Why Nigeria Needs eNaira -Buhari

President Muhammadu Buhari,has explained that  he gave nod  for the establishment of digital currency better known as eNaira  on the strength of its benefits to the country.

He spoke  in Abuja at the official launch of the eNaira,saying that in recent times, the use of physical cash in conducting business and making payments has been on the decline.

He said this trend has been worsened  by the COVID-19 pandemic and the resurgence of a new digital economy,stressing that  alongside these developments, businesses, households, and other economic agents have sought for new means of making payments in the new circumstances.

He said:”The absence of a swift and effective solution to these requirements, as well as fears that Central Banks’ actions sometimes lead to hyperinflation created the space for non-government entities to establish new forms of “private currencies” that seemed to have gained popularity and acceptance across the world, including here in Nigeria.In response to these developments, an overwhelming majority of Central Banks across the world have started to consider issuing digital currencies in order to cater for businesses and households seeking faster, safer, easier and cheaper means of payments.

”A handful of countries including China, Bahamas, and Cambodia have already issued their own CBDCs.A 2021 survey of Central Banks around the world by the Bank for International Settlements (BIS) found that almost 90 per cent are actively researching the potential for CBDCs, 60 percent were experimenting with the technology and 14 per cent were deploying pilot projects.Needless to add, close monitoring and close supervision will be necessary in the early stages of implementation to study the effect of eNaira on the economy as a whole.

”It is on the basis of this that the Central Bank of Nigeria (CBN) sought and received my approval to explore issuing Nigeria’s own Central Bank Digital Currency, named the eNaira,’’ he said.

According to him,his approval was also underpinned by the fact that the CBN has been a leading innovator ‘‘in the form of money they produce, and in the payment services they deploy for efficient transactions.’’

He disclosed  that the Central Bank of Nigeria has invested heavily in creating a Payment System that is ranked in the top ten in the world and certainly the best in Africa.

”This payment system now provides high‐value and time‐critical payment services to financial institutions, and ultimately serves as the backbone for every electronic payment in Nigeria.

”They have also supported several private‐sector initiatives to improve the existing payments landscape, and in turn, have created some of the world’s leading payment service providers today,’’ he said.