House Of Reps Urges CBN To Enforce The Use Of Coins
The Nigerian House of Representatives directed the Central Bank of Nigeria (CBN) on Tuesday to guarantee that Nigerians carry out transactions using coins in order to reduce inflation.
Following the consideration of a motion by Muda Umar of Bauchi state, who stated that the non-use of coins and other notes by Nigerians is having a detrimental effect on the economy, the legislators issued the decision.
The 50 kobo, N1 and N2 Nigerian coins have all been taken out of circulation owing to the lack of smaller value transactions.
The House of Representatives, on the other hand, believes the coinage should be reinstated and enforced in order to combat and moderate price inflation in the nation.
“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 proposal was approved when Deputy Speaker Idris Wase, who presided over Tuesday’s House plenary, put it to a voice vote.
The legislators then asked the CBN to guarantee banks comply and make full use of the coins, as well as its banking and currency committee to monitor and assure compliance.
After the House meeting, Umar told media that reintroducing coins into circulation will alleviate many of the residents’ financial concerns.
“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.