CBN Asks FG To Use eNaira To Transfer N368.8 Billion To Nigerians

• The Central Bank of Nigeria wants to use the eNaira to transfer N368.8 billion to poor Nigerians.
• The apex bank is begging the Nigerian government to adopt a digital currency to transfer funds.
• The Federal Government plans to transfer $800 million to poor and vulnerable Nigerians in 2023

The Central Bank of Nigeria has pitched the eNaira to the federal government as the best alternative for sharing $800 million, about N368.8 billion, in its National Social Safety Net Programme Scale Up. The pitch by the CBN is an effort to drive and strengthen its cashless policy.

eNaira Can Be Re-Programmed For The Poor

The CBN’s National Fintech Strategy document included the pitch. The National Financial Inclusion Steering Committee, which is led by CBN Governor Godwin Emefiele, is credited with creating the document, according to the CBN.

The document states that payments to the poor and defenceless on the social register can be pre-programmed for the eNaira.

The document read:

“The central bank can use a pre-programmed eNaira to pay intended beneficiaries on the social register, which could be accepted only for a specific purpose and at specifically authorised locations. “This use case will ensure the proper use of social funds, ensure high-quality data can be collected on the performance of these programs, and help to prevent leakage or diversion of funds. This capability could be extended to other use cases in financial services and related ecosystems, where a priority exists to maintain the integrity of funds and the purpose for which it is used.”

The document from CBN stated that the goals of the digital currency include the effectiveness of monetary policy, financial inclusion, payments, and remittances.

ProgrammeTo Gulp N368.8 Million

According to Punch, the National Safety Net Programme Scale-Up will start in 2023 after receiving approval from the National Assembly at the cost of about $800 million to the Nigerian government.

The World Bank reportedly blessed the program on December 16, 2021, and it will be in effect until June 30, 2024. The Ministry of Humanitarian Affairs, Disaster Management, and Social Development will carry out the program. A total of 12.06 million poor and vulnerable households, including 49.81 million people in its database, are found in Nigeria, according to data from the National Social Safety Net Coordinating Office.

CBN Invites US Tech Company To Revamp eNaira, Proposes $800m Transfer To Poor

Nigerians previously reported that the Central Bank of Nigeria (CBN) had contacted a New York-based tech company, R3, to assist in rebuilding the CBDC and its underlying technology as part of its efforts to revamp and accelerate the mass adoption of its digital currency, the eNaira.

According to a Bloomberg report, the central bank is discussing creating a special and improved system to manage the digital naira with new tech partners. According to the report, the new software would give the CBN more control over the eNaira.