There is no doubt that the naira redesign policy of the Central Bank of Nigeria (CBN), which led to the unintended consequences of naira scarcity, was not meant to punish Nigerians. It seeks to mop up excess cash in the system, reduce inflation, reduce crime and advance the movement towards a complete cashless economy.
The apex bank has ensured that there are viable alternatives before introducing the policy. There is internet banking through the app, USSD for money transfers and other payments, and e-Naira was introduced recently as a store of value similar to physical cash.
When President Muhammadu Buhari launched the Central Bank Digital Currency (CBDC) in October 2021, making Nigeria the first on the continent to implement it, he said it was a new dawn for the monetary economy.
In his remarks at the launch, CBN Governor Godwin Emefiele stressed that e-Naira will not only revolutionize transactions but also provide citizens with a more efficient, cheaper and easier way to do business.
Since its announcement, according to Economic Secrets, millions of Nigerians using the platform have testified to its enthusiasm. He has seen how e-Naira can send, receive money and pay bills smoothly, praising the idea that it has eliminated middlemen.
The platform is cheaper because no financial institution has to pay any fees. The absence of banks also eliminates the possibility that depositors will lose money if a bank crashes. This is because it is the CBN that keeps the money in e-Naira and that is why it will not crash.
Indeed, the non-experience of problems associated with conventional internet banking has attracted many people to e-Naira. This is not surprising; no one likes not being frustrated by poor network service, or the stress of going to the bank to complain about credit or debit unsuccessfully.
Meanwhile, the government has encouraged Nigerian technologists to innovate. Some are currently in various stages of incubation. At an event last February in Lagos, the CBN launched a USSD channel to boost the use of e-Naira amid paper money shortage.
Chief Executive Officer, Bullnet Bulletin and Inquiries Networking Services, Bayo Akintoye noted that the use of the code will ease the cash crunch as the country transitions from a cash-based economy to a cashless one.
“CBN has partnered with Chamsmobile Limited, a licensed operator, to address the challenges faced by the unbanked and underserved by developing USSD (*997*50#). The e-Naira wallet can be funded through recharge cards GSM, bank account card, web portal or electronic payment with authorized agents.
“Users can transfer from one wallet to another by entering the recipient’s phone number. The service makes it possible to cash out by sending e-Naira from the wallet to an ATM and withdraw the same without the need for a bank account or card. Users can also send e-Naira to bank account for savings or transactions,” he said.
The Project Coordinator, e-Naira Project Giant Team, Otaru Abdulkadir explained that the currency was introduced to increase financial inclusion in countries, increase cross-border transactions, diaspora remittances and complement future payment infrastructure.
“Transactions can be done in many ways. You can scan to pay; you can use your wallet ID when you’re onboard and have a 10-digit e-Naira number. And of course, you can use the power of USSD. It’s available to everyone with a mobile phone , not necessarily a smartphone or any data phone,” he said.
It is clear that the currency has unlimited opportunities for many good things. And with the way CBN is working around the clock to expand e-Naira and encourage Nigerians to come up with different initiatives, the coming months will be interesting for Nigerians already on the platform.
Abdul Rahman Abdul Rahman
editor@economicconfidential.com