The Nigerian Naira (NGN), symbolized as ₦, is the official currency of Nigeria, with the Central Bank of Nigeria (CBN) acting as the sole issuer. Understanding the historical exchange rates between the Naira and the US Dollar (USD) requires a look at various economic policies and events that have shaped its value over time.
Nigerian Naira Banknotes
Historical Context of the Nigerian Naira
The naira was introduced on January 1, 1973, replacing the Nigerian pound at a rate of £1 = ₦2. This transition marked Nigeria as the last country to abandon the £sd currency system in favor of a decimal system. The coins of the new currency were the first issued by an independent Nigeria.
Key Events Influencing the Naira-USD Exchange Rate
- 1973: Introduction of coins in denominations of 1⁄2, 1, 5, 10, and 25 kobo.
- 1984: Colors of all naira banknotes were changed to control money laundering.
- 1991: ₦50 notes were issued, and smaller coins were introduced.
- 2007: New coins were issued in denominations of 50 kobo, ₦1, and ₦2.
- 2008: A government plan to redenominate the naira at 100:1 was suspended.
- 2022-2023: Implementation of a policy to redesign and replace the highest denomination banknotes (₦200, ₦500, and ₦1,000), leading to a major cash crunch.
In 2022, the Central Bank of Nigeria (CBN) implemented a policy to redesign and replace the highest denomination banknotes: the ₦200, ₦500, and ₦1,000 notes. The redesign primarily focused on changing the color palette and enhancing the security features of the affected denominations. The Central Bank of Nigeria cited several reasons for the currency redesign and the associated demonetization policy, noting that, by global best practice, currency should be redesigned every 5 to 8 years, and the Naira was long overdue.
The naira was scheduled for redenomination in August 2008, although this was cancelled by then-President Umaru Musa Yar'Adua, with 100 old naira to become 1 new naira.
Read also: Current USD/NGN Value
Explainer: How Naira’s redesign will affect Nigeria’s economy
Recent Exchange Rate Statistics
Here's an overview of the NGN to USD exchange rate statistics:
| Statistic | Last 7 Days | Last 30 Days | Last 90 Days |
|---|---|---|---|
| High | 0.00070158 | 0.00070158 | 0.00070158 |
| Low | 0.00068654 | 0.00067767 | 0.00064990 |
| Average | 0.00069275 | 0.00068488 | 0.00066866 |
| Volatility | 0.79% | 0.43% | 0.35% |
These currency charts use live mid-market rates, are easy to use, and are very reliable.
Challenges and Interventions
The 2023 Nigerian currency crisis was precipitated in January 2023 by a shortage of naira cash amid an attempt by the Nigerian government to force citizens to use newly-designed notes. The Central Bank of Nigeria claimed that they attempted to control the annual inflation rate below 10%. In 2011, the CBN increased key interest rate six times, rising from 6.25% to 12%.
The naira was introduced on 1 January 1973, replacing the Nigerian pound at a rate of £1 = ₦2.
The scarcity of both old and new notes led to a prolonged cash crunch across Nigeria, severely impacting the economy. Businesses, particularly those in the informal sector which relies heavily on cash, suffered significant losses.
Read also: Exchange Rate Analysis
Currency Scarcity in Nigeria
Current Exchange Rate Dynamics
As of August 27, 2025, the parallel market exchange rate for the dollar is around ₦1483 per 1 USD, significantly higher than the official Central Bank of Nigeria rate. Currently, the amount of foreign currency is regulated through weekly auctions, while the Central Bank sets the exchange rate.
Read also: Exchange Rate: 300 USD to NGN
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