President Muhammadu Buhari has said that the adoption of new digital currency by the Central Bank of Nigeria (CBN) will increase Nigeria’s GDP by $29 billion over the next 10 years.
Launching Nigeria’s digital currency, eNaira on Monday in Abuja, President Buhari said: “We have become the first country in Africa and one of the first in the world to introduce a digital currency to our citizens.”
Buhari noted that Nigeria has become the first country in Africa and one of the first few globally to introduce digital currency, which is one of the most advanced payment systems in the world, to its citizens after countries like China, Bahamas and Cambodia.
According to him, the absence of a swift and effective solution to these requirements, as well as fears that Central Banks’ actions sometimes lead to hyperinflation created the space for non-government entities to establish new forms of “private currencies” that seemed to have gained popularity and acceptance across the world, including here in Nigeria.
“In response to these developments, an overwhelming majority of Central Banks across the world have started to consider issuing digital currencies in order to cater for businesses and households seeking faster, safer, easier and cheaper means of payments.
“A handful of countries including China, Bahamas, and Cambodia have already issued their own Central Bank Digital Currencies (or CBDCs). A 2021 survey of Central Banks around the world by the Bank for International Settlements (BIS) found that almost 90 percent are actively researching the potential for CBDCs, 60 percent were experimenting with the technology and 14 percent were deploying pilot projects.
“Needless to add, close monitoring and close supervision will be necessary in the early stages if implementation to study the effect of eNaira on the economy as a whole.
“It is on the basis of this that the Central Bank of Nigeria (CBN) sought and received my approval to explore issuing Nigeria’s own Central Bank Digital Currency, named the eNaira,” he said.
The launching at the State House in Abuja was witnessed by Vice President Yemi Osinbajo, governor of the CBN, Mr. Godwin Emefiele and other dignitaries.
According to a statement on the eNaira website, the digital currency has two applications – eNaira speed wallet and eNaira merchant wallet, which were launched on the Google Playstore and Apple Store on Monday in Abuja.
It explained that the overall functions of the currency and its value to Nigeria’s economy and that “eNaira is a Central Bank of Nigeria-issued digital currency that provides a unique form of money denominated in Naira”.
It added that “eNaira serves as both a medium of exchange and a store of value, offering better payment prospects in retail transactions when compared to cash payments.”
Additionally, the new payment system, which has taken four years to crystallize, will drive financial inclusion, serve as a backbone for electronic payment in Nigeria and also enable the movement of more people from the informal to the formal sector, hence scaling up the tax base of the country.
GIK/APA