TechPression

Tag: eNaira

  • FG plans cNGN Stablecoin in Nigeria

    FG plans cNGN Stablecoin in Nigeria

    In a strategic leap forward, the Nigerian government has unveiled plans to roll out the cNGN stablecoin on February 27, 2024.

    Backed by the Central Bank of Nigeria (CBN), this digital currency is aimed at bringing stability to the unpredictable naira, currently grappling with the unenviable title of Africa’s weakest currency and the third weakest globally.

    According to a statement from Dayo Olusegun, an aide to the Nigerian President, the cNGN is poised to revolutionize global transactions. Users can expect to navigate a borderless financial world, making seamless transactions worldwide using the naira and even buying and selling goods at the official CBN rate. It’s a move set to simplify currency conversion and bid adieu to those pesky international transaction fees – a game-changer indeed.

    Read also: CBN emphasizes eNaira as digital payment option for Diasporas remittances

    Naira vs. Dollar: cNGN’s Unique Path

    Comparing the cNGN to stablecoins like USDT and USDC reveals a notable distinction. Unlike its counterparts pegged to the steadfast US dollar, the cNGN ties its fate to the naira’s inherent instability. Tayo Oviosu, the brains behind Paga Communications, sums it up concisely, stating, “The stablecoin we need is a stable naira to the USD.” It’s a straightforward acknowledgment of the need for stability in the dynamic world of currencies.

    Imagine stablecoins as serene islands in the turbulent sea of cryptocurrencies, their value tethered to stable assets. However, pegging the cNGN to the naira introduces an element of unpredictability. The naira’s notorious reputation for volatility raises eyebrows, leaving investors cautiously optimistic about the sought-after stability.

    CBN’s Grand Vision: cNGN as the Global Currency

    The official statement underscores that the cNGN is a crucial component of the CBN’s grand vision – turning the naira into a globally trusted currency. This proclamation highlights the CBN’s commitment to positioning the naira as a reliable asset for investors across the globe.

    Significantly, the cNGN takes the reins as a successor to the eNaira, a project that absorbed substantial investments under Governor Godwin Emefiele. Departing from the eNaira’s solo journey, the cNGN is entrusted to the Africa Stablecoin Consortium (ASC), signaling a shift toward collaborative innovation.

    Insiders hint at the cNGN’s adaptability, showcasing interoperability with strategic blockchains like Bantu and Binance Smart Chain. This flexibility underscores its potential seamless integration within the vast crypto landscape.

    As the countdown to February 27, 2024, begins, Nigeria braces for a paradigm shift in its financial narrative. The cNGN stands at the threshold, ready to challenge norms, redefine stablecoins, and etch its mark in the ever-evolving world of cryptocurrency.

    A Historical Reminder – Crypto Under Buhari’s Administration

    In the annals of Nigeria’s recent crypto history, the regulatory landscape witnessed a significant shift during the tenure of President Muhammadu Buhari. Under his administration, specific regulatory constraints were imposed on cryptocurrencies, adding a nuanced layer to the historical canvas shaping Nigeria’s present crypto narrative. This period marked an unexpected turn, underscoring the intricate interplay between policy decisions and the evolving crypto landscape in the country.

    Recall that in a series of regulatory moves under President Buhari’s administration, the Central Bank of Nigeria (CBN) took a significant step on February 5, 2021. The CBN, through its Directors of Banking Supervision and Payments System Management, Bello Hassan and Musa I. Jomoh, issued a statement prohibiting all financial institutions in Nigeria from dealing in cryptocurrencies. This decision aimed to curb the use of digital currencies, citing concerns about money laundering, terrorism financing, and illegal activities facilitated by the anonymity of cryptocurrencies.

    The ban, enforced with severe regulatory sanctions for breaches, stirred controversy, particularly among the youth. The move followed a surge in cryptocurrency usage during the #EndSARS protests in 2020, driven by the need for alternative financial channels when traditional platforms faced restrictions.

    Surprisingly, on the eve of the Buhari-led government’s exit in 2023, a twist emerged. Despite the historical aversion to crypto, the government introduced a new law to tax gains on digital assets, including cryptocurrency. The amendment to the 2022 Finance Act now imposes a 10% tax on profits from digital assets, reflecting a nuanced shift in the government’s approach to cryptocurrency regulation.

    This move raises questions about the government’s evolving stance on crypto, marking a departure from outright prohibition to a regulatory framework that incorporates taxation. As Nigeria navigates this evolving crypto landscape, it remains to be seen how these measures will impact the burgeoning digital currency ecosystem.

