very little cash, and in addition, they face high bank transaction fees.
As for digital payments, they, too, are often unreliable in Nigeria. Companies are stranded as customers cannot find cash for goods and services. The situation has created a "parallel market" — people illegally sell new banknotes.
Experts believe the authorities should allow more time to replace old banknotes with new ones gradually.
