The Nigerian naira, for over many decades now, has had a chequered history of metamorphosis. Like the interesting stages that a butterfly’s egg passes through, before eventually evolving into a good-looking, colourful adult butterfly; the Nigerian naira, has passed through various stages – before now – involving features changes, transformations, re-designing, and withdrawals of some denominations at certain periods, as well as the introductions of new currency notes of higher denominations, at other periods in time.
In the history of Nigeria, as a sovereign, independent nation, today, one can categorically state that, what some of our parents, grand-parents, and great-grand-parents spent and used as legal tender-over four to five decades ago, is quite different from what we are spending now in contemporary 2022-2023, and beyond, as Nigeria’s legal tender. The Nigerian naira, was introduced in in the first part of the year, 1973, at an exchange rate of 1 British Pound equaling 2 Nigerian naira.
Basically, Nigeria has eight currency note denominations. These are, the five naira (#5) note, the ten naira (#10) note, the twenty naira (#20), fifty naira (#50) note, and then the one hundred naira (#100) note. Others are the two hundred naira (#200) note, the five hundred naira (#500) note, and then of course, the one thousand naira (#1000) currency note denomination. Incidentally, the Nigerian one thousand naira (#1000) currency note denomination, is the country’s highest currency note as an existent national legal tender.
(Interestingly, when added together-arithmetically-all of Nigeria’s array of currency notes denominations, amount to #1,885 (naira). (Calculate the entire currency notes denominations available as legal tender in Nigeria, if you want to, in order to arrive at this fact and truth).
The currency notes, or money denominations of any country-or coins, (that is, for any country-or nation that uses metal coins as a legal tender), are “prime”, in the affairs of such a nation. Currency notes, always serve as avenues for countries and nations of the world, to honor her heroes, legends, peculiar citizens and indigenous, notable achievers, that have contributed in no small measure to the greatness of such a country-or nation. Nigeria, as an independent, sovereign nation, is no exception to this trend.
Almost all the entire currency notes denominations which Nigeria uses as legal tender, affirms the afore-mentioned fact. The five naira (#5) currency note, carries the image and likeness of Sir Abubakar Tafawa Balewa.
The ten naira (#10) note dots the portrait of Alvan Ikoku, while the twenty naira (#20) note, has the image and likeness of General Murtala Muhammed, embossed on it. Similarly, the one hundred naira (#100) currency note, dots the image of Chief Obafemi Awolowo.
The two hundred naira (#200) note, carries the image of Sir, Ahmadu Bello-the Sarduana of Sokoto, while the five hundred naira (#500) currency note denomination, proudly dots the engraved portrait of Dr. Nnamdi Azikiwe, one, time Governor-General and civilian President of Nigeria.
Then, there is last, but definitely, not the least, among Nigeria’s array of currency notes denominations, the one thousand naira (#1000) note, which carries the dual images and portraits of Alhaji Aliyu Mai-Bornu, and that of Dr. Clement Isong. The former and latter individuals, were in time past, in the history of Nigeria, central bank governors at interjected periods.
The main point of focus in this writing, is: “The Nigerian Naira Versus Other Currency Notes: Possible ways to “Shore-Up” The Value of an Already De-valued Naira”. I feel that this piece of writing, is relevant at this point in time, because the magnitude at which the value of the Nigerian naira is “dwindling”, in comparison to the currency notes of other nations and countries in the world, has become alarming, and very worrisome. Imagine that, in time past, in the history of Nigeria, there was a time that the Nigeria naira, exchanged for #1, to $1.
However, as at the last quarter of year 2022, alarmingly, the exchange rate of the naira to the currency notes of other nations, oscillated between $1, equals to #443, one British Pound equals about, #543 (+), and the Euro sold for one Euro, equaling up to #463 (+). These exchange rates, mind you are at the inter-bank rates.
At the parallel, and or black market exchange rates; the amounts are by far more, higher in value in comparison to the naira. For instance, as at the last quarter of year 2022; one dollar ($1) sold at times, for as high as seven hundred and eighty naira (#780), at the black market.
In comparison to the currency notes and or legal tenders of other nations in the world; the naira is currently, glaringly depreciating in value, when pegged in value to the other currency notes of other nations. For instance, financial facts and statistics as at the last quarter of the year, 2022; the exchange rate of the Nigerian naira to the South African Rand, that of the Canadian Dollar, and the Swiss Franc, has more monetary value than the Nigerian naira.
