This was as a result of a motion by Mustapha Bukar, the All Progressives Congress Senator representing Katsina South senatorial district.
Bukar in his motion, said according to the CBN, there are eight naira notes and three coins, which are all legal tender in Nigeria, highlighting that the coins were being rejected by traders and banks.
“In Nigeria, there are two types of retail payments; the highly repetitive small value transactions, such as urban transportation, sweets, cigarettes, kola nuts, sachet water, popularly known as pure water, vegetable etc., as well as, less frequent but high value transactions like clothing, footwear, raw foodstuff, electronics etc,” he said.
“Coin currencies are designed globally to cater for highly repetitive transactions because of the nature and conditions under which they happen, such as crowded market place, bus stations, congested traffic, and varying weather conditions, including rainy, sunny and humid conditions in which notes are ill-suited for them.
“Countries regularly upgrade their coinage to keep pace with the price of this category of retail items. Aware that an overwhelming majority of Nigerians engage in these transactions due to their income.”
He said coins are used being used in the US, UK, Europe, United Arab Emirates, and should be prevented from going into extinction in Nigeria.
“Worried that although the country’s currencies are in note and coin, indications are that coins are fast going out of fashion and into extinction.
“Research recently conducted by experts shows that in the early 90s 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 total absence of coin in the total economy.
“The local retailers keep rejecting the coins because commercial banks won’t accept them as deposit, even when they are reflected on paper, and the CBN still recognizes them as legal tender,” he added.
He suggested that “since the three coin denominations of 50 kobo, one kobo and 10 kobo have lost their values due to inflation, the conversion of lower currency notes to coins will facilitate retail transactions in the economy, like we have in developed countries”.
“Despite the huge budget by the CBN on sensitising Nigerians on the need to accept coins, the transaction chains were broken and banks and customers reject the currency, thus, promoting corruption and escalating inflation to the extent of diminishing the value of the coins.”
Ike Ekweremadu, the deputy senate president, who led the house senate urged the CBN to sanction deposit money banks that have made an habit of rejecting coins, and urged the bank to bring back coin usage.
The Cable
Coins kor. Coins ni
ReplyDelete@Galore
They should remove some zeros from the naira so we can actually know how many millionaires we've got in this country. Ndi ara!
ReplyDeleteKrix signing out via iPhone 7+
This our Senate are Jokers I swear..Which coins?? Coins wey beggars dey reject..Instead of looking at how we can strength online banking portals and stop thievery by banks, na coins be their problems..How many commodities sell at N1 or 50k..Mtsheeeww
ReplyDeleteSee it's Cos of this point you made that they suggested this thing. They mean that since N1 and 50k can no longer be used for much Cos of inflation, why don't we turn 100, 50, 20, 10 and 5 naira into coins. The notes will be 200, 500 and 1000. This makes sense since the denominations being turned to coins are more prone to destruction with this useless polymer rubbish. Coins are durable and can be easily adapted for things like parking meters, vending machines etc and will save a lot on recycling as they can be cleaned easily and melted. Seigniorage gains abound here even though that judgement cannot be made on the pages of newspaper, blogs or even on the floor of the house. Only indepth research into a problem can be the source of such judgements. My 1kobo
DeleteThey shouldn't try that at all,where we not using coin before changing to naria,how come they re thinking backward again
ReplyDeleteI no understand. Please rephrase.
DeleteSo that only them will be using note abi..
ReplyDeleteSee talk
ReplyDeleteCoins will actually reduce the ni change problem
ReplyDeleteCoins has no more value in Nigeria
ReplyDeleteAre this people okay atall
ReplyDeleteI agree with that anyway bit on one condition that tht will remove one zero from each naira note we have. This will help this country a lot.
ReplyDeleteMc pinky
Rubbish talk....olodos in power
DeleteThat's a very good suggestion, stella why Isit an endtime suggestions In Germany where you live don't they use coins , since 10kobo, 50kobo, 1 kobo That is in coin is on extinction the can Make the 5,10,20,50,100 Naira to coins this will save cost recycling of Naira Notes cos coins last longer, & can be melt & remold cos these currencies are mostly used by average Nigerians everyday, so they need to be made in a more lasting & durable form
ReplyDeleteAbeg o... that's how they will change it to coin too and 100 will no longer buy ordinary tomtom
ReplyDelete