  • Nigerian Central Bank adds NFC to eNaira for contactless payments

    Nigerian Central Bank adds NFC to eNaira for contactless payments

    The Nigeria Central Bank Digital Currency (CBDC) initiative, also known as eNaira, remains engaged despite recent transitions in leadership at the Central Bank of Nigeria (CBN). 

    The CBDC mobile app now has Near Field Communication (NFC) integration, which the CBN hopes will boost adoption rates and provide a better user experience.

    Near-field communication (NFC) enables mobile devices and payment terminals to interact while in close proximity, enabling seamless, contactless eNaira transactions. The initiative is part of the CBN’s efforts to modernise and align the eNaira platform with global standards.

    The recent NFC enhancement to the eNaira app is anticipated to boost the CBDC’s adoption rates, which had previously relied on QR codes. CBN’s risk management department deputy director Joseph Angaye stressed the banking regulator’s dedication to using innovative technologies to improve the customer experience.

    The CBN’s efforts to implement programmability into the CBDC have resulted in improved safety and more accurate fund allocation. The potential for fraud is mitigated if CBDC funding is restricted to certain government initiatives. Allocating funds for certain tasks, like the purchase of tools, is helpful for some groups of people. This method promotes transparency and use consistency by making sure eNaira wallet funds cannot be used for anything other than their intended purpose.

    Read also: CBN emphasizes eNaira as digital payment option for Diasporas remittances

    Promoting eNaira to global standards 

    Angaye highlighted the many benefits of CBDCs for retail customers in Nigeria, such as reducing settlement risks and facilitating quick transaction processing. With the eNaira, Nigeria intends to solve the problem of financial exclusion, and other economies could benefit from Nigeria’s foresight in embracing CBDCs.

    Former Central Bank of Nigeria Governor Godwin Emefiele said that the delayed acceptance was due to commercial banks putting profit before the expansion of the eNaira. The CBN, however, is still intent on bolstering the CBDC program and overcoming acceptance barriers.

    The CBN’s dedication to being at the forefront of digital currency innovation is reaffirmed by Joseph Angaye’s praise for Nigeria’s digital currency infrastructure. The CBN’s determination to meet the financial demands of its customers and ensure the eNaira is up to global standards is seen by its emphasis on user experience and the use of cutting-edge technology comparable to NFC.

    CBN’s partnership with the University of Abuja demonstrates its dedication to researching the potential of digital money as eNaira expands. The accounting industry may undergo a radical transformation attributable to the NFC innovation, and it will likely be used more widely across industries.

    The Central Bank of Nigeria plans to use NFC technology to make eNaira the world’s preeminent digital currency, with the hope that it would serve as a model for other nations considering CBDC implementation.

    CBN educates states, institutions on eNaira

    What to know about eNaira

    Nigeria developed its eNaira in 2021 to join a select club of nations that provide CBDCs. However, acceptance rates have been lower than anticipated, forcing the central bank to explore other strategies to increase inclusion.

    The USSD feature was part of the package that the central bank began promoting for usage in the transportation industry. Godwin Emefiele, a former governor of the Central Bank of Nigeria, has said that commercial banks are to blame for eNaira’s slow adoption rate.

  • CBN emphasizes eNaira as digital payment option for Diasporas remittances

    CBN emphasizes eNaira as digital payment option for Diasporas remittances

    The Central Bank of Nigeria (CBN) has taken a significant step in advancing its efforts to liberalize the payout of diaspora remittance with eNaira. 

    In a circular titled “Operational Framework for eNaira Payment Option to Recipients of Diaspora Remittances,” dated June 15, 2023, the CBN announced the introduction of its digital currency, the eNaira, as a payment alternative. 

    This move aims to enhance financial inclusion, reduce transaction costs, and improve payment efficiency. This article explores the guidelines and benefits of the eNaira for diaspora remittances.

    Read also: CBN educates states, institutions on eNaira

    Guidelines for eNaira Payment Option

    To facilitate the payment of diaspora remittance proceeds to recipients who opt for the eNaira, the CBN has provided specific guidelines. 

    The International Money Transfer Operators (IMTOs) are required to apply for a one-time “No-Objection” from the CBN to pay out in eNaira. Additionally, the IMTOs must transfer the foreign currency to designated CBN accounts. 

    Importantly, the receipt of diaspora remittances in eNaira remains optional, and recipients can still choose the traditional dollar payout.

    Payment Procedure

    Under the eNaira framework, IMTOs are mandated to open merchant wallets through the CBN and pre-fund them with foreign currency. Subsequently, the CBN will credit the IMTO merchant wallets with the eNaira equivalent of the pre-funded foreign currency. 

