The decision of the Central Bank of Nigeria (CBN) under the leadership of the Governor, Mr. Godwin Emefiele, to introduce the e-Naira, was in the pursuit of efficient payment system in the country.
The e-Naira which was launched by President Muhammadu Buhari on October 25, 2021, was the first central bank digital currency in Africa.
The CBN boss said that the e-Naira, and its underlying block chain could increase Nigeria’s Gross Domestic Product (GDP) by $29 billion, in 10 years.
Fresh Opportunities As e-Naira Enters Phase II
He added that the introduction of the e-Naira would enable the government to send direct payments to citizens eligible for specific welfare programmes, as well as, foster cross border trade.
The governor added that alongside digital innovations, digital currencies could foster economic growth through better economic activities, increase remittances, improve financial inclusion and make monetary policy more effective.
”Let me note that aside from the global trend to create Digital Currencies, we believe that there are Nigeria-specific benefits that cut across different sectors of, and concerns of the economy. ‘The use of CBDCs can help move many more people and businesses from the informal into the formal sector, thereby increasing the tax base of the country,” he said.