CBN to Expand eNaira Usage for Govt Payments

The Central Bank of Nigeria (CBN) has unveiled plans to expand the use of its digital currency, the eNaira, to facilitate payments into government accounts.

According to the CBN’s latest policy guidelines, the bank aims to enable payers to use the eNaira wallet to make payments into government accounts, while also allowing Ministries, Departments, and Agencies (MDAs) to initiate vendor and beneficiary payments from their respective eNaira wallets.

This move is part of the CBN’s efforts to boost the adoption of the eNaira in both the public and private sectors.

CBN explained that the guidelines also outlined plans to enhance the eNaira’s functionality, including collaboration with federal and state governments to drive adoption, as well as the deployment of eNaira version 2.0, which will expand the role of deposit money banks in its usage.

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Other planned features include offline functionality and programmable money, which will further integrate the eNaira into both online and offline government activities.

It further revealed the benefits of the eNaira, including faster and cheaper payments, increased financial inclusion, and reduced fraud.

The bank has committed to sustaining efforts to enhance and drive the adoption of the eNaira, including the deployment of eNaira version 2.0 and increased collaboration with governments.

It said:
“The CBN issues and regulates the eNaira, a digital form of the fiat currency. The eNaira offers several benefits which includes faster and cheaper payments, increased financial inclusion, and reduced fraud, amongst others.

“The CBN shall sustain efforts in enhancing the eNaira and driving its adoption. This includes the deployment of eNaira version 2.0 with focus on wholesale Central Bank Digital Currency (CBDC) to increase the participation of deposit money banks and empower them to drive its adoption; implementation of offline functionality, programmable money; and more collaboration with Federal and State Governments to increase its adoption.”