    To initiate a diaspora transfer, the sender provides the beneficiary’s wallet details to the chosen IMTO. The IMTO then accesses the eNaira web wallet portal, debits its merchant wallet, and credits the beneficiary’s wallet with the eNaira equivalent of the foreign currency based on the I&E window rate. 

    Alternatively, IMTOs can integrate with the eNaira portal via API provided by the CBN for seamless transfers.

    Advantages of eNaira for Diaspora Remittances

    The introduction of the eNaira brings numerous benefits to the diaspora remittance ecosystem. 

    Firstly, it reduces the cost of financial transactions by eliminating intermediaries and associated fees. 

    Secondly, it enhances the efficiency of payments, enabling faster and more secure transactions. 

    The eNaira also aligns with the broader goal of financial inclusion by providing a convenient and accessible digital payment option for recipients. Furthermore, the initiative promotes a cashless economy and complements previous monetary policies and existing payment platforms.

    Nigeria Negotiates with Potential Partners on Best Management System for eNaira

    eNaira and its Impact

    Unveiled on October 25, 2021, by former President Muhammadu Buhari, the eNaira is a digital currency aimed at driving a more cashless, inclusive, and digital economy. 

    As a legal tender in Nigeria, the eNaira holds the same value as the physical Naira and can be exchanged at a rate of 1 naira to 1 eNaira. 

    By supporting a resilient payment system ecosystem, the eNaira encourages financial inclusion, reduces cash processing costs, facilitates welfare interventions, and improves revenue and tax collection. Moreover, it streamlines the remittance process, benefiting both senders and recipients.

    Major stride towards financial innovation

    The Central Bank of Nigeria’s introduction of eNaira as a digital payment option for diaspora remittances signifies a major stride towards financial innovation. The guidelines provided in the circular facilitate a smooth transition to eNaira payments, while the benefits include reduced transaction costs, enhanced payment efficiency, and increased financial inclusion. As Nigeria embraces the eNaira, it is poised to foster a more resilient, inclusive, and digitized economy, driving progress in the nation’s financial landscape.

  • CBN educates states, institutions on eNaira

    CBN educates states, institutions on eNaira

    The Central Bank of Nigeria (CBN) has sent various teams to different states to undertake awareness campaigns regarding its digital currency, eNaira, in order to encourage the usage of digital payments and discourage physical cash transactions.

    The Central Bank of Nigeria (CBN) is urging Nigerians to embrace the eNaira as part of the government’s cashless policy drive.

    Sensitization campaign in Rivers

    During a two-day sensitization program on eNaira held at the University of Port Harcourt and the Rivers State-owned Ignatius Ajuru University of Education (IAUE), the CBN, in collaboration with Zenith Bank, urged for the adoption of eNaira as an alternative financial transaction method in the country. 

    The Port Harcourt Branch Controller of CBN, Mr. Maxwell Okorafor, stated that the main objective of the event was to offer comprehensive information to students and the general public about eNaira.

    According to him, the introduction of eNaira aims to simplify financial transactions for Nigerians and enhance the country’s economy. 

    He further clarified that eNaira is cost-effective and offers numerous advantages, such as curbing financial crimes, decreasing money laundering and other forms of financial fraud, as well as ensuring transparency in monetary policies. 

    Additionally, Okorafor emphasized that the adoption of eNaira will bring about benefits to institutions, particularly in the payment of fees, while also decreasing the cost of policy management.

    “We are here to introduce the CBN Cryptocurrency, known as eNaira. eNaira is nothing other than the naira in your palm and in your wallet. Whatever you can do with the money in your pocket and your wallet, you can also do with eNaira.” Okoroafor said.

    Read also: CBN, ANAACOP Unveil Agro eNaira Digital Currency, Target 5m Farmers

    Kaduna sensitization campaign

    In Kaduna, the CBN said the overall pursuit of a cashless economy is one of the reasons it has been aggressively encouraging Nigerians to get on board the eNaira platform and get used to life without physical cash.

    Addressing a group of potential agents in the Malali area of Kaduna on the viability of the eNaira, a Deputy Director in the CBN, Mallam Muhammad Hamisu Musa, said that e-Naira is representing the same physical cash they are familiar with irrespective of the fact that the digital currency cannot be touched or felt like its physical counterpart.

    “The other important thing you all need to know is that the Central Bank is not a profit making organisation and we are not engaged in giving loans by floating eNaira. Using eNaira does not command bank charges. It is meant to facilitate better and faster transactions and then reduce the issues we are having with physical money like armed robbery, money laundering, kidnapping, fire incidents and so on.

