The Nigerian House of Representatives has requested that the Central Bank enforce the acceptance of coins such the N2, N1, and 50k.
The decision comes at a time when inflation has rendered higher-denomination currencies such as the N10 and N5 obsolete in the market, as most things now cost more than those currencies.
Following a motion by Muda Lawal, the resolution for the restoration of the lower denomination was passed.
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Former Central Bank Governor Sanusi Lamido reintroduced the N1 and 50k notes, as well as a new N2, however the legal tenders failed to gain widespread popularity due to a variety of circumstances.
Lawal stated in his motion that despite the large sums of money spent on the creation of those coins, they appear to have vanished from circulation.
“Despite the Federal Government’s massive budgetary investment in the creation of coins as legal currency, the abovementioned coins appear to be extinct at the time.”
He attributed the country’s recent inflation to the lack of use of lesser denominations.
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“A lack of coins and other lesser denominations has resulted in prices being summed up to the nearest Naira equivalent, a condition that can best be described in economic terms as inflation,” Lawal added.
Subsequently, the House asked the Committee on Banking and Currency to ensure compliance.
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