The Central Bank of Nigeria plans to broaden the use of its digital currency, eNaira, to streamline payments into government accounts and enable Ministries, Departments, and Agencies to process vendor and beneficiary payments.
This initiative is outlined in the CBN’s newly released Monetary, Credit, Foreign Trade, and Exchange Policy Guidelines for Fiscal Years 2024-2025.
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 ongoing efforts to enhance the adoption of eNaira across both public and private sectors.
In addition to facilitating payments, the CBN’s guidelines outline other enhancements for eNaira.
These include collaborating with both federal and state governments to boost adoption and deploying eNaira version 2.0, which aims to expand the involvement of deposit money banks in its usage.
Other planned features for eNaira include offline functionality and programmable money, which will enhance its integration 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 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 part of the country’s efforts to drive financial inclusion. The digital naira is anticipated to support the Central Bank of Nigeria’s cashless policy by promoting more widespread use of digital payments.
