CBN Appoints 3 New Banks to Collect Fees, Debunks Claim eNaira Threatens Financial Stability
- The Central Bank of Nigeria has released the names of three additional commercial banks for fee collection
- They are Parallex Bank, Lotus Bank, and Coronation Merchant Bank, the three banks authorised by CBN
- In another report, CBN denied saying the eNaira threatens financial stability as claimed.
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The Central Bank of Nigeria has appointed three new commercial banks to collect fees under the Nigerian Export Supervision Scheme (NESS).
A circular dated October 6, 2023, signed by the bank's Director of Trade and Exchange Department, W.J. Kanya, said the approval was granted by the Minister of Finance, Budget and National Planning, Wale Edun.
The apex bank named Parallex Bank, Coronation Merchant Bank, and Lotus Bank as additional financial institutions authorised for fee collection under the scheme.
Source: Getty Images
CBN denies report on eNaira causing financial instability
Meanwhile, the bank has denied media reports that it said the digital currency, the eNaira, threatens Nigeria's financial stability.
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The apex bank addressed the claim in a statement signed by its Director of Corporate Communications, Isa AbdulMumin.
The CBN said the rumours were based on a lack of proper understanding of some articles in its recently issued Economic and Digital Currencies report.
The CBN spokesman said contrary to the claim, the publication provides an in-depth knowledge of Central Bank Digital Currencies (CBDCs) generally and the mechanisms of the eNaira in particular.
He said the publication highlighted issues and challenges in the implementation report.
According to AbdulMumin, the eNaira continues to evolve and undergo modifications to improve user experience across all interfaces.
What the report says
Media reports recently stated that a recent report by CBN has raised concerns about the performance of the eNaira.
In its report, the apex bank warns about stability trouble due to converting bank deposits into eNaira.
Per the report, bank deposit conversion to eNaira has shown a monthly growth of 78.3% since its launch, averaging about N1.66 billion.
The report stated that the impact came from the fact that funds converted by customers into digital currency are held in wallets kept with the CBN and unavailable for lending by commercial banks.
The financial institution regulator reportedly minted a total of N2 billion in naira.
The apex bank had touted digital currency as an alternative to cash transactions, especially at the height of the cash scarcity early this year.
The CBN also asked the Nigerian government to adopt eNaira in its conditional cash transfer programmes.
“No smart strategies”: Why Nigerians shun eNaira, opt for mobile money, IMF tells CBN
In an earlier report by Legit.ng, the International Monetary Fund (IMF) counselled the (CBN) on what to do to boost eNaira adoption in Nigeria.
The IMF revealed in a recent report that the adoption of the eNaira in the country could be much higher.
A report by the IMF showed the adoption of eNaira could have been much higher.
Source: Legit.ng
