• About Us
  • Careers
  • Contact
No Result
View All Result
Sunday, June 1, 2025
DeFi Planet
  • News
    • People
    • Business
    • Crime
    • Regulation
    • Crypto
    • CBDC
  • Markets
    • Bitcoin
    • Ethereum
    • Stablecoins
    • Altcoins
    • Crypto ETFs
    • Memecoins
  • Policy
  • Articles
    • Press Releases
    • Opinion
    • Explainers
    • Guest Post
    • Sponsored
  • Directory
    • Companies
    • People
    • Products
    • Wallets
  • Multimedia
    • Videos
    • Podcasts
  • Learn
    • DeFi Basics
    • Tutorials
    • Reviews
    • Blockchain Fundamentals
  • Research
    • Case Studies
  • Explore
    • DeFi
    • Crypto Gaming
    • NFT
    • DAO
    • Metaverses
  • Jobs
  • Markets Pro
    • DeFi Planet Pro
    • Spend Crypto
    • Swap Crypto
    • Coin Prices
    • Crypto Exchanges
    • Crypto Analyzer
  • News
    • People
    • Business
    • Crime
    • Regulation
    • Crypto
    • CBDC
  • Markets
    • Bitcoin
    • Ethereum
    • Stablecoins
    • Altcoins
    • Crypto ETFs
    • Memecoins
  • Policy
  • Articles
    • Press Releases
    • Opinion
    • Explainers
    • Guest Post
    • Sponsored
  • Directory
    • Companies
    • People
    • Products
    • Wallets
  • Multimedia
    • Videos
    • Podcasts
  • Learn
    • DeFi Basics
    • Tutorials
    • Reviews
    • Blockchain Fundamentals
  • Research
    • Case Studies
  • Explore
    • DeFi
    • Crypto Gaming
    • NFT
    • DAO
    • Metaverses
  • Jobs
  • Markets Pro
    • DeFi Planet Pro
    • Spend Crypto
    • Swap Crypto
    • Coin Prices
    • Crypto Exchanges
    • Crypto Analyzer
No Result
View All Result
DeFi Planet
No Result
View All Result

A New Regime Of Finance In Nigeria With eNaira- What Will Change?

10 November 2021
in Articles, Opinion
Reading Time: 8 mins read
107 5
Home Articles

Contents

Toggle
  • What is eNaira?
  • What benefits can eNaira pose?
    • Efficient Payment Channel
    • Better Cross-Border Payment and Remittance 
    • Heightened Tax Remittance Process
    • Targeted Social Interventions
  • Features of eNaira
    • Issuing Authority
    • Nationwide Acceptance
    • Instant settlement
    • Contactless Payment
    • Peer-to-Peer Payment
    • Unified Payment System
  • How to sign up on eNaira app
    • Is the eNaira app necessary?
  • What is the eNaira wallet?
  • How does it affect the value of naira?
  • How have Nigerians reacted to the release of eNaira?
  • In Conclusion

With the birth of the CBDC concept, different countries have actively been researching and developing ways to create their version. Nigeria is one of those countries that recently released their CBDC, eNaira which was created in partnership with Bitt Inc.

What is eNaira?

The eNaira is a digital currency that is based on a blockchain. It is not a cryptocurrency neither is it decentralized because it is controlled by the Central Bank of Nigeria- CBN. The digital currency should not be mistaken for a decentralized coin, with an ecosystem where users can submit proposals or vote on changes. Everything is determined by the issuing organization. Since it was released by CBN, it is a legal tender, and an alternative to the naira, meaning that it can be accepted by merchants that accept the naira. 

The main purpose of the eNaira is to improve financial inclusion to the unbanked members of society. Anyone can open an eNaira account, as long as they have a Nigerian BVN- Bank Verification Number. A BVN can be set up without necessarily having a bank account. 

It is expected to make it easy for Nigerians living abroad to send money to their loved ones back in Nigeria without having to deal with the stress of using a bank. 

A major reason for this CBDC is to improve the collection of taxes by the government. With this, it will be easy for both individuals and organizations to remit their taxes.

