Nigeria First (Abuja)
15 August 2007
Abuja — Central Bank of Nigeria (CBN) Governor, Prof. Chukwuma Soludo on August 14, in a landmark policy briefing, unveiled plans for a comprehensive and revolutionary reworking of the Nigerian economy, which will return the Naira to its pre-1986 value.
According to Professor Soludo, implementing the impending re-denomination of the Naira would involve dropping two zeroes or moving two decimal points to the left from the prevailing currency, and issuing more coin denominations.
By implication, the move would in nominal terms shrink all naira denominated assets, prices, transactions and contracts, while in real terms their value would rise 100-fold.
Under the plan, the current N1, 000; N 500; N 200 and N 100 notes will revert to N 10, N 5, N 2 and N 1, while fresh N 20 notes will be introduced. The proposed currency shall comprise mostly coins - one kobo, two kobo, five kobo, ten kobo and 20 kobo, and 50 kobo notes.
The new policy, which aims at making the Naira the reference benchmark currency when the common currency in Africa materializes, takes effect from August 1, 2008.
For the full text of the new policy click http://www.cenbank.org/out/speeches/2007/govadd14-8-07.pdf
Nigeria has been granted the right to host the African Central Bank.
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