What is eNaira?

As cryptocurrencies such as Bitcoin and Ethereum have grown in popularity, governments throughout the world have begun to contemplate developing their own digital currencies. Nigeria is no exception. The Central Bank of Nigeria (CBN) has created its own digital currency, the eNaira. The new currency will not be a replacement for the actual Naira, but rather a digital representation of it.

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However, because the eNaira is not a cryptocurrency, it cannot be exchanged in the same way as cryptos. The eNaira is the same as a real currency, except it is in digital form and may only be used for payment transactions.

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At the launch, CBN Governor Godwin Emefiele said that Nigerians are really enthused about the eNaira and that transactions are already taking place. He also stated that security procedures are in place to secure digital currencies. With the launch of the eNaira platform on Monday, Nigerians and other residents in Nigeria who want to transact business or make payments in eNaira may now download the eNaira Speed Wallet App on iOS or Google play store and be able to perform the following tasks:

• Onboard and create their wallet

• Fund their eNaira wallet from their bank accounts

• Transfer eNaira from their wallet to another wallet

• Make payment for purchases at registered merchant locations

• Prospective users can also approach their banks for support or any of the eNaira accredited vendors.

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The framework’s transaction limit has also been imposed by the apex bank. For example, under the Tier 0 category or with a phone number that does not have a confirmed National Identity Number (NIN), the daily transaction limit is N20,000, with a balance or e-wallet limit of N120,000.

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The daily transaction for the Tier 1 category with confirmed NIN is N50,000, with a balance of N300,000 in the e-Naira wallet. Tier 2 users may conduct N200,000 in daily transactions and have an N500,000 e-wallet balance, while Tier 3 users can do N1 million in daily transactions and have an N5 million e-wallet balance.

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The CBN Governor said that 33 banks have integrated into trading in digital currency, for which the CBN has created N500 million and remitted N200 million to the banks. According to Emefiele, there has been an incredible interest and positive reaction from Nigerians and other parties across the world since the eNaira platform went online, with over 2.5 million daily visitors to the website.