The Central Bank of Nigeria (CBN) plans to broaden the application of its digital currency, eNaira, to enable payments into government accounts and allow Ministries, Departments, and Agencies (MDAs) to process vendor and beneficiary payments.
This is according to the CBN’s newly released Monetary, Credit, Foreign Trade, and Exchange Policy Guidelines for Fiscal Years 2024-2025 document.
According to the document, “The CBN shall continue to work towards enabling the use of eNaira Wallet/Channels by payers to pay into government accounts at the CBN, and, allow Ministries, Departments, and Agencies (MDAs) to initiate vendor/beneficiary payments from their respective eNaira Wallets.”
This development is part of the CBN’s continued efforts to enhance the adoption of eNaira in both the public and private sectors.
In addition to facilitating payments, the CBN’s guidelines detail other enhancements for the eNaira.
These include collaboration with both federal and state governments to drive adoption, as well as the deployment of eNaira version 2.0, which focuses on expanding the role of deposit money banks in its usage.
Other planned features include offline functionality which will further integrate the eNaira into both online and offline government activities.
The document noted, “The CBN issues and regulates the eNaira, a digital form of the fiat currency. The eNaira offers several benefits which includes faster and cheaper payments, increased financial inclusion, and reduced fraud, amongst others.
“The CBN shall sustain efforts in enhancing the eNaira and driving its adoption. This includes the deployment of eNaira version 2.0 with a focus on wholesale Central Bank Digital Currency (CBDC) to increase the participation of deposit money banks and empower them to drive its adoption; implementation of offline functionality, programmable money; and more collaboration with Federal and State Governments to increase its adoption.”
Nigeria’s Central Bank Digital Currency, eNaira, was launched in October 2021 as one of the country’s initiatives to drive financial inclusion.
The digital version of the naira is expected to boost the cashless policy of the CBN.
Nigeria has been listed as one of the top 3 countries in the world where Central Bank Digital Currency (CBDC) has gained momentum as 44 other countries are starting their pilot phase.
The International Monetary Fund (IMF) scored the eNaira low on adoption, citing slow growth in eNaira wallet downloads among retail users.
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