The Central Bank of Nigeria (CBN) has made a presentation to banks and financial institutions (FI) ahead of its planned rollout of the electronic naira (eNaira) on October 1st.
Information from the presentation seen by MoneyCentral shows that the CBN is currently on phase 3 of its 4 phase roadmap for launching the eNaira.
The eNaira will operate on an account-based wallet, have transaction limit for customers, a tiered Anti-Money Laundering, Know Your Customer AML/KYC approach (using NIN, BVN as unique identifiers), and will be a Non-Interest Bearing Central Bank Digital Currency (CBDC).
The pilot launch of the eNaira is expected to be unveiled in Lagos, Port Harcourt, Abuja, Kano and a few other major cities by October 1st.
The presentation notes that eNaira is being designed such that people can easily fund their wallets using their existing accounts with the Banks. The eNaira platform will also integrate with all banks via NIBSS for the October Pilot go live.
Banks are expected to market and promote the adoption of eNaira as a digital version of cash to existing and potential customers in support of financial inclusion objective of the CBN.
The eNaira and the system supporting it, will be more efficient – faster, cheaper and more resilient – than the current systems in use.
One major area the eNaira would have a transformational effect would be in the form of a cheaper payments systems which would accelerate adoption of bank accounts and digital transactions in Nigeria, with a potentially transformative impact on economic growth.
There would be zero transaction fees for individuals on wallet to merchant transactions, as well as zero fees on peer-to-peer transactions on the eNaira platform, according to the presentation seen by MoneyCentral.
For Merchants there will be zero Merchant service charge on peer-to-business transactions on the eNaira platform.
The eNaira is also likely to help with the CBNs financial inclusion drive as well as poverty reduction.
CBDCs offer the option of ‘coding up’ money with conditions on how it’s used.
So governments could make payments, for example, that people can only spend on food.
In times of crisis, this could enable highly targeted financial support – or be used more systematically to ensure everyone in society has access to a basic standard of living.