CBN expands Nigeria's global influence with eNaira adoption

In a bid to broaden Nigeria influence globally, the Central Bank of Nigeria (CBN) is expanding the use of its digital currency, the eNaira, as a global leader in the adoption of central bank digital currencies.

This information is contained in CBN 2024-2025 Monetary, Credit, Foreign Trade, and Exchange Policy Guidelines obtained on Monday.

The report explained that the expansion would enable payments into government accounts and allow ministries, departments and agencies to initiate vendor and beneficiary payments using the eNaira.

Part of the guildlines in the report read in part, “The CBN shall continue to work towards enabling the use of eNaira wallets/channels by payers to pay into government accounts at the CBN and allow ministries, departments and agencies to initiate vendor/beneficiary payments from their respective eNaira wallets."

Recall that a U.S.-based Atlantic Council released a report that Nigeria had earned a place among the top three countries globally, with significant traction.

The CBN introduced the eNaira in October 2021, making Nigeria the first African country to launch a CBDC and the second in the world after the Bahamas 'Sand Dollar'.

“In Nigeria and the Bahamas, CBDC issuance has increased substantially,” the report noted.

According to the report, 98 per cent of the world’s GDP is represented by 134 countries and currency unions currently investigating the potential of central bank digital currencies.

“In May 2020, that number was only 35. Currently, 66 countries are in the advanced phase of exploration—development, pilot, or launch.

“There is a new high of 44 ongoing CBDC pilots, including the digital euro. European countries, both in the euro area and beyond, are increasingly testing wholesale CBDCs, both domestically and across borders,” it added.

According to data from the apex quarterly statistical bulletin for the first quarter of 2024, Nigeria had N3.87tn in currency circulation as of March, with the eNaira accounting for N13.98bn.

This represents approximately 0.36 per cent of the total currency in circulation.

The CBN has partnered with banks, fintech companies, and merchants to promote the adoption and use of the eNaira.