₦airaland Forum

londonrivals:
The Central Bank of Nigeria should convert the country’s lower currency notes into coins to facilitate “highly repetitive” retail transactions, the Senate said Tuesday.

The advice came after a Senator spoke on the implications of rejection of the existing coin denominations for the 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,” said Mustapha Bukar, the APC Senator representing Katsina South.

Given the rejection, plus the loss of value of the coins due to inflation, Mr. Bukar, therefore, suggested conversion of the the lower notes into coins to “cater for highly repetitive transactions” which “overwhelming majority” of Nigerians are engaged in due to “location and income”.

“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,” the senator said.

“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.”

Quoting unnamed “experts”, he said coin denominations were important in helping control devaluation of country’s currency. Taking an instance from the U.S.A, he said a reason why one cent had not phased out “is due to inflationary ramifications of such a move”.

He observed that coins were still being used in advanced countries, including the United Kingdom, Japan, the European Union and the United Arab Emirates, but lamented Nigeria has now become the only country in West Africa “where there is a total absence of the coins in the economy.”

“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, vegetable etc., as well as, less frequent but high value transactions like clothing, footwear, raw foodstuff, electronics etc.

“Coin currencies are designed globally to cater for highly repetitive transactions because of the nature and conditions under which they happen, such as crowded markets, 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 prices of this category of retail items,” Mr. Bukar explained.

Following the motion, the Senate, led by Ike Ekweremadu, resolved to urge the CBN to intensify efforts to bring coins back to the economy; and convert lower currency notes into coins to be used “side-by-side with the notes” to facilitate highly repetitive retail transactions in the country.

The Senate also urged the CBN to impose sanction on any commercial bank that rejects coins as deposit.

Nigeria’s current currency notes are: N5, N10, N20, N50, N100, N200, N500 and N1000.

Mr. Bukar did not mention exactly which ones he defined as “lower notes”.

http://www.metronaija.com/2017/05/senate-wants-cbn-to-convert-lower-naira.html

londonrivals:
The Central Bank of Nigeria should convert the country’s lower currency notes into coins to facilitate “highly repetitive” retail transactions, the Senate said Tuesday.

The advice came after a Senator spoke on the implications of rejection of the existing coin denominations for the 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,” said Mustapha Bukar, the APC Senator representing Katsina South.

Given the rejection, plus the loss of value of the coins due to inflation, Mr. Bukar, therefore, suggested conversion of the the lower notes into coins to “cater for highly repetitive transactions” which “overwhelming majority” of Nigerians are engaged in due to “location and income”.

“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,” the senator said.

“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.”

Quoting unnamed “experts”, he said coin denominations were important in helping control devaluation of country’s currency. Taking an instance from the U.S.A, he said a reason why one cent had not phased out “is due to inflationary ramifications of such a move”.

He observed that coins were still being used in advanced countries, including the United Kingdom, Japan, the European Union and the United Arab Emirates, but lamented Nigeria has now become the only country in West Africa “where there is a total absence of the coins in the economy.”

“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, vegetable etc., as well as, less frequent but high value transactions like clothing, footwear, raw foodstuff, electronics etc.

“Coin currencies are designed globally to cater for highly repetitive transactions because of the nature and conditions under which they happen, such as crowded markets, 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 prices of this category of retail items,” Mr. Bukar explained.

Following the motion, the Senate, led by Ike Ekweremadu, resolved to urge the CBN to intensify efforts to bring coins back to the economy; and convert lower currency notes into coins to be used “side-by-side with the notes” to facilitate highly repetitive retail transactions in the country.

The Senate also urged the CBN to impose sanction on any commercial bank that rejects coins as deposit.

Nigeria’s current currency notes are: N5, N10, N20, N50, N100, N200, N500 and N1000.

Mr. Bukar did not mention exactly which ones he defined as “lower notes”.

http://www.metronaija.com/2017/05/senate-wants-cbn-to-convert-lower-naira.html

londonrivals:
The Central Bank of Nigeria should convert the country’s lower currency notes into coins to facilitate “highly repetitive” retail transactions, the Senate said Tuesday.

