‘eNaira fast, reliable, supports digital economy’

eClement Nwoji, a public affairs commentator has listed the benefits of the eNaira to include the facilitation of fast, cheap, reliable payment systems as well as the support of the digital economy thereby improving economic activities.

Nwoji in an article titled: ‘CBN, banks, and multifunctional uses of eNaira’, said there is a growing certainty about the multiple uses of Nigeria’s e-currency which stems from the ever-expanding developments in digitalisation and the need for a secured means of effecting transactions across international borders.

He said the eNaira is also expected to simplify and ease cross-border payments and trade, enable the inclusion of the excluded in the financial system, improve the effectiveness of monetary policies, as well as ease tax remittance and collection to support the country’s growth

“Aside from the inherent advantages of the eNaira to the public and users, the introduction of the nation’s digital currency does not entail usurping the customers of the commercial banks by the apex bank but rather building more synergy with financial institutions.

“The framework of eNaira is such that it entrenches many pipelines of collaboration and further strengthens financial institutions’ core service delivery just as it boosts access to more financially excluded people. By its very nature with regards to its mandates, eNaira enhances the structures of these institutions instead of replacing them.

“The eNaira opens new frontiers of profitable partnership for progressive innovations by the Deposit Money Banks (DMB) and introduces a whole new market of digital currency users for financial institutions to increase their customer base and add value to their account owners.

“As the financial institutions act as bridges between customers and the CBN, this increased customer interaction stimulates the banks to adopt better customer support models. The CBN guarantees funds to the financial institutions with the eNaira maximum daily cumulative limit which restricts customers from total migration that may result in capital loss for financial institutions,” Nwoji stated.

He said, in terms of security, the eNaira has intrinsic security embedded design and is integrated with the best fraud management system, which guarantees the security of transactions and fosters customers’ trust.

Read also: eNaira: CBDCs can’t win unless available everywhere – Report

According to him, it seamlessly reduced the difficulties encountered on daily basis by financial institutions in the course of “Know Your Customers” (KYCs) processes which is made possible with ease by giving every linked financial institution access to the database of customers with wallets domiciled in their banks.

“The eNaira is same Naira but with more efficient possibilities. This is justified by the fact that with it, the users/customers can move money from their bank account to their eNaira wallet with ease. It is designed to assist customers to monitor their eNaira wallet, check balances and view transaction history as well as send and receive money faster at very minimal costs. Verifying of payments and looking up of transaction history anytime, anywhere are also attributes of the e-currency,” Nwoji said.

According to statistics by the PwC Global CBDC and Stable coin Overview 2022 released on April 4, 2022, more than 80 percent of central banks are considering launching a CBDC or have already done so either for retail or wholesale payments.

The eNaira which was formally launched and introduced to the public by President Muhammadu Buhari on October 25, 2021, has thus far, gained international applause and recognition, due to the ingenuity of the CBN’s foresight of ‘midwifing’ the currency in conformity with global monetary and transactional digital exigencies,” Nwoji added.