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The second Nigerian Naira NGN was introduced following the adoption of a new constitution and the country's transition to civilian rule. The Nigerian Naira was introduced as the official currency of Nigeria, replacing the pound sterling with a decimal currency system. The Central Bank of Nigeria adopted a flexible exchange rate policy, allowing the Naira to float freely against other currencies based on market forces. The Nigerian government implemented the Structural Adjustment Program, leading to a significant devaluation of the Naira and the adoption of a floating exchange rate.
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