The naira is the official currency of the Federal Republic of Nigeria, one of the most prominent countries of West Africa. This decimal currency has a hundredths subunit called the kobo, and it is issued by the Central Bank of Nigeria, the sole currency authority of the country. The Naira was introduced in 1973 as a replacement for the Nigerian pound, which had yet to be decimalised. Although the naira was scheduled to be revalued at 1 new naira: 100 old naira in 2008, the revaluation was canceled. The central bank also planned to make the naira fully convertible at this time, but this action was also canceled. Foreign currency can only be purchased in Nigeria through weekly auctions that regulate the amount of other currencies in the country.
The Nigerian naira was first issued by the Central Bank of Nigeria in 1973 at a rate of 1 dollar: 10 Nigerian shillings. The naira is circulated through coins and banknotes, both of which are produced locally by the Nigerian Security Printing and Minting Company Ltd. Most kobo-denominated coins were removed from circulation in 2007, leaving only coins of 50-kobo, 1-naira and 2-naira denominations. Banknotes are printed in denominations of 5, 10, 20, 50, 100, 200, 500 and 1000 naira.
The Central Bank of Nigeria was established in 1959 with the objectives of issuing currency, maintaining foreign reserves and promoting the stability of the nation’s currency. In 1997, the central bank was placed under the supervision of the Ministry of Finance, but this decree was repealed the following year. The bank was granted full autonomy in 2007.
Nigeria has a mixed economy, but it is listed as an emerging market by the World Bank. Nigeria has a vast supply of natural resources at its disposal, and the infrastructure is well developed, supporting modern financial and legal systems as well as communication and transportation systems. The Nigerian stock market is the second-largest in Africa after South Africa. Analysts from Citigroup have predicted that Nigeria will experience the highest annual growth in GDP of any country in the world from 2010 to 2050. The Nigerian economy is heavily reliant on its oil reserves, which are the 10th largest in the world. Over 40 percent of the GDP and 80 percent of government revenue is from oil exports. In addition, the telecommunications industry in Nigeria is growing very quickly.