    “And you know, with the eNaira, you can pay money exactly as you owe, to the exact amount that the services or products you are purchasing, like you can pay it up to the last kobo. Whereas with physical money that we are used to you cannot do that because people will start looking for change which is difficult to get,” he said.

    The apex Bank officials were in Kaduna over a two-day period in the company of its partner agent for the state, Aymaa Global Ventures, which recruited the participants for the sensitisation events.

    The team was also at the palace of the District Head of Kawo, Kawo Market and also Central Market, all in Kaduna, on Thursday where hundreds of enthusiastic market women and leaders engaged them in a robust question and answer session.

    The highlight of each of the sessions was the fact that all the participants had their eNaira wallets opened for them by the CBN and Aymaa officials.

    CBN Records 700,000 transactions worth N8 billion on eNaira

    The CBN is running campaigns at the University of Nigeria

    The Central Bank of Nigeria’s (CBN) cashless policy sensitisation programme was recently applauded by the University of Nigeria, Nsukka (UNN).

    According to Mr Chika Ugwueze, Assistant Director of Payments System Management Department, CBN, eNaira is the digital equivalent of the physical naira that may be used for all transactions, hence helping the implementation of the cashless policy.

    He went on to say that, unlike the old naira, the eNaira cannot be physically held. However, for monetary transactions, both currencies can be used interchangeably.

    “We chose UNN for the sensitization seminar because it is one of the country’s oldest premier universities with a large population of students and staff,” he explained.

    “eNaira will reduce the risk of theft and loss while also making money transactions easier to track and monitor.”

    “In eNaira, you are opening a direct account with CBN, just like you would in a commercial bank, and you can rest assured that your money is safe and in a more secure and efficient financial system.”

    “Also, in the event of a commercial bank’s liquidation, payment of money to customers may take longer than necessary or even be lost, whereas in eNaira your money is secure any day, any time as long as Nigeria exists,” he added.

  • Nigeria Negotiates with Potential Partners on Best Management System for eNaira

    Nigeria Negotiates with Potential Partners on Best Management System for eNaira

    Nigeria is in communication with new possible technology partners to develop a better system for operating and managing its Central Bank’s Digital Currency (CBDC), known as eNaira.

    This development was disclosed by a media company report, Bloomberg’s this week.

    The Central Bank of Nigeria (CBN) created the eNaira in collaboration with Bitt Inc., a financial technology startup that provides digital currency solutions to central banks and financial institutions in the United States. Nigeria became the first African country to implement a CBDC when it went into effect in October 2021.

    According to the study, the issue is not with the technology’s operation but with who owns it. It states that CBN wants to develop its own software for digital money so that it may maintain complete control of the initiative, and they have discussed ideas for the development of new proprietary technology with R3, a worldwide enterprise technology and services corporation headquartered in New York.

    The eNaira rollout was planned in three phases, according to Bitt’s website, and they are currently in phase two, which involves “onboarding banked customers and merchants, as well as integrating and optimizing core banking systems to facilitate transactions throughout the existing eNaira ecosystem.” Integrations with the National Payment Service for QR functionality and wholesale money transfer, text-messaging connectivity with the CBN’s SMS gateway service, and security reinforcement are other aims for this phase.

    Read also: CBN Records 700,000 transactions worth N8 billion on eNaira

    The third phase would feature the integration of a Nigerian trade and exchange platform, the distribution of sector-specific tokens for grants and subsidies, and the introduction of programmable eNaira payments for various payment situations.

    According to the sources, the new technology partner, whether R3 or another company, would not be expected to take Bitt’s role immediately but would instead collaborate with CBN to achieve their long-term goal of “controlling the underlying technology.”

    The eNaira’s implementation is not progressing as planned about a year and a half after its inception, with barely 0.5% of Nigeria’s 217 million inhabitants using the CBDC. The public’s slow adoption of the eNaira caused the central bank to impose withdrawal limitations on the amount of cash residents can withdraw from their bank accounts in an effort to push its “cash-less Nigeria” goal and increase eNaira use.

    Introduction Of New Naira Notes

    Under the new legislation, which went into effect on January 9, citizens can only withdraw a maximum of 20,000 naira (about $43.50) from cash machines every day, with a weekly limit of 100,000 naira (approximately $217). In order to combat inflation and money laundering, the CBN also released new naira banknotes.

    Originally, Nigerians had until January 24 to exchange their old, higher denomination bank notes for the new currency, but due to distribution issues, the CBN announced that the deadline for exchanging old naira currency notes would be extended by 10 days to “allow more of those in rural communities to exchange the old notes,” according to CBN Governor Godwin Emefiele.

