The Central Bank of Nigeria (CBN) has recently announced new features for its central bank digital currency (CBDC), known as the eNaira, aimed at enhancing the service offerings of the digital currency and further promoting its usage among the public.
Among the new features, the eNaira has been upgraded to support NFC technology, which is the same technology used by popular platforms like Apple Pay and Google Pay for contactless payments. Furthermore, the digital currency now facilitates peer-to-peer (P2P) transfers, enabling seamless transactions between users.
Additionally, the central bank has introduced enhanced programmability functions that allow users to set restrictions on payments, including utilization in government aid programs like farmer loans.
Despite the initial uncertainty caused by the ousting of CBN Governor, the apex bank remains steadfast in its efforts to promote the widespread adoption of the eNaira, its central bank digital currency (CBDC).
“The world is going digital and the CBN cannot afford to lag behind. So, when there’s a new technology, we embrace it,” said Joseph Angaye, deputy director of the central bank’s risk management department.
While retail and P2P payments were likely already feasible using QR codes, the integration of NFC contactless payments presents several advantages. It simplifies the adoption process for retail merchants, making it more convenient for them to accept eNaira payments.
Additionally, NFC technology offers a more user-friendly payment experience for consumers, promoting wider acceptance and usage.
Regarding feature phones that do not support NFC, there are reports suggesting that the central bank has introduced an NFC tag that can be attached to such devices. This tag may enable feature phone users to utilize the eNaira for payments, although its implementation and details have not been officially confirmed yet.
Mr. Angaye highlighted a crucial advancement in the CBDC’s capabilities stating that it can now be programmed to be spent in specific locations or on designated items.
“If we want to get funds across to farmers to acquire tools or for any other specific thing, we program it. They cannot divert the money transferred into their eNaira wallet to some other things,” the deputy director said.
According to the CBN’s ‘Guidelines on Contactless Payments in Nigeria,’ contactless payments through accounts or wallets in Nigeria will have a transaction limit of N15,000 and a daily cumulative limit of N50,000. This means that customers can make contactless payments of up to N15,000 (~$20) per transaction and up to N50,000 (~$65) per day without entering their PIN or biometric verification.
______________________________________
