The Central Bank of Nigeria has come up with a digital currency for the ease of Nigerians as physical cash processes are becoming bulky. This digital currency is the first in Africa and it has the same value as the physical currency but cannot be withdrawn like the usual Naira.
Inaugurated on 25th October, 2021, this electronic currency is made to make financial transactions easier for Nigerians as it is faster and better. It has an e-wallet which holds and stores the eNaira currency.
Learn more about this amazing new eNaira currency and how the eNaira wallet works as we delve into this article.
eNaira is a digital currency issued by the Central Bank of Nigeria which provides a unique form of money. This is a digital form of Naira which has the same value as the physical currency. It is also known as Central Bank Digital Currency (CBDC), this means that it only exists in the digital and electronic form as regulated by CBN.
This eNaira was inaugurated on October 25th, 2021 by Nigeria President Muhammad Buhari with the slogan; “Same Naira, More Possibilities”. It has a dual purpose as it serves as a medium of exchange and a store of value which offers better transactional processes than cash. It enables users to make a fast and reliable transaction.
With the app which is known as eNaira wallet, transactions can be carried out. It has also been made easy for all through the introduction of the USSD code which anyone can easily use without spending data.
The eNaira was developed by Bitt, which is a Fintech company based in the Carribeans. Nigeria is the first country in Africa to own and develop a digital currency which can be used for transactions.
It helps in increasing economic activities by making access to capital and financial services easy. It fosters economic growth as these economic activities are at a low or no interest transaction rate.
It enhances faster distribution of funds to individuals, households and communities which are enlisted in the social welfare program. eNaira makes the process a lot easier and better.
This digital currency gives maximum security to funds as it cannot be forged or stolen. Even when your smartphone is being stolen, you can always recover your funds
It increases local and foreign trade as it makes transactions easier, faster and better. It enhances trust from foreigners.
It reduces the cost of cash handling which aids revenue. This in turn protects individuals from being exposed to theft due to carrying cash around
This is mobile wallet with which you can get access to the eNaira. You can use the eNaira wallet to store your funds securely. eNaira can be exchanged with other Central Bank Digital Currencies through the wallet.
This wallet is an app which can be gotten through the Google Play Store and the Apple Store for Android and IOS users respectively. This app was officially present on the platform on the 28th of October, 2021. It has a registration and onboarding process which one must go through before having access to the eNaira currency.
Like other fintech wallets, there are balance or transactional limits for an individual’s eNaira Wallet. The daily transaction limit for Tier 0 in the wallet is N20,000.00 and the balance speed wallet limit is N120,000.00. The daily transaction limit for Tier 1 is N50,000.00 and the speed wallet balance limit is N300,000.00
The daily transaction limit for Tier 2 is N200,000.00 and the balance limit is N500,000.00. The daily transaction limit for Tier 3 customers is N1,000,000.00 and the balance limit is N5,000,000.00. However, there is no limit for Merchant accounts.
- Financial Institutions: These are intermediators between CBN and the end users. They anchor the onboarding process of bank customers which are the merchants and individuals while also helping with eNaira Wallet features integration on their electronic devices. They also ensure that participants on the eNaira platform complies to the KYC/AML/CFT requirements.
- Central Bank of Nigeria: CBN has a role to play by minting, issuing and distributing eNaira as well as ensuring compliance to eNaira regulations.
- Merchants: Their role is to protect their account from fraudulent practices as well as provision of cashback services. They also promote the alternative means of payment which is the fast growing eNaira.
- Ministries, Departments and Agencies (MDAs): They may choose to use eNaira for their transactions; receiving revenues and making payments.
- Customers: These are the end users whose roles are to create and fund their account with eNaira through the eNaira wallet. They are also authorized to use the digital currency for transactions while giving it maximum security. They will report to the financial institutions in the case of any problem on their accounts.
There are five categories of eNaira wallets and these five categories are managed by Digital Currency Management System (DCMS).
- eNaira Stock Wallect which is managed by CBN
- eNaira Treasury Wallet which is managed by Financial Institutions (FIs)
- eNaira Branch Wallet which is managed by FIs
- eNaira Merchant Speed Wallet which is for the merchants
- eNaira Speech Wallet which is for individual end-users
- Go to your Google Play Store or Apple Store to download the eNaira speed App
- Tap on “Register”
- Select your bank
- You will receive an invitation code from your bank
- Input your information; BVN, NIN, Date of birth, Email (this depends on the customer tier you belong to)
- Upload a recent passport photograph of yourself
- Tap on “submit” when you complete the task
- You’ll get a notification from your bank for a successful registration
- You are then free to login your eNaira Wallet
- Tier Zero
This tier is for customers who don’t have an existing bank account or verified NIN.
The daily transaction limit is N20,000.00
Minimum requirement for opening account is Phone Number
Maximum Cumulative Daily Balance is N120,000.00
- Tier One
This tier is for customers with verified NIN but without an existing bank account.
Daily transaction limit is N50,000.00
Minimum requirement for opening account is NIN
Maximum cumulative daily balance is N300,000.00
- Tier Two
This tier is for customers with an existing bank account but minimal spending abilities.
Daily transaction limit is N200,000.00
Minimum requirement for opening account is BVN
Maximum cumulative daily balance is N500,000.00
- Tier Three
This tier is for customers with regular spending abilities
Daily transaction limit is N1,000,000.00
Minimum requirement for opening account is BVN
Maximum cumulative daily balance is N5,000,000.00
- Download the eNaira Mobile App which is for merchants
- Input and validate the invitation code from the bank
- Enter minimum requirement details for opening this account which is a full KYC
- Input your Tax Identification Number (TIN)
- After verification, input other identification information required
- Financial Institutions will verify your application and approve it
- After this, your eNaira Wallet is created and activated successfully
- Both the Financial Institutions and the Merchant will get the notification
This category is also for customers with regular spending abilities who desire to be a merchant in eNaira wallet.
Daily transaction limit is N1,000,000.00
Minimum requirement for opening an account is full KYC. This is as stipulated in the CBN’s AML/CFT Regulations
Maximum cumulative daily balance is unlimited. This means a merchant is free to keep as much he can get in his/her eNaira wallet.
The Ministries, Department and Agencies (MDAs) also have their app which they can download and make use of.
- Download the MDA eNaira wallet App
- You will login with the MD code
- Input the account (TSA/T24 Account)
- eNaira wallet will be created while awaiting CBN’s verification
- CBN will later verify and notify MDA
- MDA will proceed with the funding
- Open and login your bank app
- Make a transfer to your eNaira wallet which is connected to the bank account on that bank
- You’ll be notified for a successful transaction
- Open and login to your bank app
- Make transfer to your eNaira wallet by choosing your eNaira wallet which is tied to another bank
- You’ll get notified of the funding in your e-wallet
The Nigerian government through the eNaira digital currency is trying to ensure the financial stability of the nation. This eNaira has a lot of benefits ranging from growth, inclusion, remittance, monitoring, welfare, etc.
It can be seen that this eNaira wallet will help make banking transactions faster, easier and better for Nigerians. The best part of this currency is that it is not affected by inflation thereby maintaining its value.