Nigerians Prepare for CBN's eNaira, Expected to Revolutionise the Country's Payment System
- Barring any last mintue changes, Nigeria digital currency, eNaira will be become an acceptable legal tender in the country
- Already, the website, www.enaira.com is live with reports of 1 million hit in less than 24 hours
- Nigeria will be become the first African country with a digital currency equivalent with the paper note
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The Central Bank Digital Currency (CBDC) eNaira, will be fully operational as legal tender in the country from October.
According to CBN, eNaira will function as the digital version of the Naira and will be used in the same manner as the physical currency.
However, many Nigerians are still unsure about what to anticipate and how to participate. Here are all the answers to all your eNaira queries.
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What makes eNaira different from the money in my bank account?
eNaira in the coming months will serve as the digital equivalent of cash. Just as the paper currency CBN digital currency is a direct obligation of the Central Bank of Nigeria, while deposits are direct liabilities of financial institutions.
How Will eNaira work?
Upon registration, users will be asked to create a wallet ID. The eWallet will serve as a store which can only be access with a unique password from which you can execute transactions. It is crucial to note that no matter how long the cash is held in the user's wallet, it does not accrue interest.
What is the difference between an online bank transaction and an eNaira wallet transaction in a typical transaction?
Online banking serve as intermediaries for conventional online bank transactions, but there are none for eNaira transactions all you do is login access your wallet and make payment. Transactions between two users are free.
In fact, there are no fees for withdrawals and deposits to and from users bank account.
How will dollar transfers to e-Naira work?
The e-Naira will be incorporated into the CBN's FX procedure, making it simpler to send money to Nigeria.
Simply, for sending money abroad the CBN credit the International Money Transfer Organization(IMTO) directly.
While for a Nigerian living in another country who wishes to send let say $50, to a family member. All to do is walk into bank and credit an IMTO, the sender bank would then buy eNaira from their equivalent Nigerian bank. Immediately, the $50 is promptly changed to e-Naira at a far cheaper transfer charge.
Will eNaira replace cash?
The CBN has repeatedly noted that the eNaira will circulate alongside cash. It will also be less costly, more efficient, safe, and trusted means of payment.
Is eNaira safe?
According to CBN, eNaira is safe and secured with cryptographic techniques against counterfeiting, cloning, and other forms of attack.
CBN also promised privacy similar to the current online banking options
CBN statement reads:
"The eNaira system was created with data and user privacy in mind. In addition, operational standards and procedures are in place to secure users' identities and privacy."
Who can access eNaira?
Similar to cash, any person or business can have access to eNaira as long as they have the requirements for onboarding.
What is the exchange rate between eNaira and physical naira?
The eNaira will have the same value as the physical naira. As such, it will be exchanged one to one.
How to get started
- Get the eNaira app;
- Type in the bank's invitation code;
- Fill in the required identity information (e.g., NIN, BVN, or know your customer (KYC)/anti-money laundering (AML) information, depending on the client tier);
- Provide further identity information (name, address, date of birth, phone number, passport photo, email address, and password);
- Validation of the minimum ID
- Your banking institution notifies you;
- Create a user account.
For Business, these are what you have to do
- The merchant installs the eNaira mobile app;
- Enters and confirms the bank's invitation code;
- Enter the bare minimum of identifying information (i.e., Full KYC as required by the CBN's AML/counter-financing (CFT) requirements.
- Provide your tax identification number (TIN);
- Once your TIN has been validated, add your other identifying information (email, password, company category, and legal business name).
- The application is verified by a financial institution.
- Created and activated an eNaira wallet;
- Merchants and financial institutions are notified.
How much can you fund your account with?
For tier one–customers without an existing bank account
- A national identity number (NIN) is required for account opening;
- A daily transaction limit of N50,000 is imposed;
- A maximum cumulative daily balance of N300,000 is permitted.
- Account opening requires a bank verification number (BVN);
- A daily transaction limit of N200,000;
- A maximum cumulative balance of N500,000.
CBN list successes recorded with eNaira after one year, onboards tricycle drivers, traders in Oshodi, Orile
Tier 3 customers with steady spending power
- The minimum account opening criterion is BVN;
- The daily transaction limit is N1,000,000;
- the maximum cumulative balance is N5,000,000.
Then there's this for merchants and businesses:
- Full KYC as specified in the CBN's AML/CFT rules;
- Daily Transaction Limit: N1,000,000;
- Maximum cumulative balance is limitless.
How to fund your wallet
You may fund your eNaira wallets by transferring money from your bank. The cash is subsequently sent to an eNaira verification agent/bank branch/CBN Shared Agent Network Expansion Facilities (SANEF), and the agent puts the cash equivalent into the customer's eNaira wallet.
The CBN has informed Nigerians that the eNaira would not replace currency, but rather will be exchanged alongside cash, complementing cash as a less expensive, more efficient, widely recognized, safe, and trustworthy mode of payment.
CBN sued for infringement
In a similar development, A Nigerian company have sued CBN for the Name eNaira, which another yet to be identify Nigerian wants N6.6m to Sell Similar domain to the official one.
The company in a notification addressed to CBN by the aggrieved owner of eNaira Payment Solutions and signed by Olakule Agbebi Esq for Olakule Agbebi & Co., it stressed the choice of the eNaira is an infringement on its rights.