On the eNaira website, the CBN has publicly issued a disclaimer to users of the CBDC, not minding that they are the issuing party.

 It stated on the website that:

“In no event will the CBN or its directors, officers, employees, independent contractors, affiliates or agents, or any of its or their respective service providers, be liable to you or any third party for any use, interruption, delay or inability to use the eNaira website, lost revenues or profits, delays, interruption or loss of services, business or goodwill, loss or corruption of data, loss resulting from system or system service failure, malfunction or shutdown, failure to accurately transfer, read or transmit information, failure to update or provide correct information, system incompatibility or provision of incorrect compatibility information or breaches in system security, or for any consequential, incidental, indirect, exemplary, special or punitive damages, whether arising out of or in connection with the use of the eNaira website.”

What benefits can eNaira pose?

The coming of eNaira will be beneficial to both individuals and businesses in the following areas:

  • Efficient Payment Channel

The Nigerian banking system is filled with hiccups, and a major concern is chargebacks. Sometimes, a client may transfer money to a business account through USSD code or a mobile banking app, and it returns after the client has left. This means that the business may lose its funds. eNaira is devoid of chargebacks. Apart from the aforementioned, digital currency is fast and affordable.

  • Better Cross-Border Payment and Remittance 

With the e-Naira, Nigerians living in the diaspora can easily send funds to Nigeria. Every year, billions of dollars are sent home by Nigerians resident in other countries. Some are sent through unofficial channels because of the stress that comes with utilizing traditional banking systems to send money. eNaira will put a stop to this. 

  • Heightened Tax Remittance Process

The Nigerian economy depends on taxes, and the collection system is fraught with issues. Sometimes, the tax collected may be diverted from its official pipeline due to the lack of transparency in the collection and remittance process. The eNaira will alter this, as individuals and businesses can log in to their wallets to pay their taxes. 

  • Targeted Social Interventions

The Nigerian government has various programs that are focused on alleviating poverty and supporting the growth of businesses within the country. The eNaira will make it easy for the relevant governmental parastatals to send money to the right quarters. 

Bitt Inc disclosed a crucial benefit of the eNaira to users on its Twitter page, 

“As the technology provider for the #eNaira, The Central Bank of Nigeria seeks to use Bitt’s #DCMS to “enable households and businesses to make fast, efficient, and reliable payments, while benefiting from a resilient, innovative, inclusive, and competitive payment system.”

Features of eNaira

  • Issuing Authority

CBN is the issuing authority of the eNaira, and decides what happens to it. It is in charge of choosing the technical, regulatory, and operational standards for eNaira, and making changes where needed. As the apex bank of the country, the law- CBN Act of 2007- has given it the power to issue every form of the legal tender, Naira. 

  • Nationwide Acceptance

Since the eNaira was issued by the CBN, it is a legal tender and accepted by anyone living in the country. To buttress this, Nigerian banks have added the eNaira option in their mobile banking apps. 

  • Instant settlement

Immediately the eNaira is sent, it can’t be refunded without the permission of the receiver. Settlement is instantaneous and final. 

  • Contactless Payment

With the e-Naira, users can make payments by merely scanning their QR codes.

  • Peer-to-Peer Payment

eNaira holders can send money to other wallet addresses seamlessly.

  • Unified Payment System

The interface has been designed to allow users to move funds from their bank accounts to the eNaira wallet and vice versa.  

How to sign up on eNaira app

  • Start by downloading the eNaira wallet app on Google Play Store or Apple Store. 
  • The next thing is to fill out your details. It will request for your First Name, Last Name, Date of Birth, State of Origin, Email, and Bank Verification Number (BVN).

Is the eNaira app necessary?

The app is important for people that want to enjoy the features that the CBDC offers. 

What is the eNaira wallet?

The eNaira wallet holds the eNaira, and can be downloaded on mobile devices from app stores. The eNaira is different from the naira based on where the liability lies. The liability of eNaira and naira falls on the CBN and financial institutions respectively. 

How does it affect the value of naira?

