Nigeria Long Overdue For Naira Redenomination, Says Economist Alao

“I have spent coins in London, Cyprus, Switzerland, France, Germany - Where are the Nigerian coins?”

COMBO: Photo combination of Olajide Alao on Channels Television’s Business Morning, Wednesday, September, 13,2023, and array of Nigeria naira notes.


A lecturer at the Economics Department, University of Abuja, Rasheed Olajide Alao, believes Nigeria’s currency, the Naira, is overdue for redenomination.

Speaking on Channels Television’s Business Morning, Alao argued that the redenominated will benefit Nigerians.

“The redenomination of the Nigeria currency is long overdue since 2007 when the former CBN governor made the move but it was abortive,” he said Wednesday.

The economist claimed that removing those zeros from the currency is necessary, adding that N1,000 would become N10, N500 would become N5, N200 would become N2, and N100 would become N1. In that case, he said N50 and N20 would become coins.

READ ALSO: Sanwo-Olu Swears In 37 New Commissioners, Special Advisers


“We have to redenominate our currency so that the coins will come back into circulation. After the redenomination, CBN needs to introduce N20 to take the value of N2,000, N50 to take place of N5,000, and N100 to take place of N1,0000 naira, so N1, 000 will be the highest currency,” Alao said.

Amidst inflation in the country, he argued that the naira redenomination would not only help coin holders but also aid in effective pricing.

Premium Motor Spirit (PMS) popularly known as petrol suffered a surge in price following President Bola Tinubu’s May 29 pronouncement that “fuel subsidy is gone“.

Petrol prices rose amid the continued decline of the naira and growing inflation in the country.

But the economist says with the naira redenomination, Nigerians would get a better bargain for the product.

“For example, in Abuja, petrol is sold for N617. After the redenomination, the petrol price will go back to N6, 16 kobo. It will also aid payment at ATMs, even our mothers, and Nigerian market women will have a revalued currency.

“I have spent coins in London, Cyprus, Switzerland, France, Germany. Where are the Nigerian coins?” he asked, reaffirming that Nigeria needs coins to boost the naira value.

“Many developed countries have experienced the redenomination, so the current 100 naira will be the highest currency in Nigeria,” he said.