Nigeria currency guide: The Nigerian naira (NGN)

When you think of Nigeria, you might think of bustling markets, friendly people, and joyous music. But there are so many more reasons to visit the African country. Many people trek to Nigeria to marvel at its abundant wildlife and countless natural wonders. Others come for the deeply flavored cuisine.

If Nigeria is part of your travel plans—or if you’re looking to send money to someone in Nigeria—it helps to know a little about the country’s local currency, the naira. Learn more about Nigeria’s currency, including the naira’s history and denomination breakdown, and tips for exchanging your US dollars (USD) for naira.

Note: Before making travel plans, check the US Department of State website for the latest travel advisory information.

What is the currency in Nigeria?

The naira, denoted by the code “NGN” and symbol “₦,” is Nigeria’s currency. One naira divides into 100 kobo. However, you won’t find many kobo in circulation today because of their low value.

• Abbreviation: NGN
• Symbol: ₦
• Banknote denominations: ₦5, ₦10, ₦20, ₦50, ₦100, ₦200, ₦500, ₦1,000
• Coin denominations: 50 kobo, ₦1, ₦2
• Exchange rate policy: Floating rate

Several security features on Nigerian banknotes make them less prone to counterfeiting. These include:

• Watermarks: Visible when exposed to light
• Security threads: Inscribed with “CBN” for Central Bank of Nigeria
• Holographic strips: Seen on higher denominations
• Raised print: For a distinct texture that’s difficult to duplicate
• Polymer material: Featured in some naira; makes them more durable and helps protect against counterfeiting

History of the Nigerian naira

The pound sterling was the major currency in Nigeria during the late 1800s when the British Empire ruled Nigeria and other West African territories.

The British West African Pound was introduced as a replacement in the early 1900s. This currency circulated in Nigeria and other West African countries colonized by the British, including the Gold Coast (now Ghana), Sierra Leone, and the Gambia.

The Central Bank of Nigeria Act 1958 established the country’s central bank, which began operating a year later. In 1959, Nigeria replaced the British West African pound with the Nigerian pound.

Finally, in 1973, Nigeria introduced the naira, which replaced the pound at a rate of 2 naira to 1 pound. Thanks to Nigeria’s vast oil reserves, the naira’s strength initially rivaled the US dollar.

In the following decades, inflation and declining oil prices caused the naira to depreciate. In 1986, Nigeria launched the Structural Adjustment Program (SAP), which introduced a market-determined rate currency and significantly devalued the naira. The goal was to promote export competitiveness, diversify the economy, and reduce the economy’s dependence on oil.

More recently, Nigeria has become one of the first countries to introduce its own digital currency—the eNaira. The central bank digital currency (CBDC) is used in digital wallets and backed by the government.

7 tips for exchanging US dollars to naira

There are several things you need to know when exchanging USD for NGN. These tips will help you get a more favorable exchange rate for Nigerian currency and avoid scams.

1. Research and compare exchange rates

Compare exchange rates for Nigerian currency before committing to an exchange service. Money exchangers like banks, licensed exchange bureaus, and online platforms will all have different exchange rates. Search around for the best rate to get more naira for your dollars.

Also, remember to factor in any fees you might pay on your exchange transaction (more about fees later).

2. Notify your bank ahead of traveling

Unfortunately, Nigeria does have its share of scammers. Therefore, it’s possible that your bank could flag transactions originating from Nigeria as fraudulent. And that could mean it freezes your account. Thus, it’s important to let your bank or credit card issuer know about your travel plans so that you can use money in Nigeria without issue.

Tell your bank not only where you’ll be traveling but also the dates of your trip, so it doesn’t view your transactions originating from Nigeria as suspicious. Some banks and credit card companies enable you to do this on their online platforms or apps. Otherwise, you may have to call the number on your bank or credit card.

3. Avoid exchanging money at airports, hotels, and tourist areas

It’s typically best to avoid exchanging money in tourist areas of Nigeria. Money exchangers in these areas often exploit tourists with less than stellar rates—and they may even try to defraud you.

Airports and hotels aren’t as much of a security risk when exchanging money in Nigeria, but they typically don’t provide a fair exchange rate. If you need naira immediately upon arrival, consider exchanging a small amount at your hotel or airport. Wait to convert more cash somewhere with a better exchange rate.

4. Consider commissions and fees

When exchanging for Nigeria’s currency, you might encounter various fees depending on your payment method. Typical fees include:

• Transaction fees: Flat fees per transaction
• Commissions: Fees money exchangers charge for their services
• Currency conversion fees: Fees for making payments in home currency instead of naira.
• ATM usage fees: Flat fees for using an ATM to convert currency
• International transaction fees: Often charged for credit card transactions

Before you agree on a currency conversion, make sure you understand all the fees you’ll be charged for your transaction. Reputable exchange providers like Western Union use transparent fee structures so you know upfront exactly how much your transaction will cost.

5. Opt to be charged in the Nigerian currency when withdrawing money from ATMs

Because ATMs are often available 24/7 and located throughout the country, they’re among the best ways to exchange currency in Nigeria. One tip for using an ATM to exchange currency in Nigeria is to pay fees and withdraw in naira instead of dollars. By choosing naira, your home bank will conduct the money exchange and save you on currency conversion fees.

6. Exchange money in Nigeria instead of the US

Nigeria has an array of banks and bureaus de change (foreign exchange bureaus) that offer money exchange for foreigners. Unlike attempting to exchange your dollars for Nigeria’s currency in the United States, you’ll have more options and likely get a better exchange rate if you wait to convert your dollars to naira in Nigeria.

7. Use reputable exchanges

Avoid disreputable exchange services at all costs. Unlicensed money exchange services will likely tempt you with good interest rates and friendly service but don’t be fooled. Stick to reputable money exchangers called bureaus de change, which are licensed by the Nigerian government.

You can reliably exchange Nigerian currency through reputable providers like Western Union. Western Union agents throughout Nigeria can help you quickly initiate your money transfer with transparent fees and a solid exchange rate. Security features like touch ID, transfer tracking, and cutting-edge encryption help protect your money.

Using money in Nigeria

Using money in Nigeria isn’t all that different than using it in the United States. But here are a few helpful things to know when paying for goods and services in Nigeria.

Can you use US dollars in Nigeria?

Some merchants in Nigerian cities like Lagos and Ibadan might accept US dollars. The same goes for certain high-end tourist destinations and hotels. But merchants aren’t required to accept dollars, so you could be left scrambling if you don’t have any Nigerian currency to make payments.

Carrying naira ensures you can transact anywhere. As Nigeria’s official currency, it will be accepted by every merchant and service provider in the country.

Tipping etiquette in Nigeria

You may see a service charge added to your bill at restaurants and cafes, especially upscale ones. But this charge likely won’t go to your server, so if you want to tip, consider adding 7% to 15% as a gratuity for high-quality service. The same goes for hotel staff and even taxi drivers.

Tipping at spas, hair salons, and other service-based businesses is always welcome. Make sure to carry money in Nigeria so you can tip in cash, which is convenient for locals.

Where to get Nigerian naira near me?

If you’re in a major city or tourist area, you’ll find plenty of places for currency exchange near you in Nigeria. Banks, ATMs, currency exchange services, airports, and hotels all offer currency conversion. Once you have naira, you can use it to pay any merchant or service you need while traveling.

Additionally, Western Union has agents throughout Nigeria to help you exchange your dollars for Nigerian currency. Stop by an agent location or use the Western Union^® mobile app to get naira today.