ABUJA, Aug 14 (Reuters) - The Nigerian central bank will eliminate all restrictions on capital account transfers and make its naira <NGN=> fully convertible by Jan. 1 2009, Goveror Chukwuma Soludo said on Tuesday.

The bank will gradually phase out its foreign exchange auctions in favour of interbank dealing and distribute fiscal revenues to states in dollars to deepen its foreign exchange market, Soludo told a gathering of press, government officials and diplomats.

Africa's top oil exporter will also re-denominate the naira from August 1 next year, removing two zeros, so that 100 old naira will become 1 new naira, he said.