The Senate has mandated the Central Bank of Nigeria (CBN) to sanction any commercial bank that refuses to collect coins from customers as deposits.
It also charged the regulatory 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 at yesterday’s 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 disappeared 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.
“Observe 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,” Bukar said.
