OrderPaperToday- The House of Representatives on Tuesday urged the Central Bank of Nigeria (CBN) to reinforce the use of coins as a legal tender and ensure that banks comply with the use of coins to the fullest.
It also mandated the Committee on Banking and Currency to ensure compliance.
The above resolution was sequel to a motion titled ‘Call on the Central Bank of Nigeria to Reinforce the Use of Coins as a Legal Tender in Nigeria,’ sponsored by Muda Lawal Umar (APC, Bauchi).
House notes that on February 28 2007, as part of the economic reforms under the former Governor of the Central Bank of Nigeria (CBN), Sanusi Lamido Sanusi the following denominations such as N50, N20, N10 and N5 banknotes were reissued with new designs as well as the coining of N1 and 50 kobo, while a new N2 coin was introduced.
The lawmaker further notes that 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.
“Observes that 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.
Worried that while other countries make use of coins for their daily financial transactions, the Nigerian coins comprising 50kobo, N1, and N2 have not been fully utilised in that regard.
Believes that injecting low denominations and coins into the economy will go a long way in curbing price inflation and stabilising the economy.”
The motion was unanimously adopted when the presiding officer, Deputy Speaker Idris Ahmed Wase put the question.