The Central Bank of Nigeria’s (CBN’s) strategy of an efficient payment system through the introduction and implementation of the e-Naira is a laudable effort that is contributing to the success of our digital economy.
According to the Buhari Media Organisation (BMO), the Central Bank Digital Currency (CBDC), also known as e-Naira, is one of the Federal Government’s solutions to foreign exchange challenges that surprised the global economic leaders.
In a statement signed by its Chairman Niyi Akinsiju and Secretary Cassidy Madueke, BMO noted that while many countries are still considering the importance of a sovereign currency, we’ve gone ahead to pioneer it. “What we have now is a multi-platform transactional economy; and not just that, we are now running a strong electronic platform economy, digital transactional economy and a crypto-based digital currency”.
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The e-Naira which was launched in October 2021, has shown to have prospects for the Nigerian economy. BMO, quoting the CBN governor Godwin Emefiele, noted that the digital currency “underlying blockchain could increase Nigeria’s Gross Domestic Product (GDP) by $29 billion, in 10 years.
“Alongside digital innovations, digital currencies could foster economic growth through better economic activities, increase remittances, improve financial inclusion and make monetary policy more effective”.
The group added that “the e-Naira, being the first central bank digital currency in Africa, has attracted much attention and countries across Africa are coming to Nigeria to understudy its technicalities.
“Most countries in the high G7 cadre, the IMF and the World Bank, were not expecting this from us. And from Nigeria comes the digital currency that people are now buying into: we have more banks facilitating and more traders across the world engaging in it.
“The beauty of this is that it is not just a domestic transactional platform, it also avails international transaction, one can transact from any location with a naira account at an official exchange rate. As CBDC gets bigger, emphasis will gradually move away form hard currency (dollar) to digital currency”.
BMO highlighted that aside from making life easier for the average Nigerian, “e-Naira has made transactions simpler than what it used to be and also generated tax from merchants registered on the app. With more registrations and participation we expect more revenue to be generated.