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How and Why Obafemi Awolowo Coined the Term Naira

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Chief Obafemi Awolowo coined the term Naira- Nigeria’s currency when he was the Federal Commissioner for Finance between 1967 and 1971, according to Tokunbo Awolowo, the daughter of the late age.

 

Tokunbo Awolowo said her father collapsed the name of the country and arrive at the term Naira.

 

”He just took the name of Nigeria and collapsed it to Naira. That’s what he told us and that was how he arrived at the name ‘Naira’ and that was when he was the Federal Commissioner for Finance” she said in an interview with the Punch

late Chief Obafemi Awolowo

Federal Government of Nigeria introduced the Naira as new money system on Monday, January 1, 1973.

 

Before then, the official currency was the Nigerian Pounds which was introduced in 1907 while the minor unit of the currency was Shillings.

 

According to the Central Bank of Nigeria, the decision to change to decimal currency followed the recommendations of the Decimal Currency Committee set up in 1962 which submitted its report in 1964.

 

Meanwhile, prior to the introduction of the new currency in 1973, Chief Obafemi Awolowo was the Federal Commissioner for Finance between 1967 and 1971.

Emefiele, CBN gov

And as the Finance Minister, Awolowo took it upon himself to come up with a new name for the new currency as the then Head of State, General Yakubu Gowon had reportedly announced in March 1971, that Nigeria would change to decimal currency on January 1, 1973.

 

The N100 denomination was introduced in December 1999 bearing the portrait of Chief of Obafemi Awolowo.

 

However, as of 1973, one Naira was the major currency unit in the country.

 

Four years after the introduction of Naira,  a new banknote denomination of the value of 20 Naira was issued on Friday, February 11, 1977, and as a result, N20 became the first Nigerian currency bearing the portrait of a Nigerian citizen, General Murtala Ramat Muhammad.

 

Interestingly, 26 years after Naira became the official currency of the Federal Republic of Nigeria, another denomination of the value of N100 was introduced with the portrait of Chief Obafemi Awolowo precisely in December 1999.

 

And in a bid to facilitate an efficient payment system, the Central Bank of Nigeria introduced N200, N500 and N1000 notes in November 2000, April 2001 and October 2005 respectively.


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E-Financial

Lagos State Appoints MoneyMaster as Payment Partner for “Ounje Eko” Programme

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“Ounje Eko”, the food price discount initiative of the Lagos State Government, has appointed leading payment service bank, MoneyMaster Payment Service Bank Limited (MMPSB), as its collaborator in the bid to ensure ease of payments at the market.

MoneyMaster is one of the Central Bank of Nigeria-licensed Payment Service Banks (PSBs) to promote financial inclusion across Nigeria.

Under the partnership, MMPSB will apply its cutting-edge payment solution to engender easy payment and reconciliation in order to make   the experiences of Lagosians who will be getting their food supplies from the markets pleasurable. Its payment solution is also all-encompassing and ensures real time value to payment destinations.

The mobile bank was appointed as the collection and payment partner for “Ounje Eko” Food Markets programme which is a government initiative serving the five divisions of Lagos State. Consequent on this, MoneyMaster Payment Service Bank will collect payments in 57 LCDAs in the state.

The partnership gives credence to the quality of payment solutions that MoneyMaster is reputed for in its services to its growing business clientele in private and public sectors.

 


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E-Financial

CBN, EFCC Probe Banks, Firms over Alleged Forex Racketeering

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Central Bank of Nigeria (CBN), is investigating irregular foreign exchange transactions and forward contracts valued at approximately $2.4 billion.

CBN, EFCC Probe Banks, Firms over Alleged Forex Racketeering

The  inquiry follows an extensive audit by Deloitte, which scrutinized $7 billion in dollar debts accumulated under the bank’s previous leadership.

In the aftermath of the 294th Monetary Policy Committee meeting in Abuja, Yemi Cardoso, governor of CBN,  disclosed to journalists that the investigation, supported by the Economic and Financial Crimes Commission, among other security bodies, aims to clarify the legitimacy of these FX allocations identified as problematic by the audit.

“It was determined that a number of these transactions did not qualify…they were outright illegal. The law enforcement agencies are now looking into those transactions that as far as we are concerned, are not valid to be paid,” Cardoso detailed, emphasizing the unlawful nature of these forex deals.

The crux of the investigation lies in the audit findings that a significant portion of the scrutinized transactions lacked proper documentation and, in many instances, were deemed outright illegal.

However, the unfolding investigation has raised concerns within the organized private sector, with some entities contemplating legal action against commercial banks for unresolved forex bids.

Despite these tensions, Governor Cardoso reassures that the foreign exchange market remains open and transparent, inviting stakeholders to address their forex needs through the official channels.

Furthermore, Cardoso clarified the distribution of fertilizers to farmers as a one-off measure and not indicative of a shift back to direct interventions by the CBN, underscoring a commitment to strategic, regulatory governance rather than direct market involvement.

 

 

 

 

 

 

 

 


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CBN Urges Banks to Expedite Action on Recapitalisation

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Central Bank of Nigeria (CBN) has directed deposit money banks in the country to expedite action to increase their capital base from the current ₦25bn.

CBN Urges Banks to Expedite Action on Recapitalisation

Olayemi Cardoso, governor of CBN

Olayemi Cardoso, governor of CBN, stated this during the apex bank’s 294th meeting of the Monetary Policy Committee (MPC) on Tuesday in Abuja, when the MPC hiked the interest rate by 22.75% to 24.75%.

The apex bank chief said the MPC examined developments in the banking sector and expressed satisfaction that the industry remained stable. The committee, however, said to guard against risk, commercial banks in the country should accelerate their recapitalisation efforts.

Cardoso said, “The MPC also reviewed developments in the banking system and noted that the industry remains safe, sound, and stable. The committee thus called on the bank to sustain its surveillance and ensure compliance of banks with existing regulatory and macro-potential guidelines.

“The MPC also enjoined the banks to expedite actions on the recapitalisation of banks to strengthen the system against potential risks in an increasingly globalised world.”

 

 

 

 


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