Then maybe, an investigative ‘peep’ into the exchange rate value between the Nigerian naira, and the Chinese Yuan, Saudi Arabian Riyadh, Kenyan Shillings, and neighboring Ghanaian Cedi, will readily reveal that the value of the naira, has been tumbling down over the months, years, and indeed decades, in terms of monetary value in comparison to the purchasing power of the currency notes of the afore-mentioned nations and countries.
It appears that the Nigerian naira, has more monetary value, nowadays, only over the CFA, which is a common currency note, used and spent as a legal tender, in Francophone nations in the coast of West Africa, like Benin Republic, Togo, Cote-de-Voire, Senegal, Cameroon, etcetera.
The pathetic, and abysmal “low” to which the value of the Nigerian naira, has ‘tumbled down’, in comparison to the currency notes of other nations in the present world, is alarming, and calls for immense concern in the economic and monetary circles in the country.
The Central Bank Governor of Nigeria, Mr. Godwin Emefiele, in recent times, has stated that, the reason for the high rate of foreign currencies to the Nigerian Nigeria, is because of the massive exodus of Nigerian students that are travelling abroad to study, or for the sole purpose of “scholarly tourism”. Irrefutable as this proffered claim may seem; the downward value of the Nigerian naira, has become something that should give citizens in the country genuine cause for concern.
Urgently, expediently, something needs to be done, in order to “shore up” the value of an already ‘de-valued’ naira, both at the capital market, and at the international market, and at the economic, monetary circles, in the world.
Weighed down by the current reality of the dwindling value of the Nigerian naira-in comparison to the currency notes of other nations; relevant authorities in Nigeria, may consider embarking on these ameliorative measures, with a view of “shoring Up’’ the value of the naira, in months, and indeed, years to come.
In an attempt to do this, Nigeria, as a country, can learn-or take a cue-from developed nations in the first world, like USA, Great Britain, France, Germany, Canada, as well as other European nations, as to how citizens of the afore-mentioned nations, handle their currency notes. In the said mentioned nations; you’ll rarely see citizens of such nations spraying the currency notes of their countries, publicly, and or ‘trampling’ on such scattered currency notes, at parties, funerals, happy occasions and in music videos, as the case is, commonly in Nigeria.
This suggestion may seem puerile and laughable, but have you made out time to ask yourself, reflectively, why white people hardly spray their nations’ legal tender at parties, and happy occasions, talk less of ‘trampling’ on the currency notes of their countries of origin, at any given time, for whatsoever reason? In Nigeria, many citizens, are guilty of ‘abusing’ the naira, in this particular way, or in one other way.
In Nigeria, a great percentage of the currency notes that people, resident in the country, come in daily contact with, are currency notes that are dirty, torn, stained, mutilated, or worn out.
This is because many of us do not take due care of our naira notes whenever they are in our custody. As patriotic citizens, we must not tear the naira note into pieces. We must also not mutilate it. We must not deliberately stain it.
Then, especially, we must refrain from spraying of currency notes at ceremonial occasions-and subsequently, very likely, trampling on them. Not many people-citizens especially-may be aware of it, but spraying of currency notes on people, celebrants, musicians and dancers, as well as on drummers (etcetera), at any ceremonial occasion-which is a common practice in different parts of Nigeria-is an abuse of the naira.
There exists stipulated, punishment for maltreatment of the nation’s currency, which appropriately should be up-held under the National Ordinance Act. However, such punishments, are waived-liberally-for offenders at the spot of offence. The use of wallets, purses, waist-pouches, and boxes, as well as safes and private vaults-to keep currency notes, for easy access, and use-without mutilating or staining them during trade and business transactions, will go a long way in respecting the naira, which is Nigeria’s legal tender.
Another initiative that appropriate monetary authorities in Nigeria, can also embark upon with a view of “shoring up” the value of the Naira, is the re-introduction of metal coins as legal tender, also in Nigeria. This proffered recommendation, if implemented, is sure to “stir-up” many monetary advantages for the Nigerian economy. For instance, statistics abound, which proves that metal coins are less expensive to mint (and churn out, as legal tender), than the printing of currency notes.
Then also, metal coins, if re-introduced as legal tenders in the country, can withstand attempted acts of tearing, staining, crumpling, defacing, and mutilating, etcetera, which printed paper currency notes, are easily susceptible to.
