The e-Naira

The eNaira is the Central Bank of Nigeria-issued digital currency. It is the digital representation of the Nigerian Naira and constitutes a direct liability of the Central Bank of Nigeria (CBN). The eNaira was launched by the President of the Federal Republic of Nigeria on October 25, 2021. The eNaira wallet is a digital storage that holds the eNaira and is required to access, hold and use eNaira by consumers.

How is the enaira different from cryptocurrency

e-Naira

  • It is a legal tender Issued by the monetary authority (CBN)
  • It is a direct liability of the Central Bank of Nigeria
  • The eNaira is a means of payment and has no investment value

Cryptocurrency

  • It is not a legal tender
  • It is privately issued
  • It is not a liability of the Central Bank
  • It can be used as a means of payment and It has investment value

Benefits of the e-Naira

Benefits to Consumers:

  • Faster payments (speed)
  • Increased convenience/access (additional payment option)
  • Lower transaction cost
  • Reduced incidence of transactions failures

Benefits to Merchants and Corporates:

  • Better access to capital due to immediate receipt of payment value
  • Increased convenience/access (additional payment option)
  • Increased efficiency of payment processes and accounting
  • Reduced revenue leakages
  • Lower transaction cost

Benefits to the CBN:

  • Increased financial inclusion
  • Increased effectiveness of monetary policy implementation
  • Reduced cost of currency management
  • Increased economic growth (positive correlation with increased payment efficiency)
  • Optimization of tax revenue collection

Benefits to Financial Institutions:

  • Reduced cost of cash management
  • Increased banking penetration
  • Efficiency through electronic payment processing
  • Innovation opportunities for new business models to be created while improving existing models

*****Kindly visit www.enaira.gov.ng for more information and resources on the eNaira.