    Nigerians had until February 10 to return 1,000, 500, and 200 naira bills. Naira holders would have a further seven days after that date to deposit old notes directly with the CBN. Any old bills still in circulation as of February 17 are null and void.

    Nigeria’s populace is thought to be the most crypto-savvy on the African continent, with the country ranking first in Africa for crypto adoption and eleventh internationally. In 2022, moreover, a third (35%) of the Nigerian population aged 18 to 60 reported owning or trading cryptos.

    The recent depreciation of the national currency, combined with restrictions on the amount of cash citizens can withdraw from ATMs, has led to a surge in demand for Bitcoin (BTC). Earlier this month, the price of one Bitcoin was 17.5 million NGN, or $38,010, on the Nigerian crypto exchange NairaEX. This amounts to a 64% premium over the market price of Bitcoin.

    Clickatell partners with CBN to expand eNaira services

    Nigeria is also developing new restrictions for non-governmental cryptocurrency. On December 18, Nigeria’s Chairman of the Committee on Capital Markets and Institutions, Babangida Ibrahim, stated that the country’s House of Representatives is aiming to approve new legislation that will allow cryptocurrencies to be used in a variety of ways in Africa’s largest economy.

    The Investments and Securities Act, 2007 (Amendment) Bill, if passed and signed into law, will allow Nigeria’s Securities and Exchange Commission to recognize cryptocurrencies and other digital assets as “capital for investment,” as well as define the regulatory roles of the SEC and the Central Bank of Nigeria (CBN) in relation to crypto.

  • CBN Records 700,000 transactions worth N8 billion on eNaira

    CBN Records 700,000 transactions worth N8 billion on eNaira

    The Central Bank of Nigeria (CBN) announced that the eNaira platform processed 700,000 transactions worth a total of N8 billion in its first year. The information was disclosed during the celebration of the digital currency’s first anniversary.

    The eNaira is a central bank digital currency (CBDC) that will be issued as legal tender by the Central Bank of Nigeria. The currency will be introduced in October 2021. It is the electronic representation of the Naira and functions in the same way as currency.

    In his keynote address, the Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, said, “I am delighted to be here today to celebrate yet another milestone in our journey towards transforming Nigeria to a digital economy, and most importantly building the future monetary system of our country in response to the emerging trends and developments in the global digital space.” “I am delighted to be here today to celebrate yet another milestone in our journey toward transforming Nigeria to a digital economy,” Emefiele said.

    “Since its inception, the eNaira has offered Nigerians unlimited possibilities in terms of accessing financial services. In doing so, it has lived up to the selected tagline, “Same Naira, More Possibilities,” in addition to achieving some of the goals that were originally established.”

    Read also: Clickatell partners with CBN to expand eNaira services

    CBN and eNaira

    It is anticipated that the introduction of the eNaira will “enhance financial inclusion,” “support poverty reduction,” “enable direct welfare disbursement to citizens,” “support a resilient payments ecosystem,” “improve availability and usability of central bank money,” “facilitate diaspora remittances,” “reduce the cost of processing cash,” and “reduce the cost of and improve the efficiency of cross-border payment,” amongst other benefits.

    “More specifically, there has been an immense interest and supportive response from parties across the world, including Nigerians, as shown by the following milestones:

    “33 financial institutions are now completely integrated and operational on the platform. The bank has successfully produced N3.00 billion worth of new currency. It has been distributed in the amount of N2.10 billion to various financial institutions. Onboarding has been completed for about one million (919,000) users. Over 3,305 retailers from all over the country have been able to successfully register their businesses on the eNaira platform. Some of these retailers include Shoprite, Sahad Stores, A.A. Rano fuelling stations, Fraser Suites, and November Cubes.”

    On the site, over 700,000 transactions having a total value of around N8.00 billion have been logged. Over 2.5 million people visit the eNaira website each and every day.

    The Governor of the Central Bank of Nigeria (CBN) claimed that the eNaira would utilize the enormous mobile telecom membership base, which stood at 150 million in June to bring more Nigerians into the financial sphere.

    Emefiele stated that in the future, the eNaira will collaborate with the Ministry of Humanitarian Affairs through the creation of sector-specific tokens to support the Federal Government’s social programs and distribution of targeted welfare schemes in an effort to lift millions of people out of poverty by the year 2025.

    The Central Bank Of Nigeria Unveils USSD Code For eNaira Transactions

    More about eNaira

    eNaira is a digital currency issued as legal tender by the Central Bank of Nigeria. It is a central bank digital currency (CBDC), which means it is backed by law and the full sovereignty of Nigeria. It is the electronic representation of the Naira and can be utilized in the same manner as currency. eNaira can be stored in a digital wallet, which is referred to as an eNaira wallet.

