Members of the Nigerian House of Representatives have requested that the Central Bank of Nigeria strengthen the usage of coinage in the country in order to combat inflation and stabilize the economy.
Following a motion presented by Umar Lawal, a member representing Toro Federal Constituency in Bauchi State, the call was made at plenary on Tuesday, March 22.
According to Umar, the absence of coins has had a significant influence on the country’s regular economic dealings.
“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.”
Idris Wase, the presiding officer, submitted the matter to a voice vote, and it was approved. Following that, the lawmakers asked the CBN to ensure that banks adhere to the “full usage of coinage” requirement.
The House also charged its banking and currency committee with ensuring compliance.
In Nigeria, the use of coinage has been phased out for decades.