Enforce use of coins to tackle price inflation, reps tell CBN

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The house of representatives has asked the Central Bank of Nigeria (CBN) to enforce the use of coins as a legal tender.

The legislators said the use of coins will tackle price inflation and stabilise the economy.

The resolution was passed during plenary session on Tuesday following the adoption of a motion sponsored by Muda Umar from Bauchi state.

Umar said the non-usage of coins has had a negative impact on daily business transactions in the country.

“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 said.

“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.”