The Senate is investigating the scarcity of lower naira denominations, which the lawmakers considered a threat to the economy.

The denominations are N5, N10, N20, N50, N100 and N200.

Following the adoption of a motion by Senator Peter Nwaoboshi (Delta-North) titled, ‘Scarcity of Lower Denomination Currency Notes,’ the Senate resolved to mandate the joint Committee on Banking, Insurance and Other Financial Institutions; and Finance to investigate the scarcity.

The committee was further asked to proffer lasting solution to the issue and report back within two weeks.

In the motion, Nwaoboshi said, “The Senate notes with serious concern the protracted scarcity of lower naira denominations.

“It is concerned that scarcity of N5, N10, N20, N50, N100 and N200 notes poses a severe threat to the economy of the nation, which is just recovering from recession, as it is worsening inflationary trends, with attendant consequences.

“The Senate notes that the nation’s currency is highly essential and critical in national development; and if mismanaged, the economy is doomed with adverse effect on the people and the nation.

“The Senate is worried that banks in Nigeria no longer dispense lower naira denominations, with the excuse that they hardly receive them from the Central Bank of Nigeria.

“The Senate is worried also that reports in the media over the issue are not cheery at all.”

The senator stressed that the lower denominations were printed and procured outside the country with the attendant economic and security implications.

“The Senate notes further that if the situation is not remedied urgently, it may lead to total collapse of the economy,” Nwaoboshi stated.

Seconding the motion, Senator Magnus Abe stated that the lower denominations remained a legal tender in the country and decried their scarcity in the polity.

Abe warned that deliberate attempts by some forces to reject the lower denominations from effective circulation might make currency regulators to lose control of the process.

BeeBeeOoh:


http://punchng.com/senate-probes-scarcity-of-lower-naira-denominations/

BeeBeeOoh:


http://punchng.com/senate-probes-scarcity-of-lower-naira-denominations/

iambijo:
What's the use of small denomination currency if petrol is being sold at 200naira+

princepeter566:
very soon someone will come and blame PDP for this, just watch out from Lai ( lie ) Muhammed.

Cromcruach91:
Hmmm

There is nothing to probe.

The simple reason for scarcity of lower denomination notes is that CBN, in order to reduce printing costs and inflation deliberately prints higher denomination notes , the better to save more for Nigeria.

Nigeria has to fundamentally change its economy from a consumerist to a producer-type economy, with high levels of exporting manufactured goods in order to break free of the cycle of money scarcity and inflation...then we can print lower denomination notes all we like..

agarawu23:
you don't understand economics. This isn't about fuel price

Chibabe1:
Our currency notes are like products. When there's demand for a particular product it will be in circulation. Now, it's no longer news that it's difficult to find commodities that N5, N10, N20 or coins can afford and as such scarcity of such denominations. First thing I think the government should do is make commodities to be affordable for consumers then have these denominations produced and circulated.