What is the Currency in Nigeria?

What is the Currency of Nigeria?

If you're travelling to Nigeria for business, tourism, or to visit family, understanding the local currency is essential. This guide is designed for UK visitors and outlines the official currency of Nigeria, how it’s used, and the best ways to manage your money while in the country.

What currency does Nigeria use?

Nigeria uses the Nigerian Naira, abbreviated as NGN and symbolised by ₦. It is the only legal tender used across the country, including in Lagos, Abuja, Port Harcourt, and all other states.

All purchases, services, and official transactions in Nigeria must be made in naira.

How is the Nigerian naira structured?

The naira is a decimal currency, divided into 100 kobo. However, kobo coins are rarely used today due to inflation and limited practical value.

Common denominations include:

• Banknotes: ₦50, ₦100, ₦200, ₦500 and ₦1,000

• Coins (rare): ₦1, ₦2

As of the time of writing, £1 is worth approximately ₦1,500–₦1,600, although this can fluctuate significantly due to currency controls, inflation and parallel market rates. Always check the current official and black-market exchange rates before converting.

Can you use British pounds or foreign currencies in Nigeria?

No. The Nigerian Naira is the only legal currency in the country. While some high-end hotels or travel operators may quote prices in USD or GBP, all payments are ultimately required in naira.

Foreign currencies like pounds, euros or dollars must be exchanged upon arrival at authorised bureaux de change, banks, or through reputable digital forex platforms.

Should you bring cash or use a card in Nigeria?

Nigeria is increasingly card- and mobile-money-enabled in urban areas. POS machines, contactless payments, and mobile banking apps are common in major cities. Visa and Mastercard are widely accepted at large retailers and hotels.

However, due to occasional power outages, network instability, or card reader issues, it is advisable to carry cash in naira, particularly when shopping locally or travelling outside city centres.

UK travellers should bring pounds or dollars and exchange them in-country. It’s also wise to carry a backup payment method, such as a travel card with international ATM access.

Where to exchange money in Nigeria

You can exchange money at:

• Authorised bureau de change offices

• Some banks (although bureaucracy may cause delays)

• Hotels (rates are typically less favourable)

• Informal money changers (not recommended due to security risks)

The Nigerian Central Bank maintains an official rate, but many people use the parallel (black market) rate, which may differ significantly.

Note: ATMs may limit withdrawal amounts or be out of service—so do not rely solely on cash machines.

Tips for managing money in Nigeria

• Carry small denominations for taxis, markets and tips

• Use card payments in trusted, secure environments only

• Never exchange currency on the street or with unlicensed traders

• Keep emergency cash in a separate, safe location

• Be vigilant when using ATMs, particularly in public areas

Common mistakes to avoid

A frequent mistake is assuming card payments will work everywhere—many smaller shops, taxis and rural areas are cash-only. Another is exchanging money at the airport at unfavourable rates, or engaging with black-market traders who may provide counterfeit notes.

Also, avoid withdrawing large amounts of cash late at night or in poorly lit areas.

In summary

Nigeria uses the Nigerian Naira (₦, NGN) as its official currency. While cards are accepted in many urban settings, cash remains essential for everyday transactions. UK travellers should bring pounds or dollars to exchange locally and use fee-free international cards with caution. Always plan ahead for currency needs and remain security-conscious.