Nigeria: New Coins Coming Soon

Started by Bimat, February 15, 2012, 02:05:09 PM

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Figleaf

Just a comment on the "wobbling economy" quote. According to a recent UNESCO report, there are 57 million children on earth who do not get any schooling. Of those, 20% live in Nigeria. With all its oil, Nigeria is a grotesquely failed state, without any cause for optimism. The title of this thread is pretty misplaced.

Peter
An unidentified coin is a piece of metal. An identified coin is a piece of history.

Harry

Quote from: Figleaf on June 25, 2013, 02:14:08 AM
Just a comment on the "wobbling economy" quote. According to a recent UNESCO report, there are 57 million children on earth who do not get any schooling. Of those, 20% live in Nigeria. With all its oil, Nigeria is a grotesquely failed state, without any cause for optimism. The title of this thread is pretty misplaced.

I agree, its very sad. I use to live in Nigeria when I was a kid and have fond memories of Lagos, Kano and Jos.  Nigeria has so much potential but its been mismanaged for decades. 
Collector of British India, Straits Settlements, Malaya, East Africa coins and papermoney

eurocoin

#17
No replies to this topic for 3 years and no mention by the Central Bank of Nigeria about the plans to convert the notes into coins for almost 4 years. In the meantime the value of the Nigerian naira has decreased by almost 50%. The Central Bank of Nigeria is however still printing the N5, N10, N20 and N50 notes, even although according to a Nigerian economist, the costs to print these banknotes is almost getting higher than their face value. This can be explained by the fact that Nigeria uses polymer notes which are twice as expensive as cotton notes. Replacing these with coins would decrease the production costs.

With the N50 note now being worth 15 euro cents (in 2012 25 euro cents), I think it is strange that they have not yet made the reform. There is inflation but the coins would still have values similar to coins that are being issued by other countries. At this moment the new coins would have values that are equal to 0.02, 0.03, 0.06 and 0.15 euro.

I mean they still produce currency with these small denominations anyway, so why choose for expensive polymer notes if new coins can be produced at a much lower cost. Furthermore a Nigerian economist recently complained in a local newspaper about the limited purchasing power the new coins would have, but that purchasing power will be similar to that of these expensive notes and even back in 2012 when the plans for these new coins were unveiled the purchasing power of these coins was already very low.

The currency manager at the Central Bank Nigeria today informed me that the plans are put on hold for the time being.

<k>

Looks like big inflation is coming. Maybe they should just mint wheelbarrows to carry all the banknotes in. But what happens when it takes 20 wheelbarrows full of banknotes, just to buy another wheelbarrow?  :-\
Visit the website of The Royal Mint Museum.

See: The Royal Mint Museum.

eurocoin

Already had this document for quite some time but forgot to post it here. At the end of May, the Nigerian senate urged the Central Bank of Nigeria to: intensify its sensitization campaign and other efforts to bring back coins in circulation, to redesign the coins for the highly repetitive transactions of their economy, to convert the low denomination banknotes into coins which will circulate alongside the notes and to sanction any commercial bank that refuses to collect coins from customers as deposit (see pages 7 and 8 ): http://www.nassnig.org/document/download/8572

eurocoin

Almost 1 year later again and no updates. The senator who was working on this and who in May of last year wrote the motion referred to in my message above, in which he urged the national bank to get new coins into circulation, passed away in April. It remains to be seen if and when Nigeria will at long last issue its new coins..

Pabitra

No more coins as Nigeria is now a member of ECOWAS which plans to have single currency by 2020.

See

https://theeagleonline.com.ng/ecowas-single-currency-presidential-task-force-to-meet/

chrisild

Well, we have 2021, and Nigeria's currency is still the naira. But they do have something new – the eNaira. No coins, no notes, but a digital wallet. That eNaira was launched earlier this week, see here.

Christian

Figleaf

This is a good example of a Central Bank Digital Currency (CBDC) as I discussed in my presentation on reserve currencies. Once it is widely used, it will in principle be a boon to the Nigerian economy: less and less coins to strike and banknotes to print abroad, even in times of high inflation, no more need for traditional vending machines that need to be adjusted every time the coins or banknotes change. When used correctly, the eNaira can be a powerful weapon against crime and fraud and a way to increase trust in the government and the law.

However, since this is Nigeria, one of the most corrupt countries on earth, beating their class of inept criminals and fraudsters depends on whether the system can be kept secure. Technically, that is quite possible.

Peter
An unidentified coin is a piece of metal. An identified coin is a piece of history.