The institution has pointed out that e-Naira wallets may be perceived, or even effectively function, as a deposit at the central bank, which may reduce demand for deposits in commercial banks.
IMF notes that Nigeria has applied measures to mitigate the risks as follows:
The transfer of funds from bank deposits to e-Naira wallets is subject to daily transactions and balance limits to mitigate risks of diminishing the roles of banks and other financial institutions
To prevent illicit activity such as money laundering, the e-Naira has implemented a tiered-identity verification system and applied more stringent controls to relatively less verified users.
For example, for now only people with a bank verification number can open a wallet, but over time, coverage will be expanded to people with registered SIM cards and to those with mobile phones but no ID numbers.
Under the verification system, low-tier categories of holders have tighter transactions and limits even though even the highest tier holders can not hold more than 5 million naira ($12, 200).
The IMF is ready to collaborate with Nigeria on:
Sharing the e-Naira experience with other countries
Discussing further evolution of the e-Naira including its design, regulatory framework, and other aspects