Banks in Nigeria no longer dispense lower naira denominations with the excuse that they hardly receive them from the Central Bank of Nigeria ..Now the Senate is investigating the scarcity of lower naira denominations, which the lawmakers consider as a threat to the country’s economy.
The scarce denominations are N5, N10, N20, N50, N100 and N200.
Following the adoption of a motion moved by Senator Peter Nwaoboshi entitled: ‘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 solutions to the issue and report back within two weeks.
In the motion, Nwaoboshi stated, “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 the 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 senator stressed that the lower denominations were printed and procured outside the country with the attendant economic and security implications.