Banks to Start Paying Customers in Coins, as Lawmakers, tell CBN to Reinforce its use as legal tender

Banks to Start Paying Customers in Coins, as Lawmakers, tell CBN to Reinforce its use as legal tender

  • While Nigerians are still confused about what happened to the eNaira project, Lawmakers have instructed CBN to enforce the use of coins for transactions
  • Coins are part of the Nigerian currency, the structure comprises of three coin denominations (50k, ₦1, and ₦2)
  • The lawmakers have therefore instructed CBN to ensure Nigerian banks start issuing coins to Nigerians

In what can be seen as a curious move, on Tuesday, March 22, 2022, the House of Representatives requested the Central Bank of Nigeria to reinforce the use of coins as legal tender and guarantee that banks fully comply with the directive.

This is the sequel to the adoption of a motion moved by Muda Umar from Bauchi at plenary, BusinessDay reports.

According to him on February 28, 2007, Nigeria spent so much to introduce the use of coins under the economic reforms of the former Governor of the Central Bank of Nigeria, Sanusi Lamido Sanusi.

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CBN will reduce the volume of N500 and N1000 in circulation

Banks to Start Paying Customers in Coins, As Lawmakers, tell CBN to Reinforce its use as legal tender
Senate moves to reinforce the use of coins Credit: NASS
Source: UGC

He explained that N50, N20, N10 and N5 banknotes were reissued with new designs as well as the coining of N1 and 50 kobo, while a new N2 coin was introduced.

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Umar wonder while after the huge expenditure expeby the Federal Government in the production of coins as part of the legal tender, the said coins seem to be extinct at the moment, Dailytrust added.

What Umar is saying

His words:

“the day to day business transactions of ordinary Nigerians have been significantly affected as the lack of coins and other lower denominations have resulted in prices being summed up to the nearest Naira equivalent, a situation that can best be described as inflation in economic terms.
“Worried that while other countries make use of coins for their daily financial transactions, the Nigerian coins comprising 50kobo, N1 and N2 have not been fully utilized in that regard.

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“Believes that injecting low denominations and coins into the economy will go a long way in curbing price inflation and stabilizing the economy.”

The House, while adopting the motion, mandated the Committee on Banking and Currency to ensure compliance.

Ecobank leads as 10 commercial banks spend over N400bn on staff salaries

Meanwhile, had earlier reported that working in the banking industry is a dream for many Nigerian graduates because they believe there is a lot of money to be made

The report showed how ten commercial banks paid workers salaries and wages of over N400 billion in 2021.

The amount captured in the report only covers salaries and wages and does not include other staff costs, pension contribution that makes up personnel cost.


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