President Muhammadu Buhari on Monday announced that with the introduction of detail currency by the Central Bank of Nigeria (CBN) the nation’s Gross Domestic Product (GDP) is projected to rise by $29 billion in the next years. This is even as the CBN Governor, Mr. Godwin Emefiele, revealed that since the launch and going live of the eNaira platform, there had been overwhelming interest and encouraging response from Nigerians and other parties across the world, with over 2.57 million daily visit to the website. The digital currency has two applications; speed wallet and eNaira merchant wallet, which were launched on the Google Playstore and Apple Store. The President for emphasis also stressed that Nigeria was the first country in Africa and one of the first in the world to introduce digital currency to her citizens. Buhari said with the introduction of the eNaira government will be able to send direct payments to citizens eligible for specific welfare programmes as well as foster cross-border trade.
He added it will increase remittances, improve financial inclusion, make monetary policy more effective, and other benefits. President Buhari said, “estimate suggests the adoption of new CBN digital currency is estimated to increase Nigeria’s GDP by $29 billion over the next 10 years.
“We have become the first country in Africa and one of the first in the world to introduce a digital currency to our citizens.”
Other countries like China, the Bahamas, and Cambodia have also launched digital currencies.
The President said that the digital currency’s new payment system which has taken four years to crystallise, will drive financial inclusion, serve as a backbone for electronic payment in Nigeria and also enable the movement of more people from the informal sector, hence scaling up the tax base of the country.
While giving reason for approving the digital currency Mr. President said, in recent times the use of physical cash in conducting business and making payments has been on the decline. This trend has been exacerbated by the onset of the COVID-19 pandemic and the resurgence of a new Digital Economy.
He said alongside these developments, businesses, households, and other economic agents have sought for new means of making payments in the new circumstances.
"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.
