Corps Members Should be Paid With e-Naira – Blockchain Expert Proposes

• More than three years post-launch, the CBN is still trying to drive adoption of the eNaira among Nigerians
• An expert has recommended ways the government can incentivise Nigerians to use the eNaira
• He explains that if they are first compelled to use it, they can see the benefits and decide to continue with it

Legit.ng journalist Ruth Okwumbu-Imafidon has over a decade of experience in business reporting across digital and mainstream media.

Almost four years after its launch, the eNaira is yet to see the anticipated level of adoption, but there may be a way around it.

A blockchain and crypto expert, Solomon Amunde, has recommended that the government speed adoption by using the e-naira to pay members of the National Youth Service Corps (NYSC) the monthly allowance.

According to Amunde, this would become the incentive for the public to adopt the use of the e-naira.

Read also

Traders crash naira, sell dollar at new exchange rate as CBN fights back

He added that all government payments should be made using the e-naira, especially for corps members and civil servants.

CBN introduces E-naira

In October 2021, the Central Bank of Nigeria launched the E-naira, making Nigeria the first African country to introduce a digital currency backed by its central bank.

It was meant to be an electronic version of the naira, a virtual currency backed and issued by the CBN, just like the naira, and the CBN announced that the aim was to drive financial inclusion by bringing the unbanked into the financial system.

According to the CBN, the e-naira, which had the same value as the naira, would also help cut down the cost of printing money, simplify cross-border payments and trade, and improve the tax remittance system, among others.

Recall that this was coming at a time the federal government tried to reduce the use of cryptocurrencies for digital transactions, because they could be volatile and the anonymity made it impossible to trace.

Read also

NNPCL finally gets buyer, set to ship first crude cargo to Europe

With the e-naira, this was expected to be solved with the CBN being the central control system that would monitor and regulate transactions.

E-naira records low adoption despite downloads

Within a month, the app recorded 589,000 downloads across iOS and Android app stores, and sometime in 2022, the CBN announced that it had processed transactions worth almost $10 million.

But that was as far as it went. In July 2023, the International Monetary Fund (IMF) said it was still at 0.5% adoption in Nigeria, with over 98.5% of the existing wallets inactive for over a year.

Even though over 13 million wallets have been created, less than 2% are in active use. Amunde told the CABLE that this is because the CBN did not clearly communicate the value proposition to Nigerians with use cases.

He noted that if people are made to use them, and understand that it offers lower transaction costs and instant transfers, there would be more incentives to switch.

Read also

NNPC: Experts react to Tinubu's sack of Kyari, appointment of Ojulari

He said;

“Corp members should be paid through the eNaira. All government payments will be made via the eNaira. Civil servants should be given two weeks or a month to submit their eNaira wallet details, as the means through which they’ll be paid.”

He stated further that the e-naira could be added as a means of payment on government platforms for items like the driver's license or international passport.

CBN announces E-naira as a means of payment

In 2024, the CBN announced that the eNaira will be accepted as payment for goods and services into government accounts.

The development would also enable MDAs to begin paying vendors and beneficiaries using the eNaira wallet.

Meanwhile, CBN announced that the value of e-naira had risen by 31% year-on-year to N18.38 billion, with improved transactions.

CBN set to introduce eNaira v.2.0

In related news, the CBN has announced plans to introduce the eNaira version 2.0.

Read also

Petrol marketers raise alarm over naira-for-crude deal, demand probe

This would increase eNaira's acceptance and adoption in the public and private sectors, and ensure easier payments.

According to the CBN, this would involve working with the federal and state governments to promote the adoption and introduction of eNaira version 2.0.

Source: Legit.ng