CBN: eNaira Launched to Deepen Payment System Not Competition with Banks

·      UniAbuja declares support for digital currency adoption

James Emejo in Abuja

The Central Bank of Nigeria (CBN) yesterday clarified that the introduction of the Central Bank Digital Currency (CBDC) also known as eNaira by the Central Bank of Nigeria (CBN) was aimed at deepening the country’s payment system.

There had been misconceptions that the eNaira was launched to either replace or compete with existing banking brands.  

However, speaking during a sensitisation visit to the University of Abuja to further create awareness and boost adoption on the digital payment option on campus, CBN Deputy Director and Team Lead on eNaira Adoption, Mr. Joseph Angaye, said the digital innovation was not meant to replace the existing payment systems.

Rather, he said the eNaira would deepen the payment options, and address existing challenges inherent in the traditional payment architecture.

He stated that while the digital currency is not a competitor to the banking industry, it serves to boost the federal government’s financial inclusion drive and reduce the number of interfaces required for completion of payment transactions.

Addressing the university’s top management staff, led by the Deputy Vice-Chancelor, Academics, Prof. Aisha Sani Maikudi, the CBN deputy director added that eNaira adoption would reduce network congestion and reduce leakages in revenue collection.

He stressed that while the eNaira remained the same physical naira, the former is enhanced with greater possibilities including programming.

Angaye also explained that the visit the ivory tower was in continuation of the apex bank’s sensitization campaign to showcase the value proposition of the digital currency to the university – as well as onboarding the staff and students to the payment platform.

He said the awareness exercise had been carried in the six geo-political zones to ensure that eNaira is adopted as an alternative payment option in financial transactions as well as revenue generation, and reduce stress relating to issues of reconciliation of accounts.

He further noted that the digital currency remained a new concept with Nigeria being one of the earliest adopters globally – in fact, the second nation to be adopted the innovation.

He maintained that the innovation is not profit-oriented as the bank seeks to achieve seamless payment services.

He said the central bank cannot continue to wait on market forces to provide the services needed to deepen financial inclusion, adding that with eNaira, payment can be made whether there is network availability or otherwise.

He said the eNaira seeks to complement existing payment options with greater flexibility and lots of value addition which could not be derived from the paper currency.

However, in her response following the bank’s presentation, Maikudi, commended the innovation, assuring that the university was prepared to collaborate with the CBN and to mobilise staff and students to adopt the digital currency as a payment alternative.

She said the university already has a robust infrastructure that would be of immense benefit to the eNaira drive adding the banking and finance department will work with the bank on the project