    Compared to cash payments, the eNaira has the advantage of serving as both a medium of exchange and a store of value. This makes it a more desirable option for use in retail transactions. eNaira is distinguished from other types of central bank money by its extraordinary and unique operational framework, which sets it apart from other forms of money.

    The blockchain technology that underpins the eNaira is identical to that which underpins Bitcoin and Ethereum. Like those cryptocurrencies, the eNaira is kept in digital wallets and can be used to conduct financial transactions. Additionally, the eNaira can be transferred digitally to virtually anyone in the world who possesses an eNaira wallet at almost no cost.

  • Clickatell partners with CBN to expand eNaira services

    Clickatell partners with CBN to expand eNaira services

    The Central Bank of Nigeria (CBN) has partnered with Clickatell, an international fintech company, to boost its eNaira services. This means that Clickatell will be the technical partner for the CBN’s digital currency, eNaira, which will be announced later this year. All Nigerians will be able to get fast, easy, and cheap banking services through the USSD channel, even if they don’t have data and are using a different phone. 

    This partnership will help the country achieve its goal of increasing financial inclusion by making sure that all Nigerians have access to basic banking services.

    Nigeria eNaira

    Nigerian President Muhammadu Buhari introduced the eNaira in October 2021. He said that Africa’s first digital currency backed by a central bank would help increase remittances, make cross-border trade more accessible, and make it easier for the government to pay out welfare.

    He also said that he thinks the CBDC will increase the country’s GDP by $29 billion over the next ten years. Financial inclusion is at the heart of the eNaira goals, so he thinks the CBDC will help the country achieve those goals.

    Mr Daniel Awe, Head of AFF, to the News Agency of Nigeria (NAN), also affirmed that “Introducing the USSD short code allows non-banked Nigerians, many of whom do not have smartphones, to access cashless banking services and is a big win for the stated goals of delivering meaningful financial inclusion.”

    Read also: Nigeria’s Central Bank Partner AFF To Deepen eNaira

    One of the major achievements of our engagements in Nigeria has been the role Clickatell played in making this a reality. Uzo Nwani, Clickatell’s Commercial Director for West Africa, said that the country should use the eNaira more often because it has helped more people access money, improved the digital economy, and boosted economic activity.

    How will the eNaira work?

    In a presentation to Nigerian banks, the CBN went into more detail about how the eNaira project is designed and works. The event addresses the currency’s operational integrity.

    In the full presentation about the e-Naira initiative that was given to Nigerian banks, it was said that there would be a limit on the number of transactions that clients could make, that CBDC accounts would not earn interest, and that there would be a limit on the amount that could be in an account.

    The Send & Receive component has a maximum of $50,000; the only prerequisite is the individual’s National Identity Number (NIN), which will be authenticated. Each day, a cumulative balance of three hundred thousand naira is fixed.

    The banks could ask all clients to use e-Naira. Banks can offer onboarding invitation codes to a specific group of customers. Bank-coded customers will be onboarded. 

    The eNaira wallet can be created by dialling *997*. After that, users can check accounts, transfer funds, and buy airtime or data for themselves or their families. Users can verify and update their wallet information, alter and reset their pin, or block the wallet if needed.

    Kuda Bank suffers heavy losses in Nigeria

     

    Nigeria is still not fully banked

    It is necessary for developing communities, where it is used to provide services at far lower costs and without requiring access to the SIM card. 

    Despite the rapid growth of smartphones, the majority of Nigerians mostly use feature phones, making the USSD service an excellent choice. The CBN expects the new route to rapidly advance toward bringing the bulk of Nigeria’s 30% banking services into the formal banking system. 

    As part of its efforts to increase awareness and education about the new digital currency, the Central Bank of Nigeria (CBN) is granting 200 eNGN airtime to the very first 100,000 customers who register using the eNaira USSD feature. 

    Nwani believes that the Clickatell solution effectively places the system for new and collaborative additions, which will help improve the eNaira services. “Our Chat Flow software serves as the foundation for rapid innovation. Digital currencies provide measurable customer benefits, such as lower costs and a simple user experience, and the introduction of new innovative features over time will undoubtedly attract more customers. Without a doubt, the CBN has set the standard for financial inclusion in Africa, and we look forward to being a part of that effort. “

  • The Central Bank Of Nigeria Unveils USSD Code For eNaira Transactions

    The Central Bank Of Nigeria Unveils USSD Code For eNaira Transactions

    The Central Bank of Nigeria (CBN) has released the unstructured supplementary service data (USSD) code for eNaira, the country’s digital currency, to make it easier for more people to use money in Nigeria.