Metal coins-as legal tenders-will do well also, in rural areas and in many professional circles in the country, where the paper-naira-note(s), could easily become ‘maltreated’. Metals also abound in many places in Nigeria. Thus, the raw materials, with which to ‘mint’ the proposed metal coins, can be easily procured, or sourced.
Then also, in this country Nigeria; I really think that there should be a law, or a government edict, banning the spending of foreign currencies-of any type-at political parties’ rallies, and political parties’ primary elections. Political parties’, primary elections-especially, Presidential primary elections in Nigeria-are always occasions where foreign currencies, particularly the USA Dollar, is spent liberally and openly, with a view of ‘buying’ delegates votes, before a particular aspirant clinches the coveted presidential ticket of any renown political party.
I don’t think that such a practice by Nigerian politicians, that want to govern Nigeria, is proper. Neither, is it patriotic on their own part. This said practice, devalues the Nigeria naira, and makes the currency notes of other nations expended at such primary election rallies, to be ‘un-duly’ “golden”, more than the currency notes of the country that these politicians want to preside over. If money must be spent at political parties’ primary elections in Nigeria; let money spent, be the Nigerian naira.
In way of concluding, another action that I feel that the Central Bank of Nigeria should embark upon, with a view of shoring up the value of the naira, is by phasing out-with time-some of Nigeria’s currency notes denominations that cannot purchase, buy, or afford anything again, out-rightly in the country, in contemporary times.
For instance, in Nigeria nowadays, five naira (#5) and ten naira (#10), can barely purchase any good or product, in the country. Things as common as a pencil, a biro, or small biscuit, are all above the rate of five naira (#5). One sachet of water-popularly called, ‘pure water’-sells nowadays, in Nigeria, for twenty naira (#20), for one single piece. There’s also barely any standard sweet, or candy product that sells for less than twenty naira (#20), these days, in Nigeria.
This, being the true situation in Nigeria; I am of the opinion that the currency notes that should be in existence in the country-as legal tender-at every given time, should be in tandem (somehow), of the least prices of the ‘minutest’ goods, as well as products in the Nigerian market.
Then also, printing most-if not all of Nigeria’s naira notes in polymer notes, is another initiative that’ll make people-both citizens and foreigners-like the outlook of Nigeria’s money, or rather, legal tender. Any currency notes printed in polymer notes, always tend to make such currency notes, attractive, durable, and difficult to mutilate, stain, and or squeeze.
I also feel that stringent laws should be put in place, in Nigeria, where-by, foreigners, coming into the country, and wanting to buy goods, and or any products from Nigeria, should be compelled to make payments in the national currency of Nigeria, rather than in any foreign currency. Such a law, particularly, should be enforced at places like, the international airports of Nigeria, sea ports, custom borders, and the nation’s export processing zones, etcetera.
Read also: The Nigerian consumers and naira depreciation
The economy and the buoyancy of every nation’s trade and business, in the whole wide world, is hinged on money. Other than this truth; what makes any country’s economy stable, is the value of its money-or legal tender-in comparison to the currency notes (and coins) of other nations.
In this light, the fact the Nigerian naira, over the years, have been losing much of its value-in comparison to the currency notes of other nations, and regions in the world, is a call for ameliorative action on the part of the APEX BANK in Nigeria. In this light, if the C.B.N., and appropriate financial authorities, implement the above proffered recommendations, and other similar measures; the value of the naira, just might “shore up” in its monetary value, in comparison to the currency note, or legal tenders of other countries.
In the continent of Africa, and especially in the coast of West Africa, Nigeria-as a nation, occupies a position and enjoys a status that is reasonably “revered”, among the committee of nations. Nigeria, have enough achievements, and multiple achievers that glaringly, tend to make other nations envious of the country.
This, being the case; Nigeria-via its relevant authorities-really must find ways of “shoring up” the value of the Nigerian naira, in comparison to the currency or money of other nations, African nations, particularly. The most populous black nation on the surface of this earth, with glaringly, the biggest economy in Africa, deserves a legal tender, that is strong, competitive, and ever reliable in monetary value to the currencies of other nations.
As a concerned citizen that is concerned about the economic well-being and buoyancy of the country; my earnest prayer is that, a time will not dawn when one dollar ($1), will sell for as high as two thousand naira (#2,000) in Nigeria.
May God save Nigeria, from “ECONOMIC KWASHIORKOR”!!
Adaofuoyi is a guest writer on Abuja
