In 1991, ₦50 notes were issued, while the 50 kobo and ₦1 notes were replaced by coins in 1991. This was followed by ₦100 in 1999, ₦200 in 2000, ₦500 in 2001 and ₦1,000 on October 12, 2005. On 28 February 2007, new versions of the ₦5 to ₦50 banknotes were introduced.
In late October, the central bank redesigned the bank notes to curb crime, ransom payments to kidnappers, and counterfeiting and to regain control of the amount of money in circulation. Authorities say the measure has been successful.
Currency redesign is generally aimed at achieving specific objectives such as improving security of banknotes, mitigating counterfeiting, preserving the collective national heritage, controlling currency in circulation and reducing the overall cost of currency management.
The challenges of currency redesign in Nigeria
Other challenges are:
- Worsening shortage of clean and fit banknotes, with attendant negative perception of the CBN and increased risk to financial stability;
- Increasing ease and risk of counterfeiting, evidenced by several security reports.