Victor EzejaPRESIDENT Muhammadu Buhari has said the digital currency, eNaira created by Central Bank of Nigeria would according to expert economic projection, increase the country’s Gross Domestic Product (GDP) by $29 billion USD in the next ten years.
Buhari stated this during the formal launching ceremony of the eNiara in Abuja on Monday, as monitored by Prime Business Africa.
The President said that following the quest by the citizens and various economic agencies for a better means of solving problems of 21st century financial transactions in the country, the CBN through his approval created the eNaira to ease transaction hassles and enhance business activities.
He said that countries like China, Bahamas and Cambodia have started issuing their central bank digital currencies, adding that a survey by Bank for International Settlements has shown that “90 percent of countries are actively researching the potential for central bank digital currencies; 60 percent were experimenting with the technology, and 14 percent were deploying pilot projects.”
The President remarked that aside from the global trend for creation of central bank digital currencies, the eNaira has Nigeria-specific benefits that cut across different sectors of the economy.
His words, “Let me note that aside from the global trend to create a digital currency, we believe there are Nigeria specific benefits that cut across different sectors and concerns of the economy.
“The use of central bank digital currency can help move more people and businesses away from informal into the formal sector, thereby creating the tax base of the country.
“Alongside digital innovation, Central Bank digital currency will boost our economic growth through better economic activities,”
He added that the eNaira now serves as the backbone for all electronic payments.
Earlier in his address, CBN Governor Godwin Emefiele stated that the eNaira platform offers a resilient payment ecosystem and enhances financial inclusion in the country.
Emefiele listed some of the benefits of the digital currency to include, increasing revenue and tax collection, facilitating diaspora remittances to Nigeria, making the payment system efficient and transparent.
The CBN governor explained that the eNaira, just like the physical Naira, is a legal tender in Nigeria.
He added that the eNaira is a digital equivalent of the physical Naira in terms of exchange during transactions, noting that careful consideration was given to the entire financial architecture before creating the eNaira to ensure the integrity of the financial system.
He further stated that there will be strict adherence to anti-money laundering regulations in the deployment of the digital currency for transactions.
The apex bank boss disclosed that the bank has minted N500 million eNaira and already issued N20 million eNaira to banks.
He noted that since the eNaira platform went live, it has received overwhelming responses from Nigerians and overseas as it has recorded over 2.5 million visitors to the site almost on daily basis.
He also stated that over 2000 customers have been onboarded on the platform, 33 banks fully integrated into the platform, while over 120 merchants have successfully registered on the eNaira platform, and expressed hope that more would enrol.
The digital currency went live on Monday after the President officially launched it.
Emefiele stated with the digital currency having gone live, people can now download the eNaira Speed Wallet App, onboard and create their wallets, fund their eNaira wallets, make transfer to other wallets and also perform other transactions.
Victor Ezeja is a passionate journalist with six years of experience writing on economy, politics and energy. He holds a Masters degree in Mass Communication.
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