DECIMAL CURRENCY ACT

An Act establishes the decimal currency system with the naira and kobo as Nigeria's official currency, converting from the previous pounds, shillings, and pence. It targets all users of Nigerian currency, the Central Bank, and financial institutions to facilitate a smooth transition.

What Is This Policy?

An Act establishing the decimal currency system of the Nigerian naira and kobo, converting from the previous pounds, shillings, and pence system, and providing for the transition to the new currency.

Who Does It Target?

All persons using Nigerian currency The Central Bank of Nigeria Commercial banks and financial institutions Government agencies managing public finances

What Does It Aim to Achieve?

Formally establish the naira and kobo as Nigeria's official decimal currency and provide for the conversion of contracts and obligations denominated in old currency to new naira equivalents.

Key Features

Currency Establishment: Formally establishes the naira (N) subdivided into 100 kobo as the official legal tender of Nigeria. Conversion Rate: Sets the conversion rate between old pounds, shillings, and pence and the new naira. Contract Conversion: Provides for automatic conversion of pre-existing contracts from old to new currency. Legal Tender: Declares naira notes and coins issued by CBN as the only legal tender in Nigeria.

Current Status

Rollout Stage: Active — transition completed; Act remains in force as legal basis for naira Coverage: Nationwide currency system Beneficiaries: All Nigerians through stable currency system Funding: CBN currency management

How to Access

No public application required — automatic application to all transactions CBN manages currency in circulation Application method: Not applicable.

Important Terms

Only naira and kobo are legal tender in Nigeria All contracts must be denominated in naira within Nigeria CBN has exclusive authority to issue naira notes and coins

Official Resources

Website: https://www.cbn.gov.ng Contact: Central Bank of Nigeria (CBN)

Legal Framework

Enacted under the legislative powers of the National Assembly as the Decimal Currency Act (Cap D5 LFN 2004), formalising the naira decimal currency system. Operates alongside the Central Bank of Nigeria Act 2007, the Coins Act, the Currency (Offences) Act, and the Finance (Control and Management) Act. The CBN exercises exclusive monetary authority under its enabling Act as the sole issuer of legal tender.