Quick Facts About Nigerian Naira


1.    Naira and kobo are Nigeria’s official currency and legal tender.

2.    The currency was introduced in Nigeria on 1st January 1973 to replace the British Pounds and Shillings to reflect the country independent status.

3. The currency structure comprises of three coin denominations (50k, N1 and N2), eight banknote denominations (N5, N10, N20, N50, N100, N200, N500 and N1000).

4.    The N20, N50, N100, N200, N500 and N1000 banknotes were introduced in 1977, 1991,1999, 2000, 2001 and 2005 respectively.

5. ‘Naira’ was derived from the word ‘Nigeria’ by the late nationalist, Obafemi Awolowo.

6.The currency is often abbreviated as ‘NGN’ and depicted with letter ‘N’ having double strikethrough ‘N’

7.Central Bank of Nigeria (CBN), pursuant to the CBN Act is the sole issuer of legal tender currency in Nigeria. Consequently, it is unlawful for any individual or establishment to print or counterfeit Nigeria currency. The CBN also regulates the volume of money supply in the economy to ensure monetary and price stability.

How to Spot Fake Naira notes

8.    Look out for the slim thread that runs from top to bottom. In some notes it looks like silver or golden foil. This feature is difficult to counterfeit as it is embedded on the banknote.

9.  Check for the following water marks; ‘CBN’, images of the portrait, the amount and in some cases the coat of arm.

10.  Use mercury bulb. This appear to be the best method and it is often employed by commercial banks to spot fake banknotes.

11.In the case of 100 naira, check out for and scan the QR (Quick Response) barcode on the face of the banknote with your mobile or any digital device. It will tell the centenary story of Nigeria. If the bar code does not bring up any detail, then it is fake.

Prominent Figures on the Naira

12.  Sir Abubakar Tafawa Balewa - 5-naira note

13.  Alvan Ikoku- 10-naira bill

14.  General Murtala Ramat Muhammad - 20-naira bill

15.  Chief Obafemi Awolowo- 100-naira bill

16.  Ahmadu Ibrahim Bello - 200-naira bill.

17.  Nnamdi Benjamin Azikiwe - 500-naira bill.

18.  Mallam Alijy Mai-Bornu and Dr. Clement Nyong Isong - 1000-naira

Abuse of the Naira

19.  Spraying: it is against the law to spray the Naira notes at occasions. Although this law is often observed in breach than compliance, nevertheless, it is still in force in Nigeria

20.  Stepping: it is against the law to dance or stamp on the Naira banknotes

21.  Writing:  writing on banknotes is a crime. Beware!

22.  Stapling: it is against the law to staple banknotes as the pins can cause corrosion of the banknotes

23.  Mutilation: it is also an offence to mutilate the naira notes

24.  Tearing: it is against the law to tear banknotes

25.  Rejection: It is against the law to reject or refuse to accept the naira as a means of payment.

26.  Soiling: it is against the law to deface or stain the banknotes with oil or ink.

27.  Sale: It is also an offence for any to hawk, sell or trade the naira. Many Nigerians including Point of Sale (PoS) terminal operators seems to be ignorance of this provision. They explained that the reason they increased the charges for PoS transaction is because of the high cost of purchasing the naira from the bank. This assertion is self-implicating.

It is important to note that for the offences listed above, the offender on conviction, shall be liable to a fine of N50, 000.00 or six-months’ imprisonment. This fine is ridiculous! The Act should be amended to increase the fine.

 

 

 

 

Nosakhare Okuonghae

Legal Information Professional

nosakhareokuonsofficial@gmail.com

+234-9156497843

 

 

 

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