Re-denominate currencies into coins to increase bargaining power, FG urged

The Director-General, Lagos Chambers of Commerce and Industry (LCCI), Mr Muda Yusuf, has urged the Federal Government to re-denominate N5, N10 and N20 into coins to increase their bargaining power.

Yusuf said that the re-denomination would also prevent the coin from going into extinction.

According to him, apart from the re-denomination, the government should embark on campaign to re-orientate Nigerians on the benefits of coins.

He said that the use of coins would make pricing more efficient.

The LCCI boss said the habit of foregoing a change after any purchase could encourage corruption in the country.

Yusuf said that the inadequate use of coins in the system had made prices to go up.

He added that unacceptability of the present coins had contributed to the low purchasing power of the coin.

He said that instead, pricing had been generally adjusted round digits of N5 or N10 rather than in kobo.

Yusuf reiterated that re-denomination would increase the value of one kobo and also correct the distortion in the pricing structure.

According to him, re-denomination will have enormous impact on the nation’s economy by checking inflation.

“Besides, it will discourage the abuse of the naira as those small denominations in polymer notes that frequently exchange hands would be in coins.

Yusuf stressed that the re-denomination would reduce the clamour for the printing of more notes, particularly the small denominations that were defaced and mutilated as they would be in coins.