    The USSD transaction code was inaugurated on Thursday by the CBN governor, Godwin Emefiele, at a five-day Northern eNaira fair in Kano.

    Nigeria’s Central Bank Digital Currency, a culmination of years of strategic research into expanding the payments system’s boundaries, would enable Nigerians to transact on the eNaira wallet easily by using the code on any mobile phone.

    Recall that in June, the apex bank announced its intention to introduce a USSD code to improve the adoption of the eNaira in all strata of Nigerian society.

    Represented by the deputy governor of operations, Folashodun Adenisi-Shonubi, Emefiele said the new code — *997# — was created to enhance financial inclusion and avail Nigerians endless possibilities through financial services.

    The head of the CBN said that the eNaira was a strategic move that was made because the bank’s job is to keep money and finances stable.

    “It captured the slogan, “same naira, more possibilities”, and was designed to impact the lives of Nigerians and transform the economy positively,” he said.

    “The eNaira is expected to enhance inclusion, support poverty reduction, enable direct welfare disbursement to citizens, support a resilient payments ecosystem, and improve the availability and usability of central bank money.”

    Emefiele also said that it would help diaspora remittances, lower the cost of processing cash, and make cross-border payments more efficient, among other things.

    According to him, about 45 per cent of Nigerians do not have bank accounts, while 35.9 per cent have no access to formal financial services.

    However, he stated that approximately 81 per cent of Nigerian adults own mobile phones.

    According to the apex bank governor, “In addition, there are 150 million mobile subscribers in Nigeria, according to NCC, June 2022,” he said.

    Therefore, eNaira seeks to leverage the huge opportunity mobile telecommunication presents as a distribution channel for offering digital services to the underserved and unbanked population.

    Accordingly, the eNaira is expected to increase remittances, boost trade, enhance financial inclusion and enable welfare payments to make the government more fluid. 

    Hence, the CBN assured that the eNaira marks a major step forward in the evolution of money and that it is committed to ensuring that the eNaira, like the physical Naira, is accessible by everyone.

    During the event, Abdullahi Ganduje, the governor of Kano, spoke through Sagir Muhammad, a special adviser on cabinet affairs. He thanked the CBN for setting up the eNaira USSD code in his state.

    He promised his administration would make sure businesses could grow and help the state’s social and economic development.

    Ganduje also added that the state government would use the eNaira platform for its empowerment programmes and enjoined Nigerians to use the opportunity to advance their businesses.

    Nigeria’s Central Bank Partner AFF To Deepen eNaira

    African Nations’ Disposition to eNaira

    With Nigeria acclaimed as the “Giant of Africa”, Emefiele said in May that central banks across Africa and other nations are attempting to study Nigeria’s eNaira project.

    He says, “We feel delighted with what we are doing in the area of the Central Bank Digital Currency, CBDC.” “What we are doing in the area of eNaira is attracting the interest of different countries in the world,” Emefiele said during an experience-sharing tour of the CBN’s CBDC (eNaira) by officials of the Bank of Uganda in Abuja.

    He then noted that the CBN had been receiving a lot of enquiries from central banks in Africa and different parts of the world who were trying to understand what the bank was doing.

    As of the first quarter of 2022, eNaira had recorded 840,000 downloads since it was launched on October 25, 2021, and about N4 billion in transactions have been carried out across the 270,000 active wallets, comprising 252,000 consumer wallets and 17,000 merchant wallets.

    Read: Nigeria’s markets regulator announces guidelines for crypto assets

    Understanding the eNaira

    The Central Bank Digital Currency (CBDC), or eNaira, is a legal currency issued by the Central Bank of Nigeria. It is backed by the law. The currency is the digital form of the Naira and is used just the way the cash form is used. 

    eNaira can only be used through the eNaira wallet, which is similar to a bank account and is created similarly. However, the wallet will be a separate account that is not linked to an existing regular bank account.

    Using eNaira for transactions will only be possible between two parties who both possess an eNaira wallet, which enables users to store, send, and receive eNaira.

    In contrast to Bitcoin, which is a crypto-currency that also runs on the blockchain like the CBDC, the eNaira is a digital currency issued by the government, and it will maintain a uniform value like the Naira.

    The eNaira is also safe and allays the fears of possibly losing one’s funds. This is because it is Nigeria’s digital form of cash, and it is a direct liability of the Central Bank of Nigeria, while customer deposits are direct liabilities of the financial institutions.

