NIGERIAN CURRENCY SYSTEM, 1914-2014: A CENTURY OF TRANSFORMATION

Abstract

In 1914, the Protectorate of Northern Nigeria and the Colony and Protectorate of southern Nigeria were merged by Sir Fredrick Lugard. The new territory became known as the Colony and Protectorate of Nigeria. Lugard became its first Governor General and ruled between 1914 and 1919. Before then, Southern Nigeria which was a British Protectorate in the coastal areas of modern-day Nigeria formed in 1900, was added to Lagos Colony in 1906, and the territory was officially renamed the Colony and Protectorate of Southern Nigeria. From that time till date, the country has been experiencing transformations in its currency system. This paper sets to offer a historical overview of the transformation of Nigeria’s currency system over a period of one hundred years, from 1914 to 2014. The paper demonstrates how the Nigerian currency system has evolved in the course of hundred years from a cash-based type to an increasingly cashless type. It was concluded that, although it is replete with challenges, the ongoing cashless policy in the country has come to stay. The paper is based on qualitative method of data collection and evaluation. Both primary and secondary sources of historical data have been consulted and utilised on the course of writing the paper.