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The Central Bank of Nigeria (CBN) has announced plans to extend the use of its digital currency, the eNaira, to facilitate payments into government accounts. This initiative will also enable Ministries, Departments, and Agencies (MDAs) to initiate vendor and beneficiary payments using eNaira wallets.
This expansion is highlighted in the CBN’s recently released Monetary, Credit, Foreign Trade, and Exchange Policy Guidelines for Fiscal Years 2024-2025, where the apex bank emphasized its continued efforts to drive the adoption of the eNaira in both the public and private sectors.
According to the document, “The CBN shall continue to work towards enabling the use of eNaira Wallet/Channels by payers to deposit funds into government accounts at the CBN, and allow MDAs to initiate vendor/beneficiary payments from their respective eNaira wallets.”
The CBN also outlined other improvements for the eNaira, including partnerships with federal and state governments to encourage broader adoption, alongside the introduction of eNaira Version 2.0. This new version will focus on expanding the role of deposit money banks in promoting the digital currency’s use.
In its guidelines, the CBN noted that, “The eNaira offers several advantages, such as faster and cheaper payments, increased financial inclusion, and a reduction in fraud. The CBN will maintain its commitment to enhancing the eNaira and promoting its use. This includes the rollout of eNaira version 2.0, which will prioritize wholesale Central Bank Digital Currency (CBDC) to expand deposit money banks’ involvement, offline functionality, programmable money, and greater collaboration with federal and state governments.”
With these developments, the CBN aims to position the eNaira as a pivotal tool in improving financial operations across Nigeria’s public sector, further advancing digital payment systems and boosting economic efficiency.
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