The term "Nigerian pound" refers to a historical currency that was used in Nigeria before the country adopted the Nigerian naira in 1973. The Nigerian pound was subdivided into shillings and pence, similar to the British pound, reflecting Nigeria's colonial ties to Britain. The Nigerian pound was replaced by the naira at a rate of 2 naira for every 1 pound. The naira has since become the official currency of Nigeria, and it is used for all transactions within the country, playing a crucial role in its economy.