The History of Money
In order to understand how money works, it’s important to start by studying how it has worked in the past. This knowledge in your background will help you in your financial education (journey). Money has progressed over the centuries from something pretty simple, like bartering, to something pretty complicated, like derivatives. It’s gone from being an object to an idea. It’s important to study money to grow rich. That’s why we’re starting with a little history about money.
Some important dates:
Prior to 1912 – Nigeria used various forms of money including cowries and manilas.
1912 to 1959 – West African Currency Board was responsible for issuing currency notes in Nigeria.
1959 (1st July) – Central Bank of Nigeria issued the Nigerian currency notes and coins and the West African Currency Board notes and coins were withdrawn.
1962 (1st July) – Decimal Currency Committee (DCC) was set up. in 1962 which submitted its report in.
1964 – DCC submitted a report recommending that the major currency unit be called Naira which would be equivalent to ten shillings and the minor unit be called kobo; 100 of which would make one Naira.
1971 – The then Head of State announced that Nigeria would change to decimal currency as from 1st January, 1973.
1973 – The major unit of currency which used to be £1 ceased to exist and the one Naira (₦1) which was equivalent to 10/- become the major unit.
1977 – (11th February) – A new banknote denomination of the value 20 Naira (₦1) was issued. This was the highest denomination to be introduced then and bears the Portrait of a Nigerian citizen, in this case, the late Head of State, General Murtala Ramat Muhammed (1938-1976) who was the torch bearer of the Nigerian Revolution July, 1975.
Whichever country you are living, it’ll be to your advantage if you learn, however little, the history of their money.
Finance 101: The Financial Education You Need will be in 10 to 15 parts. Watch out for my subsequent posts.
To your success!