The House of Representatives has urged the Central Bank of Nigeria to reinforce the use of coins as a legal tender in the country.
In a resolution it passed during plenary on Tuesday, March 22, 2022, the House called on the apex bank to ensure that commercial banks complied with the use of coins to the fullest.
A member from Bauchi State, Rep. Muda Lawal Umar, moved the motion on the matter, which was unanimously passed by his colleagues.
Leading the debate, he argued that the lack of coins had significantly affected smooth financial transactions involving particularly ordinary Nigerians, who now bore the brunt of prices summed up to the nearest Naira equivalent.
His motion reads partly, “The House notes that on February 28, 2007, as part of the economic reforms under the former Governor of the Central Bank of Nigeria, Sanusi Lamido Sanusi, 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.
“Also 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 50 kobo, 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 stabilizing the economy.”
His key prayer was to “urge the Central Bank of Nigeria to reinforce the use of coins as a legal tender and ensure that Banks comply with the use of coins to the fullest.”
The motion succeeded by a unanimous voice vote.