eNaira: Changing the Narrative of Financial Transactions in Nigeria
By Abbas Badmus,
TECHDIGEST – The idea of eNaira comes from the ever-expanding developments in digitalization and the need for a secured means of effecting transactions across borders.
eNaira is a Central bank digital currency issued and regulated by the Central Bank of Nigeria. As a compliment to the existing forms of CBN-issued legal tender currency, the eNaira serves as both a store of value and medium of exchange, offering efficiency in Nigeria’s payment ecosystem.
The eNaira was launched and activated on 25 October, 2021 by President Muhammad Buhari, under the slogan: “Same Naira, More Possibilities”.
The introduction of eNaira by the CBN immediately put Nigeria in the global spotlight as the first African country to launch Central Bank digital currency, (CBDC).
If fully embraced, there are several benefits attached to it for Nigerians and the business community thereby eradicating many issues surrounding cash transactions.
Some of the benefits include:
speedy delivery, safe, simple trading and transactional opportunities to customers and end-users.
More specifically, the benefits to the merchants and business owners include reduced cash handling cost, elimination of failed transactions, instant settlement, increased speed of transactions, improvement in records keeping and elimination of Challenges associated with giving change to customers, amongst others.
Recently, the deputy governor of Central Bank of Nigeria CBN, Economy policy, Dr. Kingsley Obiora made it known in the just-concluded Abuja eNaira Merchants Mega Events that took place at Abuja Chambers of Commerce and industry that there is reward scheme for merchants and business owners using eNaira platform.
“I am pleased to inform you that the central bank of Nigeria approved a reward scheme for merchants and other users of the eNaira.
“This reward scheme includes providing merchants with the required scheme includes providing merchants with the required promotional (marketing) materials, subsidizing the current merchant service charge by 50% and activation of a nationwide sensitization which early business adopters of eNaira can leverage on to market its wider adoption “.
It is also important to note that eNaira platform can now facilitate payments using QR codes, USSD, Wallet ID and eNaira wallet tag. Value added services on the platform includes branch or sub wallets, employee management as well as interoperability with other enterprise applications. These services are provided in a secured environment as the eNaira platform was built using very secure security protocol.
Ample opportunities for increasing business income abound through the adoption of the eNaira. For instance, the availability of eNaira payment option on e-commerce merchant platform such as Remita is expected to complement the existing digital payment system, translating to about 50% increments in e-commerce transactions at a lower cost.
Going by the innovations and advantages of the eNaira, and the greater understanding that the relaunch is expected to build, it is most likely that the eNaira will, in no distance time, be embraced to further enhance financial inclusion.
Abbas Badmus is with TechDigest Abuja