The Central Bank of Nigeria (CBN) has announced plans to expand the use of its digital currency, eNaira, to facilitate payments into government accounts and streamline transactions for Ministries, Departments, and Agencies (MDAs).
This initiative will enable MDAs to manage vendor and beneficiary payments using the eNaira, marking a significant step toward integrating digital currency into Nigeria’s public sector financial operations.
These developments are outlined in the CBN’s recently published Monetary, Credit, Foreign Trade, and Exchange Policy Guidelines for the fiscal years 2024-2025.
The document highlights the CBN’s ongoing efforts to boost eNaira adoption across both public and private sectors, reflecting the country’s commitment to advancing its digital economy.
Beyond facilitating payments, the guidelines reveal several new enhancements for the eNaira. One of the key initiatives includes the launch of eNaira version 2.0, which will significantly expand the role of deposit money banks in promoting and utilizing the digital currency.
This upgrade will strengthen the infrastructure surrounding eNaira transactions, making it more accessible and versatile for users, the statement reads:
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“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.”
“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.”
The CBN also plans to collaborate with both federal and state governments to drive widespread adoption of the eNaira, ensuring that the digital currency becomes a fundamental part of governmental operations.
The introduction of new features, such as offline functionality and programmable money, is also in the works. These features are designed to further integrate the eNaira into government activities, allowing for seamless transactions even in areas with limited internet connectivity.
With these improvements, the CBN aims to position the eNaira as a central tool in Nigeria’s digital transformation, enhancing transparency and efficiency in public sector payments while fostering broader adoption within the private sector. The ongoing efforts underscore Nigeria’s ambition to lead in digital currency innovation on the African continent.