The eNaira is the digital and version of the Naira, and it has a similar value with the physical naira. This means that they can be exchanged for one another. 

How have Nigerians reacted to the release of eNaira?

The release has brought mixed reactions from Nigerians, with some being hopeful that the eNaira will revolutionize financial activities in the country. On the other hand, there are those that feel the digital currency will hit a brick wall. 

According to Twitter user, @LordFutures

“Just finished reading the whitepaper(docs) of this proposed eNaira. I can’t say I’m disappointed because I already knew nothing good can come out from this government.”

According to a Financial Planner, Kalu @FinPlanKaluAja1,

“What’s the difference between Bank Transfer and eNaira?

You do not need a bank account to transfer or receive eNaira if you are transferring less than N50,000 a day

This means anyone with a mobile phone can use eNaira.

This is the real advantage, Financial Inclusion.”

Serial tech entrepreneur, Osaretin Victor Asemota, through his Twitter account, @asemota had this to say, 

“Every POS agent knows what is called eMoney. That is their digital float. Every bank customer who transacts digitally already knows that funds can be represented electronically. I am still at a loss on what eNaira is meant to solve other than helping the government print money.

My thinking is that either this CBDC has unadvertised properties (why I won’t download any app) or they have a plan to scrap all the digital wallet licenses that they’ve already issued. Existing licenses make all the properties they listed already possible but they refused telco.

Distribution can’t happen without infrastructure partnerships. I am still at a loss as to why we should prioritize digital money before digital access. ALL the people who can/will use any digital wallet via mobile are already telco customers. Why not make it easier for customers?”

A great deal of Nigerians had negative things to say about the first version of the eNaira wallet app released on the Google Play Store. Many had problems registering on the app, and the reviews on the Store have been scathing. At the time of writing this, the star rating for it was at 2.0.

In the foreign aspect, notable Economist at John Hopkins, Steve Hanke believes that the launch was not a smart move. He made this known in his tweet. 

“Nigeria’s central bank has launched a digital currency, eNaira, just months after barring financial institutions from transacting in crypto. Wrong move. The naira’s junk. Today, I measure inflation at 29.75%/yr. No.1 priority should be inflation control.”

In Conclusion

  • eNaira is a digital currency that is based on a blockchain.
  • It is a CBDC issued by the Central Bank of Nigeria in partnership with Bitt Inc.
  • eNaira will improve payment and settlement channels.
  • To sign up, users have to download the wallet app and sign up.
  • It claims to be peer-to-peer and removes the need for a bank, but the signing up process tells a different tale.

If you would like to read more articles like this, follow DeFi Planet on Twitter and LinkedIn.

Don't miss out!

Subscribe To Our Newsletter

Receive top education news, lesson ideas, teaching tips and more!
Invalid email address
Give it a try. You can unsubscribe at any time.
Thanks for subscribing!
Share65Tweet41Share11
Previous Post

Mercado Bitcoin, A Notable Latin America’s Cryptocurrency Exchange Is Set To Create Renewable Energy Tokens

Next Post

NYCCoin Receives The Blessing of Eric Adam, Mayor-Elect

Rose Nnamdi

Rose Nnamdi

Related Posts

Are Stablecoins Bank Deposits?
Articles

Are Stablecoins Bank Deposits?

31 May 2025
Is the Rise of “L2 Clusters” Accelerating Interoperability or Reinforcing Silos?
Articles

Is the Rise of “L2 Clusters” Accelerating Interoperability or Reinforcing Silos?

27 May 2025
Are Storage Tokens Worth the Hype?
Articles

Are Storage Tokens Worth the Hype?

