Members of the House of Representatives have asked the Central Bank of Nigeria to reinforce the use of coins in the country, to tackle inflation and also stabilise the economy.
The lawmakers want the “use of coins as a legal tender and ensure that Banks comply with the use of coins to the fullest.”
The call was made during plenary on Tuesday March 22, following a motion moved by a lawmaker, representing Toro Federal Constituency in Bauchi State, Umar Lawal.
Umar said the non-usage of coins has had a negative impact on daily business transactions in the country.
He expressed;
Despite the huge budgetary sum that was expended by the federal government in the production of coins as part of the legal tender, the said coins seem to be extinct at the moment. The day to day business transactions of ordinary Nigerians have been significantly affected as the lack of coins and other lower denominations have resulted in prices being summed up to the nearest naira equivalent, a situation that can best be described as inflation in economic terms.
Umar stated;
While other countries make use of coins for their daily financial transactions, the Nigerian coins comprising 50 kobo, N1 and N2 have not been fully utilised in that regard. Injecting low denominations and coins into the economy will go a long way in curbing price inflation and stabilising the economy.”
The motion was adopted after it was put to a voice vote by Idris Wase, the presiding officer. Subsequently, the lawmakers asked the CBN to ensure that banks comply with the “use of coins to the fullest”.
The house also mandated its committee on banking and currency to ensure compliance.
While other countries make use of coins for their daily financial transactions, the Nigerian coins comprising 50 kobo, N1 and N2 have not been fully utilised in that regard.
The reps say; “Injecting low denominations and coins into the economy will go a long way in curbing price inflation and stabilising the economy.”
Naira coins have not been in circulation in Nigeria for over a decade.
CBN last issued new coins in 2007 with N2 being the highest naira denomination in coin. That year, ₦1 and 50 kobo, which were coined in 1991, were reissued in new designs.
₦1, 50 kobo, 25 kobo, 10 kobo and 1 kobo coins were introduced in 1991 while 1/2 kobo and 5 kobo coins were phased out in that year.
1 kobo, 10, kobo and 25 kobo coins were discontinued in 2007.
