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Hello, my brilliant Afrilearn superstar! I hope you are having a fantastic day. You are doing an amazing job learning about Nigeria’s history, and I am so proud of you! Today, we will talk about something we all use every day—money! Have you ever wondered why Nigeria uses Naira and Kobo instead of British Pounds? Well, let’s find out how and why Nigeria changed its currency in 1973.
Introduction of Kobo and Naira as Nigeria’s Legal Tender – January 1, 1973
Imagine you are playing a game where you have been using foreign coins to buy things, but one day, the game changes, and you are given brand-new Nigerian coins and notes that belong only to you. That’s exactly what happened in 1973, when Nigeria introduced the Naira (₦) and Kobo (K) as its official currency, replacing the British Pound Sterling (£).
Before this, Nigeria used the British currency because the country was once a colony of Britain. But after gaining independence in 1960, Nigeria wanted to have its own identity—including its own money. So, on January 1, 1973, the government introduced Naira and Kobo as the country’s official legal tender.
The Nigerian government, under General Yakubu Gowon, introduced the decimal currency system, replacing the old pounds, shillings, and pence (₤, s, d) system inherited from British rule. The new Nigerian currency was:
- The Naira (₦) – This became Nigeria’s main unit of money, replacing the British Pound. One Naira (₦1) was equal to 100 Kobo (K100).
- The Kobo (K) – This became the smaller unit of the Naira. Just like 100 kobo make ₦1, 100 cents make 1 dollar in the US.
At that time, the first banknotes introduced were ₦1, ₦5, and ₦10, while the first coins included ½ kobo, 1 kobo, 5 kobo, 10 kobo, and 25 kobo. This change was called currency decimalisation because it replaced the complicated British system of pounds and shillings with a simpler one, where everything was based on units of 10 and 100.
The introduction of Naira and Kobo was important because:
- It gave Nigeria its own national identity, separate from British influence.
- It made trade and transactions easier, as the decimal system was simpler to use than the British system.
- It showed that Nigeria was fully independent, managing its own economy and financial system.
Since then, Nigeria’s currency has changed over the years, with new notes and coins introduced. Today, the Central Bank of Nigeria (CBN) manages the printing and circulation of the Naira.
Imagine you are playing a game where you have been using someone else’s play money, but then the game master gives you your own special money with your name on it. That is exactly what happened when Nigeria introduced the Naira and Kobo—it became our own national currency, separate from British money.
Nigeria introduced the Naira (₦) and Kobo (K) on January 1, 1973, under the leadership of General Yakubu Gowon, replacing the British Pound Sterling (£). The Naira became the official currency, with 100 Kobo making 1 Naira. This change was important for Nigeria’s independence, economy, and national identity. Today, the Central Bank of Nigeria (CBN) continues to manage Nigeria’s currency.
Evaluation
- When was the Naira introduced as Nigeria’s official currency?
- Who was Nigeria’s leader when Naira and Kobo were introduced?
- What was Nigeria’s currency before the Naira?
- How many Kobo make 1 Naira?
- Why was it important for Nigeria to introduce its own currency?
Fantastic job, superstar! You have just learned about a very important moment in Nigeria’s history. Keep shining and never stop learning because knowledge is power! Remember, with Afrilearn, you are always ahead. See you in our next exciting lesson!
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