27 May 2025
The Biggest Hacks and Exploits in DeFi History & What We Can Learn from Them
Articles

The Biggest Hacks and Exploits in DeFi History & What We Can Learn from Them

27 May 2025

Featured Posts

Assessing The Impact of China’s Crypto Crackdown

byOlajumoke Oyaleke
19 January 2025
0

Why Are We Trying to Make Bitcoin Like Ethereum? (And Why We Should Not)

byOlajumoke Oyalekeand1 others
3 January 2025
0

Global Crypto Taxation Trends: Supporting Growth or Hindering Innovation?

byOlajumoke Oyaleke
31 December 2024
0

The 10 Worst Crypto Mistakes And How To Avoid Them | DeFi Planet

The 10 Worst Crypto Mistakes And How To Avoid Them

byArjun Chand
26 August 2021
1

A Dive Into The Life Of Meme Coin, DogeCoin | DeFi Planet

From Comic Relief to Crypto Sensation: The Epic Evolution of Dogecoin

byRose Nnamdiand1 others
4 August 2021
0

Read More

Chain of Thoughts

Are Stablecoins Bank Deposits?

Are Stablecoins Bank Deposits?

byOlu Omoyele
31 May 2025
0

...

DAOs and the Coordination of Human Endeavour

DAOs and The Coordination of Human Endeavour

byOlu Omoyele
27 April 2025
0

...

Should DeFi Be Regulated?

Should DeFi Be Regulated?

byOlu Omoyele
27 March 2025
0

...

Is Tokenization All That It’s Cracked Up To Be?

Is Tokenization All That It’s Cracked Up To Be?

byOlu Omoyele
26 February 2025
0

...

Markets Update

Your Weekend Crypto Roundup | May 2025 (Week 5)

21 hours ago

Your Weekend Crypto Roundup | May 2025 (Week 4)

1 week ago

Your Weekend Crypto Roundup | May 2025 (Week 3)

2 weeks ago

Your Weekend Crypto Roundup | May 2025 (Week 2)

3 weeks ago

Your Weekend Crypto Roundup | May 2025 (Week 1)

4 weeks ago

Your Weekend Crypto Roundup | April 2025 (Week 4)

1 month ago
Read More

Events

Crypto Valley Conference
Crypto Valley Conference
5 Jun 25
Risch-Rotkreuz

Spotlight

All about Ethereum
All about Algorand
All about Bitcoin
All about Gora

Press Releases

Zircuit Enables Non-Custodial Wallet Top-Ups for Crypto.com Visa Cards

bychainwire
30 May 2025
0

Bet20 Launches Premium Casino Platform with Trusted Licensing, Instant Crypto Withdrawals, and Elite Gaming

bychainwire
29 May 2025
0

Reddio’s Exclusive Token Generation Event (TGE) and Alpha Trading on Binance Wallet – May 29, 2025

bychainwire
29 May 2025
0

Weed Launches Global Well-Being Platform Powered by AI

bychainwire
28 May 2025
0

Cache Wallet Begins Token Sale with Early Demand and Asset Recovery Breakthrough

bychainwire
27 May 2025
0

Read More

ADVERTISING

ABOUT

TEAM

CAREERS

CONTACT

TERMS & CONDITIONS

PRIVACY POLICY

© Copyright 2025 DeFi Planet

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

No Result
View All Result
  • News
    • People
    • Business
    • Crime
    • Regulation
    • Crypto
    • CBDC
  • Markets
    • Bitcoin
    • Ethereum
    • Stablecoins
    • Altcoins
    • Crypto ETFs
    • Memecoins
  • Policy
  • Articles
    • Press Releases
    • Opinion
    • Explainers
    • Guest Post
    • Sponsored
  • Directory
    • Companies
    • People
    • Products
    • Wallets
  • Multimedia
    • Videos
    • Podcasts
  • Learn
    • DeFi Basics
    • Tutorials
    • Reviews
    • Blockchain Fundamentals
  • Research
    • Case Studies
  • Explore
    • DeFi
    • Crypto Gaming
    • NFT
    • DAO
    • Metaverses
  • Jobs
  • Markets Pro
    • DeFi Planet Pro
    • Spend Crypto
    • Swap Crypto
    • Coin Prices
    • Crypto Exchanges
    • Crypto Analyzer

© Copyright 2024 DeFi Planet   |   Terms & Conditions   |   Privacy Policy

-
00:00
00:00

Queue

Update Required Flash plugin
-
00:00
00:00