CBN Set to Revive eNaira, Expand Digital Financial Services

The Central Bank of Nigeria (CBN) is working on reviving the eNaira project as it reaffirms its commitment to building trust and expanding digital financial services access in the country.

Nigeria’s Central Bank Digital Currency, eNaira, was launched in October 2021 as one of the country’s initiatives to drive financial inclusion, but its acceptance level remained very low. The apex bank attributed the low acceptance and use to poor awareness on its operations, reaffirming commitment to reviving the payment infrastructure.

Speaking yesterday during the CBN Fair held in Lagos, with the theme: “Driving Alternative Payment Channels as Tools for Financial Inclusion, Growth and Accelerated Economic Development” its Branch Controller, Lagos, Sunday Daibo, said the apex bank is taking steps to ensure more people are brought into the digital payment network.

He said: “In a world where technology is reshaping economies and redefining how people interact with financial services, alternate financial services have emerged not as an option, but as a necessity. They are the bridges connecting the underserved populations to the formal financial system,” he said.

“ Today’s gathering brings together policy makers, financial institutions, FinTech innovators, merchants and the public, all stakeholders in a single mission to make financial access to the person and to ensure that every Nigerian, regardless of location or status, can participate in and benefit from our nation’s economic project progress.

“Over the years, we have seen our mobile money platforms, agency banking networks, USSD services, internet banking contracts, contactless payments, central bank digital currency and, most recently, open banking, have broken the barriers of distance costs and complexity.”

These channels are more than just tools for transaction. They are instruments for empowerment,” he said.

He described the programme as a celebration of Nigeria’s collective commitment to economic stability, financial inclusion and national development.

Also speaking, CBN Acting Director, Corporate Communications Department, Mrs. Hakama Sidi Ali, said the management of the apex bank, under the leadership of Olayemi Cardoso, is committed to stimulating productivity and financial inclusiveness as well as delivering on its core mandate of monetary and price stability.

This has resulted in significant increase of inflow in foreign investments, positive trade balances and quantum leap in financial inclusion rate in recent times.

She said: “Over the past 22 months, the CBN has, among others, rolled out exchange rate unification policy to minimize arbitrage opportunities and reduce volatility in the foreign exchange market and cleared over $7 billion of verified backlog of FX forwards.”

She explained that the launch of Nigeria Foreign Exchange (FX) Code has improved governance in the forex market management, adding that the ongoing recapitalisation of banks will strengthen the resilience and global competitiveness of the banking sector, positioning it to support the $1 trillion dollar economy.

Ali said the core objective of this engagement, therefore, is to sensitize members of the public on how the bank’s policies and innovations can enhance their lives and livelihood and contribute to the growth and development of the Nigerian economy.

She explained that as a means of protecting banks’ customers and ensuring that they are not short-changed, the CBN launched the Unified Complaints Tracking System (UCTS), aimed at streamlining and improving the management of consumer complaints against financial institutions. The system, alongside a USSD code (*959#) for verifying licensed institutions, enhances transparency and consumer protection in the Nigerian financial sector.

“The core objective of this engagement, therefore, is to sensitize members of the public on how the Bank’s policies and innovations can enhance their lives and livelihood and contribute to the growth and development of the Nigerian economy,” she said.

She said the CBN will continue to ensure availability of clean currency. “We, however, urge you to see the Naira as our critical symbol of national identity. Respect and keep it clean. Do not spray, hawk, mutilate or counterfeit the Naira,” she advised.

Other stakeholders insisted that at the heart of the CBN strategy is its commitment to maintaining economic stability.

“Administration prioritized an inflation targeting framework, which has been pivotal in controlling inflation and stabilizing the naira through careful adjustments in the monetary policy, rate and other instruments. The CBN has kept the economy on a steady course despite global economic headwinds,” they said.

“This year has been marked by innovative reforms and realignments, significant upgrades were made to digital platforms, automating financial processes and implementing stringent cyber security measures to protect assets and data,” they said.

The participants concerns around banking system stability, customer services and complaints were addressed by CBN team from the Other Financial Institutions Department, Payments System Policy Department, Consumer Protection and Financial Inclusion Department, Currency Operations and Branch Management Department, and Financial Markets Department.