Central Bank Of Nigeria Continues Its Commitment To Digital Currency Projects Despite Interests Down

Governor of CBN (Sentral Bank of Nigeria), Godwin Emefiele (photo: Governor of CBN, Godwin Emefiele)

JAKARTA - The Central Bank of Nigeria (CBN) remains committed to its digital currency project (CBDC) despite experiencing shocks and small public interest. They didn't even show any signs of ignoring it.

According to a report from local media The Sun, Nigeria's central bank recently stepped up its CBDC mobile app by combining Near Field Communication (NFC) technology. This upgrade allows mobile devices and payment terminals to interact closely, facilitating comfortable and contactless eNaira payments.

Although the previous version used QR code, CBN reportedly stressed that the addition of NFC technology would play an important role in increasing CBDC adoption rates. Joseph Angaye, deputy director of CBN risk management department, reportedly revealed that banking regulators are committed to using innovative technology to improve user experience.

Angaye also revealed that CBDC will be equipped with programming features. This programming feature can limit CBDC payments exclusively for designated government programs, thereby reducing the risk of fraud.

Furthermore, Angaye stressed that programming on CBDCs allows the allocation of targeted funds for farmers, for certain purposes such as acquisition of agricultural tools. With this approach, funds transferred to their eNaira wallet cannot be used for other unrelated purposes, thus ensuring the use of funds as intended.

Angaye also highlighted various CBDC advantages for retail users in the country, such as reducing settlement risks and enabling rapid transaction processing. He stressed that eNaira aims to address financial inclusion issues, and Nigerian pioneer role in adopting CBDC provides valuable insights for various stakeholders and economic entities to learn from the country's experience.

Nigeria launched eNaira in 2021 to become part of an exclusive group of countries with CBDC offerings. However, adoption rates have not reached expectations, so the central bank is looking for options to encourage use.

The central bank has introduced various cases of use in the transportation sector while including the functionality of the USSD in the offering. However, with a low adoption rate, the former Governor of CBN, Godwin Emefiele, blamed commercial banks for hampering eNaira's growth for their mutual gain.