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The Senate has urged the Central Bank of Nigeria (CBN) to sanction any commercial bank that refuses to collect coins from customers as deposit.
It also charged the apex bank to convert lower currency notes into coins to be used side-by-side with notes in order to facilitate retail transactions in the country.
This followed a motion by Mustapha Bukar (APC, Katsina State) at Tuesday plenary.
Adopting a motion titled: “Non-usage of coins currencies in Nigeria and its negative effects on the economy,” it called on the CBN to redesign the nation’s coins to cater for highly repetitive transactions in the economy as well as intensify its sensitisation campaign at bringing back coins into circulation.
Bukar expressed worry that despite the huge budget by the apex bank on sensitising Nigerians on the need to accept coins, banks and customers reject the currency, thus promoting corruption and escalating inflation.
The lawmaker said coins disappear in Nigeria because the face value of the metal used in producing it is lower than its intrinsic value.
Citing what obtains in developed countries, he argued that since the three coin denominations of 50kobo, N1 and N2 have lost value due to inflation, conversion of lower currency notes into coins will facilitate retail transactions in the country.
Experts believe that coin denomination are important to the economy as it controls the devaluation of a nation’s currency.
The lawmaker submitted that coins are more durable than notes, adding that the Central Bank stands to save a lot from the minting of notes that easily get mutilated.
“The Senate further observes that countries regularly upgrade their coinage to keep pace with the prices of this category of retaila items.
“Aware that the overwhelming majority of Nigerians engage in the highly repetitive small value transactions due to their income and locations.
“Observes that even in developed countries like the United Kingdom, the United States of America (USA), Japan, China, the European Union (EU) and the entire United Arab Emirate (UAE), coins are used as means of exchange through cash transactions.
“Worried that although the country’s currencies are in notes and coins, indications are that coins are fast going out of fashion and into extinction in Nigeria.
“Further worried that a survey recently conducted by experts reveals that in the early 90’s, coins were in use and considered good money in Nigeria, and now it is the only country in the entire West African sub-region where there is a total absence of coins in the economy,” he stated.
OWEDE AGBAJILEKE, Abuja
