It important for Nigerians to know that the digital currency named e-Naira that has just been launched by the Federal government of Nigeria through the Central Bank of Nigeria (CBN) is not crypto currency. Therefore, it is a misconception to conclude that the federal government of Nigeria has introduced e-Naira as an option to the crypto which was banned earlier in the year.
For the avoidance of doubt, the e-Naira is a payment system intended to complement the existing payment system in Nigeria. It is a Nigerian digital currency that is issued and regulated by the CBN. The digital currency has the same value as the physical Naira and it is intended to guarantees easy, secure, and fast transfers and payments anytime and anywhere. Isn’t there a system already in place to guarantee all these?
The CBN has been commended for this initiative which several people consider to be a giant stride that would propel E-Banking Business in Nigeria. Some people claim that this initiative has placed Nigeria as a leading nation in the world of E-Banking and technology driven financial transactions.
However, the CBN still has not clearly articulated what precisely the e- Naira can accomplish that is not already possible without it. What the e -Naira is targeted at achieving had already commenced in Nigeria some two decades ago with the advent of internet technology and the globalization of the banking system.
Long before the advent of Nigeria’s digital naira, the electronic banking sector has increased remittances, promote cross-border trade, advance financial inclusion, and make monetary policy more effective. These are the same things that the e-Naira is aimed at accomplishing. This surely looks like duplication!
While some experts praised the initiative, they have not been able to convincingly state what the e – Naira will accomplish that is different from the electronic transactions carried out by Nigerians on the internet, cash apps, and POS machines. Since the e – Naira is not crypto currency; it is not going to rise in value like bitcoin.
In every sense, the e-Naira is the same money that is presently in your bank account and which you already transact through bank apps. Whatever you can do with the e – Naira locally or internationally can also be done with an ATM card.
Nigeria is already haunted by a staggering and needless duplication of efforts which has led to overlapping functions and responsibilities. The apparent duplication and overlap of functions of some ministries, departments and agencies.
(MDAs) in Nigeria indisputably present a constraint to achieving efficiency. The country must avoid such duplication for things to work more efficiently.
If Nigeria has an existing electronic banking sector that has been carrying out the functions that the e-Naira is set to do, then what is the justification for this new initiative? This is another duplication of function — a policy somersault.
