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

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

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

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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.

CBN, eNaira, Social, Safety programme
CBN Governor, Godwin Emefiele Credit: NurPhoto / Contributor
Source: Getty Images

eNaira can re-programmed for the poor

The pitch was contained in CBN’s National Fintech Strategy document.

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The CBN says the document was designed by the National Financial Inclusion Steering Committee headed by the CBN Governor, Godwin Emefiele.

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CBN invites US tech company to revamp eNaira, proposes $800m transfer to poor Nigerians

According to the document, the eNaira can be pre-programmed for payments to the poor and helpless on the social register.

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.”

CBN stated in the document that the digital currency’s objectives include monetary policy effectiveness, financial inclusion, payments and remittance effectiveness.

Programme to gulp N368.8 million

Punch reports that the National Safety Net Programme Scale-Up will cost the Nigerian government about $800 million and will begin in 2023 after approval from the National Assembly.

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Reports say the World Bank approved the programme on December 16, 2021, and it runs till June 30, 2024.

The Ministry of Humanitarian Affairs, Disaster Management, and Social Development will implement the programme.

Data from the National Social Safety Net Coordinating Office reveal that there are abouT 12.06 million poor and vulnerable households in Nigeria, including 49.81 million individuals in its database.

CBN invites US tech company to revamp eNaira, proposes $800m transfer to poor Nigerians

Legit.ng reported earlier that the Central Bank of Nigeria (CBN) seeks to revamp and drive the mass adoption of its digital currency, the eNaira and has contacted a New York-based tech company, R3, to help rebuild the CBDC and its underlying technology.

A report by Bloomberg states that the apex bank is in talks with new tech partners to develop a unique and enhanced system to manage the digital naira.

The report stated that the new software would allow the CBN to have more control of the eNaira.

Source: Legit.ng

Authors:
Pascal Oparada avatar

Pascal Oparada (Business editor) Pascal Oparada is a Mass Communications Graduate from Yaba College of Technology with over 10 years of experience in journalism. He has worked in reputable media organizations such as Daily Independent, TheNiche newspaper, and the Nigerian Xpress. He is a 2018 PwC Media Excellence Award winner. Email:pascal.oparada@corp.legit.ng

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