Enforce The Use Of Coins By Nigerians – House Of Reps Tell CBN

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The House of Representatives on Tuesday, instructed the Central Bank of Nigeria (CBN) to ensure Nigerians carry out transactions using coins as a way to curb inflation in the country.

The lawmakers gave the directive following the consideration of a motion by Muda Umar from Bauchi state who argued that the non-usage of coins like other notes by Nigerians is having a negative impact on the economy.

Ezenwoko’s Blog reports Nigerian coins comprise 50 kobo, N1 and N2 but have all been phased out of usage due to the non-availability of lower denomination transactions.

But the House of Reps said the coins should be brought back and enforced to tackle and stabilize price inflation in the country.

“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,” Umar argued.

“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.

“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 utilized in that regard. Injecting low denominations and coins into the economy will go a long way in curbing price inflation and stabilizing the economy.”

The motion was adopted after it was put to a voice vote by the Deputy Speaker, Idris Wase, who presided over Tuesday’s House plenary.

The lawmakers thereafter directed the CBN to ensure banks comply and use the coins to the fullest while it also directed its committee on banking and currency to monitor and ensure compliance.

Addressing journalists after the House sitting, Umar stated further that bringing back coins into circulation would ease a lot of economic burdens on the citizens.

“The coin should be brought back into circulation to be a legal tender like bank notes that we have in circulation. That will ease a lot of hardship and will improve the economy,” he said.