eNaira: All You Need To Know About Nigerian Digital Currency – [Complete Guidelines]

The Central Bank of Nigeria has released detailed and official guidelines on the newly launched Nigerian digital currency, eNaira.

Naija News reports that President Muhammadu Buhari on Monday, October 25 declared the official use of the new era electronic version of the nation’s local paper currency. Present at the unveiling were the Vice-President, Prof. Yemi Osinbajo, and the Central Bank of Nigeria (CBN) Governor, Godwin Emefiele.

The launching was done at the States House in Abuja. Naija News understands that over 5000 people have downloaded the e-naira speed wallet application meant for individuals, just a few hours after it was launched.

Bonus On E-Naira mobile app:

The CBN has noted in its guideline that for the first 90 days of use, starting from October 25, there would be no charges on all transactions originating from the E-Naira platform.

The apex bank stated clearly that after the 90 days, charges, as outlined in the guide to charges by Banks, other financial and non-bank financial institutions, will become effective.

Security:

Individual’s funds on the E-Naira platforms according to CBN are well protected only with two-factor authentication and other measures put in place.

All banks, according to the CBN will automatically be onboarded while merchants will be onboarded once they download the app and individuals will have to onboard by themselves.

Naija News understands that there would also be different wallets for different stakeholders.

“The eNaira stock wallet belongs solely to the CBN and it shall warehouse all minted eNaira” the guideline stated.

Creation of wallets for individuals and financial institutions:

The apex bank noted in the regulatory that financial institutions are to maintain one treasury E-Naira wallet to warehouse eNaira received from the CBN E-Naira stock wallet.

It, however, guarantees that the E-Naira sub-treasury can be created for bank branches tied to it and can as well fund the same from its single treasury account.

“Financial Institutions (FI) may create eNaira sub-treasury wallets for branches tied to it and fund them from its single eNaira treasury wallet with the CBN and FI may create eNaira branch sub-wallets for its branches,” CBN noted.

The regulatory added: “The eNaira branch sub wallet shall be funded from the treasury E-Naira wallet.

“E-Naira Merchant speed wallets shall be used solely for receiving and making eNaira payments for goods and services. eNaira speed wallets shall be available for end-users to transact on the E-Naira platform.”

Daily Transaction Limit:

For Tier 0 – daily transactions are limited to ₦20,000 with a maximum balance of ₦120,000. Requirements for this tier is just a personal phone number without a verified National Identity Number.

For Tier1 – daily transactions are limited to ₦50,000 with a maximum balance of ₦300,000 daily.

While for Tier2 and Tier3 categories; the daily transaction limits are pegged to ₦200,000 and ₦1 million as well as ₦500,000 and ₦5 million as maximum balance.

Naija News understands that the E-Naira will compliment cash as a less costly, more efficient, generally acceptable safe and trusted means of payment and store of value.

The CBN director Financial Policy and Regulation Department, Chibuzo Efobi, noted in the guidelines that the digital currency will improve monetary policy effectiveness, enhance the government’s capacity to deploy targeted social interventions, provide alternative less costly channels for collection of government revenue and boost remittances through formal channels.

“The guidelines seek to provide simplicity in the operation of the eNaira, encourage general acceptability and use, promote low cost of transactions, drive financial inclusion while minimizing inherent risks of disintermediation or any negative impact on the financial system,” the regulatory further noted.