CBN launches eNaira, mints N500m; Buhari says CBDC will boost Nigeria’s GDP by $29bn in 10 years

The Central Bank of Nigeria (CBN), on Monday, has launched the Digital Currency (CBDC) eNaira at the State house, the Nation’s capital, Abuja.

The Central Bank Digital Currency (CBDC) eNaira took off with over N500m of the currency minted so far.

The Central Bank of Nigeria(CBN) Governor Godwin Emefiele said 33 banks have been fully integrated and live on the platform.

Speaking at the launch of the eNaira in Abuja on Monday, Emefiele disclosed that over 2.5 million people visit the website daily.

He said another N200 million has been issued to financial institutions.

Over 2,000 customers have been onboarded and 120 merchants have successfully registered on the eNaira platform, Emefiele stated.

Immediately after the launch, Emefiele revealed that “customers who download the eNaira Speed Wallet App will be able to perform the following: onboard and create their wallet; fund their eNaira wallet from their bank account; transfer eNaira from their wallet to another wallet and make payment for purchases at registered merchant locations.”

The CBN, he said, “will continue to refine, fine-tune and upgrade the eNaira” and he assured that “Nigerians should expect to see additional functionalities in the coming months”.

Some of the additional functionalities include: accessibility and onboarding of customers without BVN and the use of the eNaira on the phone without the internet to further drive financial inclusion, making Nigeria one of the first countries in the world to deploy the CBDC via USSD on phones without relying on internet connectivity.

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Another feature that will be deployed by the eNaira is the “onboarding of revenue collection agencies to increase and simplify collections and the creation of sector-specific tokens to support the Federal Government’s social programmes and distribution of targeted welfare schemes in a bid to lift millions out of poverty by 2025”.

Meanwhile, President Muhammadu Buhari says eNaira and its underlying technology, called blockchain, can increase Nigeria’s GDP by $29 billion over the next 10 years.

Speaking while unveiling eNaira on Monday in Abuja, Buhari said Nigeria’s digital currency will help move people and businesses from the informal into the formal sector, thereby increasing the tax base of the country.

He said eNaira would cater for businesses and households seeking faster and cheaper means of payment instead of “private currencies” that have gained popularity and acceptance across the world, including Nigeria.

“In recent times, Your Excellencies, the use of physical cash in conducting business and making payments has been on the decline. This trend has been exacerbated by the onset of the COVID-19 pandemic and the resurgence of a new Digital Economy,” Buhari said.

“Alongside these developments, businesses, households, and other economic agents have sought new means of making payments in the new circumstances.

“The absence of a swift and effective solution to these requirements, as well as fears that Central Banks’ actions sometimes lead to hyperinflation created the space for non-government entities to establish new forms of “private currencies” that seemed to have gained popularity and acceptance across the world, including here in Nigeria.

“In response to these developments, an overwhelming majority of Central Banks across the world have started to consider issuing digital currencies in order to cater for businesses and households seeking faster, safer, easier and cheaper means of payments.”

The president added that the benefits of digital currencies cut across different sectors of and concerns of the economy.

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“Let me note that aside from the global trend to create Digital Currencies, we believe that there are Nigeria-specific benefits that cut across different sectors of and concerns of the economy,” he added.

“Alongside digital innovations, Central Bank Digital Currency (CBDC) can foster economic growth through better economic activities. Indeed, some estimates indicate that the adoption of CBDC and its underlying technology, called blockchain, can increase Nigeria’s GDP by US$29 billion over the next 10 years.

“CBDCs can also help increase remittances, foster cross border trade, improve financial inclusion, make Monetary Policy more effective, and enable the government to send direct payments to citizens eligible for specific welfare programmes.

“It is on this basis that I am delighted to officially launch the Central Bank of Nigeria Digital Currency, called the eNaira, and in so doing, we have become the first country in Africa and one of the first in the world to introduce a Digital Currency to her citizens.”

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