Unic Press UK: Nigerian president, Muhammadu Buhari, has launched eNaira, a digital form of the Fiat currency (Naira), which is being issued by the Central Bank of Nigeria (CBN) in line with Section 19 of the CBN Act.
eNaira is the electronic Naira issued by the Central Bank of Nigeria as a legal tender. It therefore creates a direct liability on the CBN in light of the fact that this digital currency is a legal tender that forms part of the currency-in-circulation. The eNaira complements cash and comes with a framework that is “less costly, more efficient, generally acceptable, safe and trusted means of payment and [a] store of value”, the CBN says.
The eNaira is established to improve monetary policy effectiveness, enhance government’s capacity to deploy targeted social interventions, provide alternative less costly channel for collection of government revenue and boost remittances through formal channels, the CBN added in a circular – FPR/DIR/PUB/CIR/001/023 – to all stakeholders issued 25 October 2021.
Further details provided by the CBN via its circular – FPR/DIR/PUB/CIR/001/023 – includes the participants and their various roles.
Central Bank of Nigeria (CBN)
The CBN shall exclusively perform the following roles:
- Mint, issue, distribute, redeem and destroy the eNaira;
- Determine the technical, regulatory and operational standards for the eNaira;
- Manage unresolved eNaira issues and complaints escalated from the FIs and disputes arising between FIs;
- Monitor compliance with applicable regulations; and
- Issue directives and review Guidelines on eNaira periodically as may be
Financial Institutions (FIs)
The Financial Institutions are intermediaries between the CBN and customers. Their roles within the eNaira ecosystem shall include:
- Facilitating eNaira speed wallet onboarding for bank customers (merchants and individuals) including sensitizing them on the need to familiarize themselves with details of their BVN particulars, especially email address. This is a major requirement for the self-service enrollment process into the eNaira Speed
- Integrating the eNaira speed wallet feature into their electronic banking channels;
- Requesting eNaira from CBN for self and on behalf of its customers;
- Managing eNaira across its branches;
- Developing and/or updating reports and internal frameworks to ensure compliance with KYC and AML/CFT requirements;
- Receiving and resolving customers’ complaints on eNaira (including prompt update of customers’ BVN particulars in NIBSS); and
- Ensuring that eNaira enquiries and complaints are included in the periodic reports to CBN.
Merchants’ roles include:
- Providing customers with alternative channels for making transactions using eNaira;
- Providing cashback services for customers;
- Publicising the option of eNaira payment for transactions at merchant locations; and
- Protecting their eNaira speed wallet credentials against fraudulent
Ministries, Departments and Agencies (MDAs)
- Receive revenue in eNaira; and
- Make payments in
Consumers are the end users of the eNaira and their roles are:
- Creating eNaira speed wallets and funding it;
- Utilising eNaira as an alternative payment option for legitimate transactions;
- Protecting their eNaira speed wallet access credentials; and
- Notifying financial institutions in the event of fraud/complaints/disputes.