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Reps ask CBN to enforce coins, despite most commodities being above N10

 


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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