The Nigeria nairas is an official currency of Nigeria with currency code CBN and symbol ₦. The money is subdivided into 100 kobos. The Central Bank of Nigeria is an only government body of issuing national currency throughout the Nigerian Federation. The Currency Operations Department of the Central Bank of Nigeria controls the supply of money in the Nigerian economy to ensure price and monetary stability.
On 1st January, the Nigeria nairas was introduced as an official currency by the replacing the pound at rate 2 nairas = 1 pound. Extensive inflation has happened in Nigeria. The Central Bank of Nigeria struggled to control the rate of inflation below 10%. In 2011, the Central Bank of Nigeria increased the interest rate from 6.25% to 12%. On 31st January 2012, CBN decided to keep the interest rate at 12% to minimize the influence of inflation due to the drop in fuel grants.
The first series of Nigeria nairas coins were introduced in denominations of ½, 1, 5, 10 and 25 kobo. The currency of ½, one was minted only that year. The second series was issued on 28th February 2007 in denominations of 50 kobos, 1 and 2 nairas. The first series of banknotes was introduced on 1st January 1973 in denominations of 50 kobos, 1, 5, 10 and 20 nairas. The banknote of 50 nairas was added in 1991, followed by 100 nairas in 1999, 200 nairas in 2000, 500 nairas in 2001 and 1000 naira on 12th October 2005.
The current series of Nigeria nairas banknotes and coins generally in circulation include:
Banknotes ₦5, ₦10, ₦20, ₦50, ₦100, ₦200, ₦500, ₦1000
Coins 50 kobo, ₦1, ₦2
Due to extensive inflation in Nigeria, almost all coins are valueless now. Each currency has a tremendously low value.