The International Monetary Fund (IMF) has defined money as “a store of value, which means people can save it and use it later – smoothing their purchases over time,” or “a unit of account, that is, it provides a common base for prices,” and “a medium of exchange, something that people can use to buy and sell from one another.” The concept of money did not just erupt form the blues so we will like to take you on a journey down memory lane to figure out the history of money in Nigeria. Pre 1912 In the beginning, the system of exchange of goods and services was through the barter system. This system involves people giving what they have for what they want. For example, I have plantain but what I want is yam. What I would do is to go out and look for someone who has yam and exchange with the person. As much as this form of trading brought about a form of organisation to exchange of goods, it had its lapses. For me to get the yam I want, I need to go around and look for someone who has yam and also wants my plantain if not, we cannot exchange. It made business slow in a way and there was also the problem of knowing what quantity of the goods I have that will be equal to the quantity of goods I want. How many bunches of plantain will gives me the same value as the tubers of yam? As the years went by, mainly before 1912, different commodities were picked out to use as a medium of exchange. Commodities such as tin, cattle, farm products, feathers, iron, salt, seeds of plants, textiles etc. were used for internal trades while commodities such as cowries, iron, copper bars, manila, textiles, gin, tobacco etc. were used in exchange for external trades. Among all these commodities, the use of cowries stood out and was in use for a longer period of time because it was durable, easy to count, in small sizes and easy to carry around.

1912-1959 During this period, there was the emergence of a financial institution by the name Western African Currency Board (WACB). This institution came to life in 1912 and they organised and monitored the circulation of money. The money in circulation during this period was British West African Pound. These were in different denominations as seen in the pictures below. 1959-1962 The British West African pound was used till 1958 and on the 1st of July 1959, the Central Bank of Nigeria introduced new notes known as the Nigerian Pound and the West African currency notes were withdrawn. 1962-1968 (Legal Tender Status) It was said that the Nigeria Pound was misused and as a result, a new set of currencies were introduced on 1st of July 1962. The new currencies gained Legal Tender as it also showed the independence the nation had gotten. The Nation began to use its own money but the notes were once again changed in 1968 as a result of the war that took place during that period. 1971-2005 On the 31st of March 1971, the then Military Head of State, General Yakubu Dan-Yumma Gowon, made the announcement that Nigeria will begin to use Decimal currency starting from the 1st of January 1973. Deliberations were made and it was agreed that the main currency will be called Naira represented by N and the minor currency will be called Kobo represented by the K sign which will replace the £. As a result of this, a committee was set up in 1962 to look into the details of the creation and they submitted their reports in 1964. The new Naira was equivalent to 10 shillings while 100k will be equal to N1. The change took place in 1973 with the introduction of the Notes which came out in 50K, N1, N5, and N10. The twenty Naira note was issued in 1977. This became necessary to accommodate the growth of the economy.  It became the first note to carry the portrait of a Nigerian. The picture of General Muritala Ramat Muhammed was placed on the note and was used to commemorate the 1st year anniversary of his assassination. Subsequently, the other existing notes were changed in 1979 and it bore the portraits of three other eminent Nigerians that were also declared heroes. They were Herbert Macaulay, Alhaji Tafawa Balewa and Alvin Ikoku. In 1991, the 50k and N1 were turned into coins. In that same year, the N50 note was launched.

Subsequently, the 100, 200, 500 and 1000 notes were introduced in December 1999, November 2000, April 2001 and October 2005 respectively. 2007-2009 In 2007, February 28 to be precise, the Central Bank of Nigeria re-issued some Naira notes as a result of some economic reforms. The notes that were re-issued changed form from the normal paper to the polymer. The existing coins were redesigned and a new coin denomination, N2 was introduced.

2009 to Date

There was an unveiling of the commemorative N100 on the 4th of November 2014 to mark the centenary celebration of Nigeria and is consistent with best global practices for Central Banks around the world. This, however, did not make the old one fizzle out; they are both being used side by side.  References www.imf.org www.guardian.ng www.cbn.gov.ng www.nigerianinfopedia.com www.schoolmattazz.com www.shells-of-aquarius.com www.africanbanknotes.com www.wikiwand.com www.ngyab.com www.en.wikipedia.org www.atsnotes.com www.currencies.wikia.com www.connectnigeria.com www.omgvoice.com www.facts.ng