Nigeria is frequently referred to as the “Giant of Africa,” possessing the largest economy on the entire continent. It has also given rise to Nollywood, a renowned film industry that surpassed Hollywood’s revenue in 2009. As Nigeria’s financial strength and global influence grow, gaining insights into its currency becomes increasingly pertinent, particularly for tourists visiting the country.
Features of the Nigerian Naira (NGN) currency
The naira, abbreviated as NGN, is represented by the symbol ₦. It is divided into 100 kobo coins of smaller denominations.
The Central Bank of Nigeria (CBN) issues banknotes and coins. The coins in circulation have denominations of 50 kobo, 1 naira, and 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 characterized by their vibrant colors, which include yellow, orange, green, and blue. These notes feature prominent historical figures from Nigeria, such as Abubakar Tafawa Balewa, the first Prime Minister of Nigeria, and Nnamdi Azikiwe, the first President of Nigeria.
In 2009, Nigeria implemented a change in its currency design, introducing a polymer backing for smaller banknotes and a specialized paper backing for larger ones. This transformation not only enhances the longevity of the banknotes but also significantly reduces the risk of counterfeiting.
NGN cash shortage challenges in 2025
At the commencement of 2023, Nigeria encountered a severe cash shortage, prompting the authorities to initiate a transition from paper currency to a novel form of banknotes.
The Central Bank of Nigeria has announced that the issuance of updated 200, 500, and 1,000 naira notes, coupled with restrictions on substantial cash withdrawals, will contribute to the reduction of money laundering activities and facilitate the widespread adoption of digital payments.
Nevertheless, the rapid pace of the note replacement initiative has resulted in a shortage of new currency among commercial banks, leading to a disparity between demand and supply. Consequently, bank customers have expressed dissatisfaction regarding the limited cash withdrawal limits imposed and the high transaction fees associated with banking services.
Furthermore, digital payments in Nigeria have been plagued by frequent reliability issues, causing businesses to encounter difficulties in obtaining cash for goods and services. This situation has engendered a clandestine market where individuals engage in the illicit sale of newly issued banknotes.
In response to these challenges, experts have advocated for a gradual and phased approach to the replacement of old banknotes with new ones.
