IMF Offers to Help CBN Strengthen eNaira

Image

By Dipo Olowookere

The International Monetary Fund (IMF) has said it will offer technical assistance and policy advice to the Central Bank of Nigeria (CBN) on the digital Naira called eNaira launched by President Muhammadu Buhari in October 2021.

The eNaira was introduced by the apex bank last month under the Central Bank Digital Currency (CBDC) and it has received mixed feelings since its introduction.

Some hours after it was unveiled, it was pulled down from Google Play Store because of several negative reviews and poor ratings. However, it was restored after the issues were resolved.

In a post released on Tuesday by Mr Jack Ree of the IMF African Department, the global lender noted that the launch of the eNaira has attracted a “substantial interest from the outside world—including from central banks” because of the “size and complexity of Nigeria’s economy.”

Though the IMF said it has been “involved in the eNaira rollout process, including by providing reviews of the product design,” it will not hesitate to continue to be “available to help with technical assistance and policy advice.”

The organisation further said it would also like to offer help in the area of “data analysis, cross-country studies, sharing the eNaira experience with other countries, and discussing further evolution of the eNaira including its design, regulatory framework, and other aspects.”

In the note obtained by Business Post on Tuesday, the IMF said the eNaira is not without risks, which include “monetary policy implementation, cyber security, operational resilience, and financial integrity and stability.”

However, it stressed that the Nigerian authorities have taken “measures to manage the risks” as the transfer of funds from bank deposits to eNaira wallets is subject to daily transactions and balance limits to mitigate risks of diminishing the roles of banks and other financial institutions.

“Financial integrity risks, such as those arising from the potential use of the eNaira for monetary laundering, are mitigated by using a tiered identity verification system and applying more stringent controls to relatively less verified users.”

It was noted that the CBN came up with the idea of the eNaira boost financial inclusion so as to enable about 90 per cent of the population “to use the eNaira.”

The digital currency was also introduced to facilitate remittances as it will allow Nigerians diaspora to remit funds to Nigeria by obtaining eNaira from international money transfer operators and transferring them to recipients in Nigeria by wallet-to-wallet transfers free of charge.

The eNaira is also expected to bring greater transparency to informal payments and strengthen the tax base as informal and formal businesses may also benefit if eNaira adoption enhances consumption through greater financial inclusion.

Share
Related Stories
Image
17-March-2024

Naira Gains at Official Market, Maintains Stability at Black Market

By Adedapo Adesanya The Naira appreciated against the US Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Friday, March 15 by 0.4 per cent or N6.23 to close at N1,602.75/$1 compared with the previous day’s value of N1,608.98/$1. It also improved its value against the Pound Sterling in the official market by N11.51 to sell at N2,066.33/£1 compared with the preceding session’s N2,054.82/£1 and against the Euro, it calked up N12.04 to quote at N1,751.58/€1 versus Thursday’s rate of N1,766.62/€1. The value of foreign exchange (FX) trades during the session went down by $106.22 million or 43.6 per

Image
15-March-2024

Naira Appreciates to N1,608/$1 at NAFEM, N1,605/$1 at Parallel Market

By Adedapo Adesanya The Naira appreciated against the United States Dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Thursday by 0.4 per cent or N6.96 to close at N1,608.98/$1 versus Wednesday’s closing rate of N1,615.94/$1. However, it performed badly against the British Pound Sterling during the session by N30.27 to trade at N2,066.33/£1 compared with the midweek’s value of N2,036.06/£1, and against the Euro, the Nigerian currency depreciated by N26.08 to settle at N1,766.62/€1 versus the N1,740.54/€1 it traded a day earlier. During the trading day, the value of foreign exchange (FX) transactions slightly went down by 2.1

Image
18-March-2024

Tinubu Raises NNPC Contract Approval Threshold to $10m

By Adedapo Adesanya President Bola Tinubu has raised the contract approval threshold for the Nigerian National Petroleum Company (NNPC) Limited to a minimum of $10 million or its equivalent in Naira. In an executive order issued in Abuja, the President also directed that the approval period for every of the contract stages should not exceed 15 days. The order also directed that the duration for third-party contracts awarded under the production sharing contract (PSC) or Joint Operating Agreement (JOA) be increased to five years from three years, with the option of an additional two years renewal, thereafter. President Tinubu lamented

Image
18-March-2024

Court Orders Binance to Give EFCC Access to Nigerians’ Trading Data

By Adedapo Adesanya A Federal High Court in Abuja has ordered Binance Holdings Limited to provide the Economic and Financial Crimes Commission (EFCC) with the comprehensive data or information of all persons from Nigeria trading on its platform. Justice Emeka Nwite granted the interim order after ruling on the ex-parte motion moved by the EFCC’s lawyer, Mr Ekele Iheanacho, on Monday. “The applicant’s application dated and filed on February 29, 2024, is hereby granted as prayed,” the court held today. It also held, “That an order of this court is hereby made directing the operators of Binance to provide the

