How use of coins, lower denominations will curb inflation -House of Reps

By allcitynews.ng

Concerned by the inflation rate now at 17.33 per cent, the highest in four years, members of House of Representatives have called for use of coins as legal tender.

This fresh attempt would give room to purposeful governance and checkmate rising inflation, members of House of Representatives have instructed Central Bank of Nigeria (CBN) to enforce use of coins of N1, N2, 50 kobo as legal tender.

Just as the lower chamber chsrged commercial banks to comply with the use of coins.

This reintroduction of lower denominations
became imperative to prune prices of goods and services and stabilise the economy.

This resolution was based on a motion moved by Muda Lawal (APC, Bauchi) on Tuesday during plenary.

Mr Lawal had, in his motion, questioned the non-acceptance of these denominations since their reintroduction by CBN under the leadership of Sanusi Lamido.

He argued that the recent persistent hike in prices of goods and services could be linked to the non-acceptance of the lower denominations.

Currently, Nigeria’s inflation rate is at 17.33 per cent, the highest in four years.

However, the runaway inflation has been blamed on the ongoing Russia-Ukraine war and its effects on energy and food supply.

But Mr Lawal said: “Injecting low denominations and coins into the economy will go a long way in curbing price inflation and stabilizing the economy.”

He stated that “lack of coins and other lower denominations have resulted in prices being summed up to the nearest Naira equivalent.”

The lawmaker added that “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 motion was taken without debate while the House Committee on Banking and Currency was mandated to ensure compliance