The advice came after a Senator spoke on the implications of rejection of the existing coin denominations for the 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,” said Mustapha Bukar, the APC Senator representing Katsina South.

Given the rejection, plus the loss of value of the coins due to inflation, Mr. Bukar, therefore, suggested conversion of the the lower notes into coins to “cater for highly repetitive transactions” which “overwhelming majority” of Nigerians are engaged in due to “location and income”.

“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,” the senator said.

“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.”

Quoting unnamed “experts”, he said coin denominations were important in helping control devaluation of country’s currency. Taking an instance from the U.S.A, he said a reason why one cent had not phased out “is due to inflationary ramifications of such a move”.

He observed that coins were still being used in advanced countries, including the United Kingdom, Japan, the European Union and the United Arab Emirates, but lamented Nigeria has now become the only country in West Africa “where there is a total absence of the coins in the economy.”

“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, vegetable etc., as well as, less frequent but high value transactions like clothing, footwear, raw foodstuff, electronics etc.

“Coin currencies are designed globally to cater for highly repetitive transactions because of the nature and conditions under which they happen, such as crowded markets, 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 prices of this category of retail items,” Mr. Bukar explained.

Following the motion, the Senate, led by Ike Ekweremadu, resolved to urge the CBN to intensify efforts to bring coins back to the economy; and convert lower currency notes into coins to be used “side-by-side with the notes” to facilitate highly repetitive retail transactions in the country.

The Senate also urged the CBN to impose sanction on any commercial bank that rejects coins as deposit.

Nigeria’s current currency notes are: N5, N10, N20, N50, N100, N200, N500 and N1000.

Mr. Bukar did not mention exactly which ones he defined as “lower notes”.

http://www.metronaija.com/2017/05/senate-wants-cbn-to-convert-lower-naira.html

ElsonMorali:
So that they can go out of circulation abi, then you'll be free to print higher denominations like #10,000 a d #20,000 notes.

Koni daa fun yin lai!

Memories12411:
I totally with the Senator. In other African countries you can buy something of 3 kwacha, meticals, etc but in Nigeria we can't add a Naira to our prices because we can't get 1, 2, 3 or 4 Naira to give as change. Because we do not use coins that is why "pure water" jumped from 5 to 10 Naira. If they sale 7 Naira, where will they get 3 Naira change to give?

nkemma54:
These fools are failing to realize that the USA also controlled devaluation by recalling their higher currency denominations ($500 note, $1000 note, $10000 note, and $100000 note; yes the USA has a $100000 note, Google is your friend), and then controlled the availability of the $200 note.
Take a cue and get rid of this damn N500 and N1000 notes, our nairas devaluation started there.
Yes, bring back the forgotten coins, great idea (but converting current lower denominations to coins is even more foolish) and see if our currency won't appreciate against the dollar.

Dottore:
This country don finish

ojun50:
Que dis people ok, who want to be carrying metal up nd down

Matrixuncovered:
They should simple reduce the value of our Notes by 1digit. Basically removing any note higher than 100 -N- from circulation, than introduce new 100 notes. So all those millions in circulation and burial ground would be useless.
This method would revert back to using 100naira notes and curb excessive plundering and Tiefing, because in practice the politicians only introduced higher note to aid stealing, can you imagine stealing 10Milla all in hunids...

madridguy:
Mr. Bukar must be high on expired Jamaica vegetable. Embezzlement is really affecting his sense of reasoning. His not suggesting how to make our economy stronger so with 50 kobo we can be getting things like biscuits, sachet water and so on and all he could think of is to face off #5 #10 #20 and #50

Bunch of rogues.

Phrankin:
This is our life now , I guess we're stuck with this set of clueless leaders. Instead of discussing on policies that will help stimulate the economy thereby making the lower notes valuable again, they're there talking about UK, coins and US. Mr senator, I want to ask you. When you traveled to UK and the United States, was it only coins that you saw? Didn't you see good roads, and I heard they also have constant electricity. How about their leaders, I heard they're accountable to the citizens.