When Did Nigeria start Using Naira And Kobo (All The Details You Need To Know). Check This Post For Substantial Information On When Naira And Kobo Became A Legal Tender In Nigeria.
Naira and kobo is the official Nigerian currency, we all know that no other currency is accepted as legal in Nigeria. Hence, this article has been put together. If you are interested in knowing all the details of when Nigeria started using Naira and kobo, then you are on the right page. The aim of the article is to give you first-hand knowledge s to when Nigeria started using Naira and kobo and what currencies had been used before then. Let’s get started.
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Table Of Contents
What form of money or currency was Nigeria using before Naira and kobo?
We all know that trade is a very important aspect of a community or a group of people. Because of the limited resources and unlimited want of man, man has used trade right from time to get what he or she does not have in exchange with what he or she has.
The earliest form of trade existed in the pre-colonial Nigeria when there was no legal tender. This form of trade was called “barter” and is popularly known as trade by barter today. Trade by barter simply involves one giving out an item which is not considered as needed for the individual in exchange for something the individual wants at that moment.
This is how trade by barter works, for example, if I want to get chicken and I do not have chicken to eat but I have rice and I do not need it or I have surplus, I can exchange rice for chicken from another individual that wants to eat rice.
We also had a time in the pre-colonial period of Nigeria when cowries were used as a form of money. However, this was abolished by the advent of the colonial masters in Nigeria. Everything balls down to the fact that different people and different cultures in Nigeria had a way of trading.
When the colonial masters then came to Nigeria, they introduced pounds as a form of legal tender and this was even used some years even after Nigeria’s independence.
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When did Nigeria start using Naira and Kobo?
Nigeria started using Naira and kobo on 1st January 1973. Naira and kobo is Nigeria’s indigenous currency and it was issued by the central bank of Nigeria, when this was issued, the pounds sterling that were issued by the West African currency board which Nigeria was using before this day was withdrawn. It should be noted that this was done during the rule of General Yakubu Gowon.
The NGN is used to signify Naira while “K” is used to signify kobo. It should be known that kobo is smaller than Naira and that 100 kobo makes one naira. Then, there were legal tender in notes and also legal tender in coins. Only the 1 naira was in note and the one kobo, 5 kobo, 10 kobo and 25 kobo were all in coins.
Years passed by and all these things have evolved as we do not have active coins anymore and the highest denomination we have in Note is the one thousand naira note.
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