e-Payment Transaction Failures: Where Is e-Naira's Place?

eNaira is a Central Bank digital currency (CBDC) backed by law reflecting the full sovereignty of Nigeria and issued only by the Central Bank of Nigeria as a legal tender.

It is the digital form of the Naira and is used just like cash.

The eNaira wallet is a digital storage that holds the eNaira. The eNaira wallet is required to access, hold and use eNaira. 

Amongst other benefits, the following are the most commonly known benefits of the eNaira:

• Fast, cheap, reliable, and available payment channels.
• Support digital economy.
• Improved economic activities.
• Simplified and easy cross-border payments and trade.
• Inclusion of excluded people in the financial system.
• Improved effectiveness of monetary policies.

However, with all these beautiful benefits of the eNaira in the face of untold hardships suffered by Nigerians in the past weeks due to the CBN's cashless policy, one is bound to ask the question, "Where is the place of the eNaira in today's cashless Nigeria?"

There is no doubting the fact that the naira redesign policy of the Central Bank of Nigeria (CBN), which caused the unintended consequence of naira scarcity, was not meant to punish Nigerians.

It sought to mop up excess cash in the system, bring down inflation, reduce criminality, and advance the movement into a fully cashless economy.

The apex bank has ensured there were viable alternatives that could be used before introducing the policy.

There is internet banking via apps, USSD for money transfers and other payments, and the e-Naira introduced recently as a store of value equal to physical cash.

When President Muhammadu Buhari launched the Central Bank Digital Currency (CBDC) in October 2021, making Nigeria the first on the continent to implement it, he stated that it was a new dawn for the monetary side of the economy.

In his remarks during the rollout, CBN Governor Godwin Emefiele stressed that the e-Naira would not only revolutionize transactions but also provide citizens with more efficient, cheaper, and easier means of doing business.

Since the unveiling, according to Economic Confidential, millions of Nigerians who use the platform have been testifying to its vibrancy.

They have seen how the e-Naira makes sending, receiving money, and payment of bills seamless, commending the idea which has eradicated intermediaries.

The platform is cheaper because there are no financial institutions to pay charges to.

The absence of banks also eradicates the possibility of depositors losing their monies in case any bank crashes.

This is because CBN is the one keeping the money on the e-Naira and therefore can never crash.

Indeed, the non-experience of problems associated with conventional internet banking has drawn the attention of many to e-Naira.

This is not surprising; no one enjoys either the frustration of poor network service or the stress of going to the bank to complain about unsuccessful credits or debits.

Transactions are possible in multiple methods. You can scan to pay; you can use your wallet ID when you onboard and have your e-Naira 10-digit number.

And of course, you can use USSD strength. It is available for everyone with a mobile phone, it doesn’t have to be a smartphone or any data phone.

It is obvious that the currency has limitless opportunities for a lot of great things.

And with the way the CBN is working round the clock to expand the e-Naira and encouraging Nigerians to come up with different initiatives, the coming months promise to be interesting for Nigerians already on the platform.

Conclusion

If all of the above benefits and features of the eNaira are this worthwhile, then Nigerians should not be suffering as presently seen.

There appears yet something fundamentally wrong in implementations as always.

This is another clarion call to the CBN's governor, Godwin Emefiele, and other stakeholders to put heads together and get Nigerians out of these cash logjams as soon as possible.