How Nigeria’s digital currency, eNaira, will work

WHAT IS ENAIRA

eNaira is issued by CBN as a legal tender and it is also the digital form of the naira and will just be like cash.

WHAT ARE THE BENEFITS?

The digital currency is for everyone: individuals, households, businesses, non-governmental organisations (NGOs), religious institutions, and governments at all levels, as it enables customers to move money from their bank account to their eNaira wallet with ease.

Some of the benefits include diaspora payments, receiving financial support/intervention funds through the digital wallet; increasing customer base for financial institutions and businesses

The eNaira will ensure transparency in taxation systems for governments; facilitate the instant cross-border foreign exchange to boost economic growth, and minimize fraudulent activities such as money laundering, and illegal money deals because of the trackable unique ID of each eNaira.

WHAT IS ENAIRA WALLET?

This is the digital storage that holds the eNaira. It is held and managed on a distributed ledger and it is required to access, hold and use eNaira.

DIFFERENCE BETWEEN DIGITAL MONEY AND PHYSICAL MONEY

The eNaira is the digital form of cash and is a direct liability on CBN, while the customer deposits are direct liabilities of the financial institutions.

HOW TO ACCESS ENAIRA?

To access the digital currency, you will have to download the eNaira app either on the Google play store or the App store.

HOW CAN YOU GET STARTED?

Individuals

1. Download the eNaira app;

2. Enter the invitation code received from the bank;

3. Enter minimum identification details (i.e., NIN, BVN, or know your customer (KYC)/anti-money laundering (AML) information, depending on the customer tier you are);

4. Enter other identification details such as name, place, date of birth, phone number, passport photograph, email and password);

5. Minimum ID is validated;

6. You receive a notificati

How eNaira will affect banking sector -Economists

In any case, that the CBN is testing eNaira through pilot projects is a demonstration of a cautious approach. All said, the launch of the CBN’s digital currency is an important milestone which holds a lot of promise for the financial system in Nigeria and the banking sector in particular,’’ he said.

The Director, Centre for Economic Policy Analysis and Research, Prof. Ndubisi Nwokoma, said that the currency which is novel would be faced with distrust even as implementation progresses.

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“The launch of the eNaira is a new path being taken by the CBN to follow in the global practice of enhancing the payment system through the use of digital currency.

“It is novel, even in advanced societies, hiccups may be encountered as implementation progresses. Even currently, many global companies have not fully embraced the use of crypto-currencies in payments.

“Skepticism may be the order of the day, at the onset, except for those already familiar with digital currencies,” he said.

A Professor of Economics at the Olabisi Onabanjo University, Ago-Iwoye, Ogun State, Sheriffdeen Tella, said the eNaira is a worthy innovation by the CBN, hoping that the banks would keep the charges low so as not to frustrate the project.

“eNaira is a worthy innovation by the CBN, though some other countries are already into it. It is expected to strengthen the cashless policy.

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