The currency of Nigeria is the Nigerian naira, written with the symbol ₦ and abbreviated internationally as NGN. It is the official money used for everything from market stalls in Kano to tech salaries in Lagos, and it is issued and managed by the Central Bank of Nigeria (CBN). Each naira is divided into 100 kobo, although decades of inflation have made the kobo effectively obsolete in everyday transactions.
The Naira at a Glance
The naira (pronounced "NYE-rah") is one of the most recognisable currencies in West Africa, reflecting the scale of Nigeria's economy and its population of more than 220 million people — the largest in Africa. Here are the essentials:
- Name: Nigerian naira
- Symbol: ₦
- ISO code: NGN
- Subunit: kobo (1/100 of a naira, rarely used)
- Issuing authority: Central Bank of Nigeria (CBN)
- Introduced: 1 January 1973
The ₦ symbol — a capital "N" crossed by two horizontal strokes — was created specifically for the currency and is unique to Nigeria. As of 2026, the naira trades at roughly 1,500 to the US dollar, though the rate has been volatile in recent years.
From the Pound to the Naira
Nigeria gained independence from Britain in 1960 and initially continued using the Nigerian pound, a holdover from the colonial era. In 1973 the country decimalised its money and replaced the pound with the naira, becoming one of the first African nations to abandon the old British pounds-shillings-pence system in favour of a decimal currency. The name "naira" is widely understood to be a shortened form of "Nigeria," and "kobo" likewise echoes the English word "copper." The switch made calculations simpler and gave the young nation a distinct monetary identity separate from its former colonial ruler.
Banknotes and Coins in Circulation
Most everyday cash in Nigeria comes in the form of banknotes, since coins have largely fallen out of use due to their low value. The main denominations are:
- ₦1,000 — the highest-value note, typically purple
- ₦500 — blue
- ₦200 — green
- ₦100 — red
- ₦50 — multi-coloured
- ₦20, ₦10, ₦5 — lower-value notes, some printed on polymer
In late 2022 the CBN redesigned the ₦200, ₦500, and ₦1,000 notes, partly to fight counterfeiting and to discourage the hoarding of cash. The rollout was rushed, and a shortage of the new notes triggered a nationwide cash crunch in early 2023 that disrupted businesses and daily life until the old notes were allowed to remain legal tender. Nigerian banknotes feature portraits of national figures and images of cultural and economic landmarks, celebrating the country's heritage.
A Currency Under Reform
For much of its history the naira operated under a managed exchange-rate system, with an official government rate that sat far below the rate available on the parallel ("black") market. This gap created arbitrage, distortions, and a thriving unofficial currency trade. In 2023 the authorities moved to liberalise the system, allowing the naira to float more freely against the dollar. The result was a sharp devaluation that made imports more expensive and fuelled inflation in the short term, but the reform was also designed to attract foreign investment and bring transparency to the foreign-exchange market. Nigeria's economy — one of the largest on the continent — is driven by crude oil exports, agriculture, and a fast-growing technology sector centred on Lagos, sometimes nicknamed the "Silicon Lagoon." You can learn more about the country's economy and regions in our nigeria country guide.
Using Money as a Visitor
Nigeria remains largely a cash-based society, though digital payments are expanding quickly. Practical tips for travellers and newcomers include:
- Carry US dollars or euros to exchange at licensed Bureau de Change (BDC) offices, which often offer better rates than airport counters.
- ATMs are common in cities like Lagos and Abuja but frequently impose low per-withdrawal limits.
- Mobile money and bank-transfer apps are now widely used by locals, even for small purchases.
- Keep cash secure and avoid displaying large sums in public.
Lagos can be expensive by regional standards, so budgeting in advance helps. Card acceptance is growing in hotels, restaurants, and larger shops, but smaller vendors and markets still expect naira in cash.
Frequently Asked Questions
What is the symbol for the Nigerian naira?
The naira uses the symbol ₦, a capital "N" with two horizontal strokes through it. Its three-letter ISO currency code is NGN.
How many kobo are in a naira?
One naira is divided into 100 kobo. However, because of inflation over the decades, kobo coins have very little value and are rarely seen in circulation today.
Who controls the Nigerian naira?
The Central Bank of Nigeria (CBN) issues the naira and sets monetary policy. It is responsible for printing banknotes, managing inflation, and overseeing exchange-rate policy.
Can I use US dollars in Nigeria?
The naira is the only official currency for everyday transactions, but US dollars are widely accepted for exchange and sometimes for large or international payments. You will generally need to convert dollars to naira at a bank or licensed Bureau de Change for local spending.