Understanding the Economy of Nigeria: Capital and Currency

Nigeria is a major economy in West Africa, known for its rich cultural heritage, vibrant markets, and vast natural resources. This article delves into the key economic aspects of the country, focusing on its capital and currency.

The Capital of Nigeria: Abuja

Abuja, the capital of Nigeria, is a planned city that was designated as the official capital of the country. It was officially declared the capital on December 12, 1991, replacing Lagos, which was Nigeria's former capital and the largest city in the country.

Nestled in the central part of the country, Abuja was established to serve as a political and administrative hub. Its selection as the capital was driven by several factors, including the need to establish a central command and control structure for the country and the desire to promote balanced regional development.

The Nigerian Currency: Naira (NGN)

The official currency of Nigeria is the Nigerian Naira (NGN). The naira is subdivided into 100 kobo, which is often denoted without the 'k' symbol. Introduced in 1973, the naira has undergone several major reforms to address inflation and to strengthen its purchasing power.

History and Reforms of the Naira

Since its introduction in 1973, the naira has seen several value adjustments and reformations:

1985: The naira was devalued, and the introduction of the "new naira" (1 new naira 100 old naira) aimed to stabilize the currency market. 1986: A second round of devaluation occurred, with the creation of the "second new naira" (1 second new naira 100 new naira). 2005: The naira was revalued, with the introduction of the "third naira" (1 third naira 1,000 second new naira). 2006: The currency was simplified to the current Nigerian Naira (NGN).

The naira is managed by the Central Bank of Nigeria (CBN), which also issues the currency and oversees its circulation.

Key Data on the Nigerian Naira

Here is a summary of key data on the Nigerian Naira:

Sign: # or ? Code: NGN Banks and ATMs: A wide network of banks and ATMs throughout the country makes currency exchange convenient. Major banks include Access Bank, Sterling Bank, FCMB, and Zenith Bank. External Exchange: The currency is generally accepted in many countries around the world, although at a different rate of exchange. Online Services: Online money transfer services like Western Union, MoneyGram, and Intertel operate in Nigeria, allowing for easy conversion of funds from various currencies to the naira.

Conclusion

The determination of Abuja as Nigeria's capital and the management of the Nigerian Naira (NGN) are crucial aspects of the country's political and economic landscape. Understanding these elements can provide valuable insights into the economic structure and governance of Nigeria, two key components of any comprehensive study of the country.