The House of Representatives has asked the Central Bank of
Nigeria to enforce the acceptance of coins, such as N2, N1 and 50k.
The directive is coming at a time when inflation has forced
other higher denominations like N10 and N5 to become irrelevant in the market,
as most items cost above those currencies.
The resolution for the reintroduction of the lower
denomination followed a motion moved by Muda Lawal.
It would be recalled that the former Central Bank Governor,
Sanusi Lamido had re-introduced N1 and 50k, while a new N2 was introduced,
however, due to several factors, the legal tenders did not achieve wide
acceptance.
In his motion, Lawal said despite the huge amount of money
spent on the production of those monies, they appear to have gone out of
circulation.
“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”.
He blamed the recent inflation rocking the country on the
lack of use of those lower denominations.
“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,” Lawal said.
Subsequently, the House asked the Committee on Banking and
Currency to ensure compliance.
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