Nigeria hopes to add millions of new eNaira users as it expands capabilities and targets the unbanked

By: Dickson Arinze

Nigeria hopes to add millions of new eNaira users as it expands capabilities and targets the unbanked

August 19, 2022 6:27 AM

Godwin Emefiele, the governor of the Nigerian Central Bank, informed participants at the eNaira Hackathon that the CBDC will become more appealing and accessible as a result of technological advancements.

 

The governor of the Nigerian Central Bank, said that the eNaira, the nation's central bank digital currency (CBDC), would begin the second phase of its expansion with new technologies to broaden its user base. He was addressing on Thursday at the 2022 eNaira Hackathon in Abuja. The governor of the Nigerian Central Bank, said that the eNaira, the nation's central bank digital currency (CBDC), would begin the second phase of its expansion with new technologies to broaden its user base. He was addressing on Thursday at the 2022 eNaira Hackathon in Abuja. Africa's first CBDC the eNaira, was launched in October last year.

 

The CBN governor stated that the eNaira is a process rather than a singular occurrence, adding:

 

"We are currently living in a digital economy and universe where the use of cash will be reduced to almost zero. Accepting this fact is the only option available."

 

The governor of the Nigerian Central Bank, Godwin Emefiele, said that the second phase of the eNaira's expansion would start using new technologies to increase its user base. The eNaira is the country's central bank digital currency (CBDC). On Thursday, he spoke at the Abuja 2022 eNaira Hackathon. Launched in October 2021, the eNaira is Africa's first CBDC.

 

The second phase of the project has begun, and it intends to increase financial inclusion by enlisting underserved and unbanked customers, with a target of about 8 million active users, according to Emefiele. The CBDC has gotten over 840,000 downloads and has about 270,000 active wallets, including 252,000 consumer wallets. At the official exchange rate, there have been around 200,000 transactions worth a total of 4 billion naira, or about $9.5 million.

 

Emefiele stated that the central bank will implement Unstructured Supplementary Service Data (USSD) "by next week" to enable customers to create eNaira wallets simply dialing a four-digit code on their mobile phones, regardless of whether they have bank accounts or not. After that, customers with bank accounts will be able to transfer money instantly between bank accounts using the Nigeria Inter-Bank Settlement System (NIPS). There are currently apps available for the eNaira that let users pay for utilities and a variety of other services.

 

According to Daniel Awe, CEO of the Africa Fintech Foundry, the eNaira Hackathon platform will also improve the eNaira platform. The hackathon, which attracted 4,667 startup submissions, was jointly sponsored by the central bank and that organization. Ten of them received rewards for between one and five million naira.

 

Despite the country's "implicit prohibition" on cryptocurrencies, the naira and the eNaira are both subject to fierce competition from cryptocurrencies because of the instability of the fiat currency.