Nigerians brace for CBN eNaira, expected to revolutionize Nigeria country’s payment system news

  • Unless there are last minute changes, the Nigerian digital currency, eNaira will become an acceptable legal tender in the country
  • Already, the site is online with reports 1 million hits in less than 24 hours
  • Nigeria to become the first African country with a digital currency equivalent with the paper ticket

The central bank The eNaira digital currency (CBDC) will be fully operational as legal tender in the country from October.

According to CBN, eNaira will function as the digital version of the Naira and will be used in the same way as physical currency.

However, many Nigerians still don’t know what to expect and how to participate. Here are all the answers to all your eNaira questions.

Source: Pius Utomi Ekpei / AFP via Getty Image
Source: Getty Images

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What makes eNaira different from money in my bank account?

eNaira in the coming months will serve as the digital equivalent of cash. Much like paper currency, CBN digital currency is a direct obligation of the Central Bank of Nigeria, while deposits are direct liabilities of financial institutions.

How will eNaira work?

Upon registration, users will be prompted to create a wallet ID. The eWallet will serve as a store that you can only access with a unique password from which you can execute transactions. It is crucial to note that no matter how long the money is held in the user’s wallet, it does not generate interest.

What is the difference between an online banking transaction and an eNaira wallet transaction in a typical transaction?

Online banking acts as an intermediary for conventional online banking transactions, but there is none for eNaira transactions, all you do is log in, access your wallet and complete the payment. Transactions between two users are free.

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In fact, there is no charge for withdrawals and deposits to and from users’ bank accounts.

How will dollar transfers to e-Naira work?

The e-Naira will be integrated into the CBN’s exchange process, making it easier to send money to Nigeria.

Simply, to send money abroad, the CBN directly credits the International Money Transfer Organization (IMTO).

Whereas for a Nigerian living in another country who wants to send say $ 50, to a family member. Just go to the bank and credit an IMTO, the issuing bank would then buy eNaira from its Nigerian equivalent bank. Immediately the $ 50 is quickly changed to e-Naira at a much cheaper transfer fee.

Will eNaira replace cash?

The CBN has repeatedly noted that eNaira will circulate alongside cash. It will also be a cheaper, more efficient, more secure and more reliable means of payment.

Is eNaira safe?

According to CBN, eNaira is safe and secure with cryptographic techniques against counterfeiting, cloning, and other forms of attack.

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CBN has also promised similar privacy to current online banking options.

The CBN statement reads as follows:

“The eNaira system was created with data and user privacy in mind. In addition, operational standards and procedures are in place to secure the identity and privacy of users.

Who can access eNaira?

As with cash, any person or company can have access to eNaira as long as they qualify for integration.

What is the exchange rate between eNaira and physical naira?

The eNaira will have the same value as the physical naira. As such, it will be exchanged one by one.

How to start

  • Get the ENaira app;
  • Enter the bank’s invitation code;
  • Fill in the required identity information (eg, NIN, BVN, or Know Your Customer (KYC) / Anti-Money Laundering Information (AML), depending on customer level);
  • Provide additional identity information (name, address, date of birth, phone number, photo ID, email address and password);
  • Minimum ID validation
  • Your banking institution is warning you;
  • Create a user account.

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For businesses, here’s what you need to do

  • The merchant installs the eNaira mobile application;
  • Enter and confirm the bank invitation code;
  • Enter the bare minimum of credentials (i.e., the full KYC as required by CBN AML / Counter-Funding (CFT) requirements.
  • Provide your tax identification number (TIN);
  • Once your TIN has been validated, add your other credentials (email, password, business category and company name).
  • The request is verified by a financial institution.
  • Creation and activation of an eNaira wallet;
  • Merchants and financial institutions are notified.

How much can you fund your account with?

For level 1 customers without an existing bank account

  • A national identity number (NIN) is required to open the account;
  • A daily transaction limit of 50,000 N is imposed;
  • A maximum cumulative daily balance of N 300,000 is allowed.

Level two clients

  • Opening an account requires a bank verification number (BVN);
  • A daily transaction limit of 200,000 N;
  • A maximum cumulative balance of 500,000 N.

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Level 3 customers with constant purchasing power

  • The minimum criterion for opening an account is BVN;
  • The daily transaction limit is 1,000,000 N;
  • the maximum cumulative balance is 5,000,000 N.

Then there is this for traders and businesses:

  • Full KYC as specified in CBN AML / CFT rules;
  • Daily transaction limit: 1,000,000 N;
  • The maximum cumulative balance is unlimited.

How to fund your wallet

You can fund your eNaira wallets by transferring money from your bank. The money is then sent to an eNaira verification agent / bank branch / CBN shared agent network extension facilities (SANEF), and the agent puts the cash equivalent into the customer’s eNaira wallet.

Final remark

The CBN informed Nigerians that eNaira would not replace currency, but instead would be exchanged for cash, complementing cash as a cheaper, more efficient, widely recognized, safe and trustworthy method of payment.

CBN sued for infringement

In a similar development, a Nigerian company sued CBN for the name eNaira, which another Nigerian, who has not yet been identified, wants N6.6m to sell a domain similar to the official domain.

The company in a notification sent to CBN by the injured owner of eNaira Payment Solutions and signed by Olakule Agbebi Esq for Olakule Agbebi & Co., it pointed out that the choice of eNaira constitutes an infringement of its rights.

Source: Legit

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About Matthew R. Dailey

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