Central Bank of Nigeria set to introduce E-Naira in October, 2021

By InstinctBusiness Sep 23, 20210

The Central Bank of Nigeria (CBN) is set to introduce the e-naira, a Central Bank Digital Currency (CBDC) on October 1.

The director of Information Technology, Central Bank of Nigeria (CBN), Rukiya Mohammed disclosed this to Journalists on Wednesday via webinar, on the topic “Digital currency and the prospects of CBDC in Nigeria”, a program organized by the committee of e-Business in industry Heads Nigeria (CeBIH).

Mohammed said that the use of digital payment was rising while cash payment was declining both in Nigeria and globally.

She said that over 85 per cent of Central Banks worldwide were considering digital currency and so CBN was also innovative to cope with global trends.

“CBDC would contribute to macro-economic growth in the country, if people adopt more of the usage of the e-naira, it would enhance more data to formulate macroeconomic policies.

“Also, when more countries have their own digital currencies, it would increase exchange of currency and be able to build cross border trade at a lower cost.

“Even though Nigeria has a good payment system, this would also improve Nigeria’s payments efficiency, “she said.

She said the CBN has partnered with a lot of experts in digital currency technology providers such as MasterCard, came up with the design and would soon publish the design.

“CBN would focus on low amount payments at the introductory stage, instant settlement with low cost.

“CBDC would be legal tender with one e-naira equivalent to one naira which shows fundamental differences between CBDC and cryptocurrencies,” she said.

Also speaking, Dr Adesola Adedutan, Managing Director, First Bank Nigeria, said that the Central Bank of Nigeria CBDC was a game-changer that would provide an alternative payment system and would radically transform the payment landscape.

Adedutan, who was represented by the Bank’s deputy chief executive, Mr. Francis Soba, said CBDC provides a platform for the government to leverage blockchain technology to maintain a centralized and institutional role over the currency.

‘’It should be noted that there are significant differences between CBDCs and cryptocurrencies,” he said.