Nigerian Naira

The Naira is the official currency of Nigeria. It is subdivided into 100 kobo. The Central Bank of Nigeria is the monetary authority of Nigeria and issues the currency. The Naira is pegged to the US Dollar at a rate of N305 per US$1. The Naira was introduced on 1 January 1973, replacing the Pound Sterling at a rate of 2 Naira = 1 Pound Sterling. The Naira was originally divided into 100 kobo but this was later changed to 100 units. The Naira has been subject to periods of high inflation since its introduction. In 1994, the Naira was devalued from N22 per US$1 to N197 per US$1. This was followed by a further devaluation in 1999 to N360 per US$1. The Naira was again devalued in 2016 to N305 per US$1. The Naira is currently one of the weakest currencies in Africa. It has been battered by years of mismanagement, corruption and inflation. The current situation is made worse by the fall in oil prices, which is Nigeria's main export. The Naira is expected to continue to lose value in the coming years. This will make it increasingly difficult for Nigeria to import goods and pay for its external debts.