CEM REPORT, FINANCE | More Nigerians are embracing the Central Bank of Nigeria (CBN) E-naira as the currency circulation has risen to N401.82 million.
This is as transaction volume rose from over N4 billion to N5 billion.
According to the Director of Information and Technology at the CBN, Rakiya Mohammed, the e-naira reduces the cost of cash management while noting that Nigerians spend 100s of millions to manage cash payments and enable eco-friendly usage.
Speaking during the 2nd Edition of the Africa Cashless Payment Conference, she stated that transaction using the e-naira attracts no charges for now adding that the CBN prides the e-naira on being peer-to-peer.
She further explained that the e-naira is the same naira we have but in electronic form, is legal tender in Nigeria, and carries the same exact value as the current naira.
“It is a rep lica. Basically, they are exactly the same, the digital equivalent of current cash and parity exchange 1:1 with cash.
“Both banked and unbanked can use it and can be done through USSD *997#. We have integrated it with telecoms and NIBBS instant payments plus integration with money transfer operations so that you can use e-naira for cross border.”
While citing that Nigeria is the first to launch a central bank digital currency with an operational CBDC, she noted that currently, 401.82 million e-naira is in circulation, with the volume of transactions “over N4 billion.”
The CBN IT Director expressed optimism that the e-naira will bring about a reduction in the cost of cash, an increase in revenue, and direct disbursement to citizens as the e-naira is programmable so that it can only be used for the reason money is distributed for specific events and integrating with the Pan African Exchange system (PAPPS).
Recall that the CBN Governor, Godwin Emefiele said, “Since its inauguration, the e-naira had reached 840,000 downloads, with about 270,000 active wallets comprising more than 252,000 consumer wallets and 17,000 merchant wallets.
In addition, the volume and value of transactions have been remarkable, reaching above 200,000 and N4 billion Naira respectively.
“The e-naira will make a significant positive difference to Nigeria and Nigerians. It was also developed to provide Nigerians with a cheap, safe, and trusted means of payment. It is unlike offline payment channels like agent networks, USSD, wearables, cards, and near-field communication technology.