“Enforce Use Of N2, N1, 50k Coins To Tackle Price Inflation” – House Of Reps Tells CBN

The House of Representatives has asked the Central Bank of Nigeria (CBN) to enforce the use of coins, such as N2, N1 and 50k, as a legal tender to tackle price inflation and stabilise the economy.

House of Reps Suggest Us Of Coins

The resolution was passed during plenary session on Tuesday following the adoption of a motion sponsored by Muda Umar from Bauchi state.

Umar said despite the huge amount of money spent on the production of those coins, they appear to have gone out of circulation.

He questioned the non-acceptance of those denominations since their reintroduction, noting that the non-usage of coins has had a negative impact on daily business transactions in the country.

The lawmaker said, “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.

“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 the committee on banking and currency to ensure compliance.

Speaking with journalists after plenary, Umar said the masses are being shortchanged during daily transactions due to the absence of coins.

“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.

KanyiDaily recalls that Chairman of United Bank for Africa Plc, Tony Elumelu had recently launched a vocal attack against Nigerian leaders over the numerous challenges confronting the nation.