DistantNews
Support us
🇳🇬 Nigeria /Economy & Trade

FG may pay salaries through eNaira platform – Report

From The Punch · () English

Summarized and contextualized by DistantNews.

At a glance

News Documents & data New plan
  • The Nigerian Federal Government may soon pay salaries, pensions, and social welfare benefits using the eNaira digital currency.
  • This plan is part of the Central Bank of Nigeria's roadmap, Nigeria Payments System Vision 2028, to establish eNaira as a primary payment channel.
  • The eNaira, launched in 2021, aims to boost financial inclusion and reduce transaction costs, but adoption has been slow.

Nigeria's Federal Government is considering using the eNaira platform for salary, pension, and social welfare payments as part of a new strategy to boost the adoption of its digital currency. The Central Bank of Nigeria (CBN) outlined this vision in its Nigeria Payments System Vision 2028 document, aiming to transform the eNaira from a pilot project into a core payment rail for both government and private sector transactions.

Transition CBDC from pilot to core payment rail through defined use cases.

— Central Bank of NigeriaThe CBN stated its goal for the eNaira within the Nigeria Payments System Vision 2028.

Launched in October 2021 as Africa's first central bank digital currency, the eNaira was intended to enhance financial inclusion, lower transaction and remittance costs, and promote a cashless economy. However, its adoption rate has remained relatively low despite consistent regulatory support over the years.

The CBN's new roadmap includes revisiting the existing central bank digital currency (CBDC) framework to better align it with market demands and operational needs. The bank explicitly stated its intention to "Transition CBDC from pilot to core payment rail through defined use cases." Key domestic applications identified include government-to-person payments, payroll processing, offline payments, and support for micro-enterprises.

The ‘programmable money’ feature of digital currency could have additional features such as time-limits, purpose-specific usage, splitting payments, sub-wallets, etc.

— Central Bank of NigeriaThe CBN described the advanced functionalities of the eNaira.

Under this proposal, public sector disbursements like government salaries, pensions, and conditional cash transfers could be channeled through the eNaira. This initiative aims to accelerate adoption and improve the efficiency of payment systems. The document also highlights the "programmable money" features of the digital currency, which could enable advanced functionalities such as time-limited spending, purpose-specific payments, payment splitting, and sub-wallet creation. The CBN believes these features, along with the potential to strengthen financial market infrastructure, will make transactions faster and cheaper.

PSV2028 sets clear strategic priorities: modernising payments infrastructure, strengthening regulatory and supervisory frameworks, accelerating the adoption of digital financial services, and fostering deeper co

— Olayemi CardosoCBN Governor Olayemi Cardoso outlined the strategic goals of the Payments System Vision 2028.
DistantNews Editorial

Originally published by The Punch. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.

More Stories

From Our Blog