  • Nigeria’s Central Bank Partner AFF To Deepen eNaira

    Nigeria’s Central Bank Partner AFF To Deepen eNaira

    The Africa Fintech Foundry (AFF) and the Central Bank of Nigeria (CBN) have said they will work together to help 10 startups use eNaira more in the country. Daniel Awe, in charge of AFF, told the News Agency of Nigeria (NAN) about the partnership on Saturday in Lagos.

    The news came while the Semi-Final Pitching of the eNaira Hackathon 2022 was going on.

    eNaira Hackaton

    The AFF boss highlighted the need for increased adoption of the eNaira across the nation, stressing its ability to drive financial inclusion, spur macroeconomic growth, and integrate the Nigerian economy into world-leading economies via innovation and cutting-edge emerging technologies.

    The Central Bank of Nigeria (CBN) released the eNaira, also called the Central Bank Digital Currency (CBDC), on October 25, 2021, with the goal of making all Nigerians’ financial transactions more accessible and faster.

    Read: Fintech StartUp, Wave Receives Investment from IFC

    Awe pointed out that the top 10 startups, innovators, and entrepreneurs are all part of the more than 5,000 startups that signed up for the eNaira Hackathon.

    He said it is viable despite many Nigerians’ concerns regarding the eNaira.

    According to Awe, “eNaira was introduced by CBN in 2021 as a digital currency and many people have asked, what is the usefulness of this eNaira? Many people have also criticised eNaira, saying that they prefer cryptocurrency, but the truth is that eNaira is going to be a successful product,” he said.

    Awe said that AFF and CBN were working together on the hackathon to show different ways to use eNaira. According to Awe, “So the hackathon is a platform where innovators, developers, entrepreneurs, and coders come together to solve problems and create innovative ideas.”

    “When we layer that on eNaira, it means we brought in different players within the ecosystem – developers, coders, innovators, entrepreneurs, to come up with different ideas, different use cases, that they can leverage on eNaira. This is so that the consumers of eNaira will now see the benefit of eNaira; they will have the opportunity to see the problem that eNaira will solve,” he said.

    Awe said the apex bank will just be the platform for fintech startups, and the entrepreneurs will be the ones to create the ecosystem to provide solutions that would benefit the entire financial services space.

    Read: Nigeria’s markets regulator announces guidelines for crypto assets

    He said about 5,000 players within the fintech ecosystem applied for the hackathon. Awe said they were reduced to about 175 teams and 70 for the quarter-final pitching.

    He said that 20 teams would make it to the finals from the semi-finals, and the top 10 would get help to get more people to use eNaira in the country. “Now, these top 10 potential businesses, when they come out of the final of the hackathon, there is a cash prize for them.”

    “I think number one is going to get 5 million eNaira.” Number two is getting 3 million eNaira. Number three, 2 million, and the remaining ten, will get 1 million eNaira. “Afterwards, those top 10 will resume in the AFF accelerator programme, whereby some of them will get some funding to start up their businesses on their ideas,” he said.

    Awe said that CBN and AFF would guide them. He said that by the time they came up with good business with their innovations, employment would be created, and they would increase the adoption of eNaira.

    Awe also disclosed the possibility of wealth created by these people, which would ripple effect on the nation’s economy.

    About eNaira

    The Central Bank of Nigeria has made eNaira, a digital currency, a legal form of payment. It is a central bank digital currency (CBDC) backed by law.

    It is the digital form of the Naira and can be used just like cash. It is a unit of account, a store of value and a medium of exchange. The eNaira can only be accessed through the eNaira wallet. The eNaiara wallet is a digital storage meant to hold the eNaira.

    Nigeria was the first country in Africa to use a digital currency when it introduced the eNaira. However, since its launch, Nigerians have been openly reluctant to embrace the eNaira.

    USSD To Boost eNaira Adoption

    It has been a massive job for the CBN to ensure citizens use the digital currency it created. The AFF hackathon is one of the apex bank’s measures to fast-track eNaira adoption.

    The Central Bank of Nigeria (CBN) said in June 2022 that it wanted to add the Unstructured Supplementary Service Data (USSD) code as a step toward improving the Central Bank Digital Currency (CBDC).

    With USSD, the eNaira will be available to more than 100 million Nigerians, no matter where they are in the country. 

    This will enable low-income earners, particularly those unbanked, to have easy access to eNaira. Most of these Nigerians live in rural areas where banking services are not as readily available, making them a prime target for the eNaira.

    Despite the eNaira’s low acceptance, the CBN believes that the CBDC has a bright future and will play a critical role in financial inclusion.