Fotos and timeline of how naira notes and kobo don change through di years

By Karina Igonikan and Faith Oshoko

Di recent tori say Central Bank of Nigeria CBN wan redesign some currency notes of di Naira still be top news for di kontri.

Di CBN say dem go begin issue di new naira note for ₦100, ₦200, ₦500 and ₦1000 from 15 December, 2022 and so go gradually dey withdraw di currency wey dey in circulation.

Both old and new currency go be legal tender and circulate togeda until 31 January 2023 wen di existing currency go stop to be legal tender.

E add say di global best practice na for Central banks to redesign, produce and circulate new legal tender evri 5 to 8 years but di dem never redesign di Naira in di last 20 years so e dey long overdue.

Dis tori go chook eye inside how Nigeria naira don change through di years and wetin be di cost.

History of di currency

According to di CBN, different cultures for Nigeria bin dey use different items as means of exchange and dis include cowries, manila, beads, bottles and salt but afta di colonial ordinance of 1880, dem begin use shillings and pence as di legal tender currency for British West Africa.

Di units of coins wey Bank of England bin dey manage na one shilling, one penny, half penny and 1/10 penny and na one private bank, di Bank for British West Africa bin dey distribute am for British West Africa till 1912.

From 1912 to 1959, di West African Currency Board WACB issue di first banknotes and coins for Nigeria, Ghana, Sierra Leone and the Gambia. Di highest banknote denomination na one pound while one shilling coin bin be di highest coin denomination.

But na for 1st July, 1959 Central Bank of Nigeria come issue di first Nigerian currency banknotes and withdraw di ones wey di West African Currency Board WACB bin issue.

For 1st July, 1962, di currency change to reflect di kontri republican status so di banknotes wey bin get 'Federation of Nigeria' come get 'Federal Republic of Nigeria' for di top of di currency note.

For 1968, dem do anoda change sake of misuse of di currency banknotes during di civil war.

For January 1973, following di decision of di Goment to change from metric to decimal, di name of di Nigerian currency change to Naira and di major unit of currency wey used to be one pound £1 stop to exist and one naira wey dey equal on value to ten shillings become di major unit, while di minor unit na kobo; 100 kobo make one naira.

On 11 February 1977, CBN issue a new banknote with di value of twenty naira (₦20). Dis bin be di highest denomination dem introduce dat time as a result of di growth of di economy, di preference for cash transactions and say e dey more convenient.

Dis banknote na di first for Nigeria to bear di picture of a prominent Nigerian citizen, di late Head of State, Gen. Murtala Ramat Muhammed, and dem bring out dis nite on di first anniversary of im assassination as a tribute.

On 2 July 1979, CBN introduce new currency banknotes of three denominations wey be ₦1, ₦5 and ₦10 and dem bin dey di same size as di ₦20 note dem issue on 11 February 1977.

Timeline of times Nigeria don redesign her currency

In order to make di currencies easy to identify, Central Bank of Nigeria CBN use special colours for di various denominations and di notes carry di photo of three famous and respected Nigerians wey dem declare to be national heroes on 1st October 1978.

Di design for di back of di notes show different cultural aspects of di kontri.

How di new CBN policy go impact Nigeria at dis time?

Tilewa Adebajo wey be Economist explain say dis police go help CBN as a regulatory body for di economy know and control di amount of money wey dey in circulation.

"Wen you get dis kain significant amount of capital wey currently dey between N3.5 - 4 trillion naira, dat na di amount of money wey currently dey in circulation and 80% of dat amount no dey within di banking system and na dia di challenge dey.

How you go take control inflation, how you wan control di naira becos dis naira wey dey outside di CBN control go pursue money for di black market and dat na anoda big challenge CBN get."

Adebajo add say dis huge sum of money wey dey outside CBN control dey move around di economy system and some of dis money dey come through di banks and go out, so while di money dey dia, di money constantly dey revolve in and out of banks through cash over-di-counter withdrawals and also through ATM machines and dis dey attract cost to manage dis money so di CBN dey also spend a lot of money on dis one.

"You know say di CBN get 37 branches across di kontri and e get dedicated charter flights to fly money around di kontri to manage dia cash management so e dey extremely expensive to manage.

Then di volume of currency wey dey in circulation, dat is di amount of money dem dey print, already CBN dey spend close to N70-80billion on a yearly basis to renew di currency printing."

Di Economist add say dis redesign policy go also check counterfeiting, dat is to dey print fake naira as na anoda big problem.

"No be coincidence say dem no dey wait until after di elections so all dis money need to come back so dat all dis politicians wey dey hoard naira for election go need to bring out di money back into di bank system so dem fit get idea of dat side too.

So dat na anoda side to dis tin too wey you gatz factor in. So di timing need to be done very quickly odawise e go allow for too much room for pipo to try to change tins wey dem go continue dey use do counterfeit so by di 31 of January, all dat dey out of di way."

E say di CBN go destroy di old banknotes wey dem don retrieve, so dis way go give dem a better idea of di money wey dey in circulation as na dem dey print di new notes so dem know wetin dem dey exchange as dem dey see wetin dey come in as old notes and wetin dey go out as dem dey release di new notes.

For Rivers state based Business Journalist and economic analyst Ignatius Chukwu, pipo wey dey operate e-money, dey do transfers no go dey affected by di redesign policy but di target na pipo wey get trillions of money for dia bunker, wey dem wan use during elections for vote buying.

"So e go bad for dem becos if dem bring am out wahala, if dem no bring am out, e go become useless to dem like im bin dey for 1984 after di Umaru Dikko scandal wen politicians of dat time pack money. So di first tin dem do na to change di money so di money dem hide become useless to dem.

"I say e dey long overdue becos dis na one weapon wey we know say Buhari like to use fight corruption. As Head of State, im usually dey get intelligence reports about money wey dey wrong hands so I know say wetin Buhari do for 1984 wen im be military head of state, im go do am again. Di only tin I bin dey wonder na why im never do am up till now.

Buhari usually dey change di currency so dat di billions wey pipo hide under bunker go become useless as dem go dey forced to bring am out go submit for bank.” Chukwu tok.

Chukwu also observe say currency wise, Nigeria dey run a parallel economy, a black economy wey dey work very well with money wey di CBN no dey aware of and e dey outside dia control and outside dia records and dia statistical data.

E also tok about how di policy fit also be way to block kidnappers wey dey collect ransom in big-big amount of cash and dey run economy for kidnap wey dem dey use di ransom money buy more weapons, recruit soldiers for di Sahel and sub-saharan Africa, buy motorcycles and sophisticated guns like dat.

How much e go cost?

Chukwu say CBN get mandate to print money and dem get budget wey dem dey use print money evri year, wetin go change na di design so di money wey dem dey use for di printing na im dem go still use for dis one, e fit dey slightly higher sake of di new designs,

"So weda dem dey print di present design or di new design, dem go still use money print am as na dia responsibility and dem dey normally use more money print money.

E add say becos of online money transactions and exchange of money from one pesin to anoda dey mostly electronic, e mean say di quantity of cash dem need to print and give to pipo suppose reduce but becos dis money dey private hands and dem no dey come out, wen dem do dis exercise, e go provoke hidden money to come out and na dat time dem go calculate how much dem need to print.

So as pipo dey submit money, dem go calculate how much dem don submit and work out di volume to print so di concern na those pipo wey dey hoard di trillions of money, dem go bring am out or dem go allow am perish?