President Muhammadu Buhari has said that the eNaira, aside from the global trend to create digital currencies, has Nigeria-specific benefits that cut across different sectors and concerns of the economy.
The president stated while unveiling the eNaira platform in Abuja on Monday.
He said the central bank digital currency (CBDC) can foster economic growth through better economic activities, increase remittances, improve financial inclusion and make monetary policy more effective.
“Let me note that aside from the global trend to create Digital Currencies, we believe that there are Nigeria-specific benefits that cut across different sectors of and concerns of the economy.
“The use of CBDCs can help move many more people and businesses from the informal into the formal sector, thereby increasing the tax base of the country,” he said.
Assuring Nigerians of the safety and scalability of the CBDC system, Buhari said the journey to create a digital currency for Nigeria began sometime in 2017.
“Work intensified over the past several months with several brainstorming exercises, deployment of technical partners and advisers, collaboration with the Ministries of Communication and Digital Economy and its sister agencies like the Nigerian Communications Commission (NCC), integration of banking software across the country and painstaking tests to ensure the robustness, safety and scalability of the CBDC System,” Buhari said.
For his part, the CBH governor, Mr. Godwin Emefiele said the CBCD is first in Africa and one of the earliest around the world.
“Mr. President, today you make history, yet again, with the launch of the eNaira – the first in Africa and one of the earliest around the world.
“Mr. President, as you make groundbreaking reforms, there has been continuing debate on the true value of the Naira.
“Rather than worry today on the direction of the exchange rate, let us take a step back and analyse how we got here in the first place.”
Earlier, the CBN had, in its framework entitled, ‘eNaira circular and guidelines’ stated that all transactions on newly-launched eNaira platform would be free for 90 days
However, it said it will revert to its guide on applicable charges by banks and other financial and non-financial institutions at the end of the stated period.
“The charges for transactions that originate from the eNaira platform shall be free for the first 90 days commencing from October 25, 2021, and then revert to applicable charges as outlined in the Guide to Charges by Banks, Other Financial and Non-bank Financial Institutions,” it stated.
It noted that electronic funds transfer below N5, 000 is charged N10; N5, 001 – N50, 000 is charged N25 and for above N50, 000, a N50 charge is associated.
The bank also said phone numbers without verified National Identification Number (Tier 0) will have a daily transaction limit of N20, 000, while the maximum that the account can hold is N120, 000.
For phone numbers with verified NIN or Tier 1, CBN said they have a daily transaction cap of N50, 000 and a maximum balance of N300, 000.
Tier Two accounts will have access to a daily transaction of N200, 000, while N500, 000 is the maximum balance that can be held.
The Tier 3 account holder can transact a maximum of N1 million daily, while the Maximum balance it can hold is N5 million.
However, the CBN noted that merchant accounts have access to unlimited transactions.
It explained that merchants are duly accredited individuals and non-individual (corporates) authorised to conduct business in Nigeria.
