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Despite recent changes in leadership, the Central Bank of Nigeria (CBN) remains steadfast in its commitment to the central bank digital currency (CBDC) project, as it continues to push forward with new developments.
According to a report from The Sun, the CBN has recently upgraded its CBDC mobile app by integrating Near Field Communication (NFC) technology. With this enhancement, mobile devices and payment terminals can interact in close proximity, facilitating seamless and contactless eNaira payments.
While previous versions of the CBDC app featured QR codes, the CBN believes that the incorporation of NFC technology will significantly boost adoption rates. Joseph Angaye, the deputy director of the CBN’s risk management department, revealed that the central bank is dedicated to leveraging innovative technology to enhance user experience.
Embracing cutting-edge technology, Angaye also disclosed that the eNaira CBDC will come with programmability features. This programmability will enable the restriction of CBDC payments solely to designated government programs, reducing the risk of fraud.
Elaborating further, Angaye emphasized that the CBDC’s programmability empowers targeted fund allocation, especially to support farmers with specific purposes like tool acquisition. By doing so, funds transferred into their eNaira wallets become non-divertible for unrelated purposes, ensuring strict adherence to the intended use.
Angaye highlighted several benefits of CBDCs for retail users in Nigeria, including mitigating settlement risks and enabling rapid transaction processing. The eNaira aims to address financial inclusion challenges, and Nigeria’s pioneering role in adopting CBDCs provides valuable insights for various economic players and entities to learn from the country’s experience.
Nigeria launched its eNaira in 2021, joining a select group of countries offering a CBDC. However, adoption rates have fallen below expectations, leading the central bank to explore various options to drive usage.
To promote eNaira usage, the central bank introduced use cases in the transport sector and included USSD functionality in the offering. Despite challenges, the CBN remains determined to propel the growth and acceptance of the eNaira CBDC.
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