More Stories
Image
03-May-2023

FrieslandCampina, IGI Pull NASD Market Capitalisation Below N1trn

By Adedapo Adesanya The value of the NASD Over-the-Counter (OTC) Securities Exchange, which is measured by market capitalisation, finished below the N1 trillion psychological mark on Tuesday, May 2. This occurred after the duo of FrieslandCampina Wamco Nigeria Plc and Industrial and General Insurance (IGI) Plc weakened the unlisted securities market by 1.00 per cent at the close of transactions. The market capitalisation of the bourse ended the trading session at N999.99 billion compared with the previous trading session’s value of N1.010, according to data obtained by Business Post. FrieslandCampina lost N5.42 yesterday to quote at N74.00 per unit compared with

Image
27-June-2017

‘Fuji House of Commotion’ Actor Victor Eze Dies

By Dipo Olowookere Darkness has again engulfed the Nigerian film industry as another actor known as Victor Eze, has been reported dead. Mr Eze was a prominent face in the comic drama series, ‘Fuji House of Commotion’, where he played the role of Alika. During his lifetime, the actor was a respected stage actor and dancer. He acted in some flicks and partook in several dance productions and stage plays, both within and outside Lagos. Mr Eze was said to have succumbed to an undisclosed illness. His death comes barely two months after an actress in the industry, Moji Olaiya,

Image
08-September-2022

Firm Opens Second Document Archiving Warehouse in Nigeria

By Aduragbemi Omiyale End-to-end document management and secured software solutions provider, Secured Records Management Solutions (SRMS), has opened its second document archiving warehouse in Nigeria. The warehouse, which is located in Abuja, is positioned to improve its operations and deliver efficient services to customers in the region, the firm stated. The new warehouse is equipped with automated inventory software, built to safeguard documents, ensure compliance, and the productivity of workers. The warehouse is designed to store 34,000 boxes of documents, with a fire suppression system, live CCTV surveillance, and experienced personnel. The commissioning of the 700-square feet, state-of-the-art warehouse follows

Image
15-September-2022

Possible Economic Outcomes Post Queen Elizabeth II

By FBNQuest Research As the world mourns the loss of Queen Elizabeth II, it is believed that her passing could have implications traversing the economy and politics, especially at a time when the United Kingdom’s economy is battling an energy crunch and is on the brink of a recession. On the political front, this comes only days after Britain’s new prime minister, Elizabeth (Liz) Truss was appointed by the Queen herself – her last act of public service, and amid geo-political tensions in Europe. Although it is widely circulated that the period leading up to her funeral will be marked

Image
14-January-2021

30% of Private School Owners in Nigeria Bankrupt—NAPPS

By Ahmed Rahma A day after the United Nations Children’s Fund (UNICEF) declared that schools were not drivers of the pandemic, the National Association of Proprietors of Private Schools (NAPPS) has called on the federal governments to reopen schools. During the virtual meeting with stakeholders and journalists on Thursday, the association said the consequence of shutting schools down was more grievous than the effects of the deadly virus. While lamenting the effect of the school closure on owners, the association said no fewer than 30 per cent of its members went bankrupt with some putting up their schools for sale.

Image
28-June-2018

Lifesaving Reasons Why You Should Eat Dinner Early

By Adeniyi Ogunfowoke Eating dinner early and hitting your bed soon to get decent hours of sleep will prevent overeating at night. It is believed that late night dinner is linked to obesity. When you eat an early dinner, it will help to lose weight rapidly as you would know what you are eating and the amount of calorie intake. Hence, Jumia Food, Nigeria’s no.1 food ordering platform, identifies health benefits of early dinner. Weight control If you want to keep your weight under control, it is best to have an early dinner. You can eat what you like, even if

Image
29-January-2021

NSE to Suspend Trading on LASACO Assurance Shares

By Dipo Olowookere Trading on the shares of LASACO Assurance Plc will be suspended for two weeks from next week by the Nigerian Stock Exchange (NSE). This action is being taken as part of the process leading to the share reconstruction of the company, which was approved by shareholders of the organisation in 2019. On Tuesday, October 8, 2019, at the Annual General Meeting (AGM) of LASACO Assurance, shareholders authorised the board to carry out the exercise. After the approval from investors, the board approached the relevant regulatory agencies for approval to reconstruct its issued and fully paid-up share capital

Image
19-April-2017

Review: How UBA Emerged Best Performing Banking Stock

**What Analysts Say United Bank for Africa (UBA) Plc is on the top list of companies with well-rounded performance. UBA’s top-of-the-chart performance at the stock market combines with considerable growth in all key fundamental indicators to make the bank the best performing banking stock in recent period. Capital Market Editor, Taofik Salako, in this report, reviews the interplay of fundamental earnings and share price appreciation United Bank for Africa (UBA) Plc outperformed all banking stocks in the first quarter of 2017 with a share price appreciation of 28.22 percent. It had recorded the second highest price gain of 33.1 percent

Ad
Ad
Recent Stories
Image
19-March-2024

Brent Jumps to $86 Per Barrel on Low Crude Exports, Stronger Demand

By Adedapo Adesanya  The price of the international crude benchmark, Brent Crude, rose by 88 cents or 1.0 per cent to $86.22 per barrel on Monday, triggered by lower crude exports from Iraq and Saudi Arabia and signs of stronger demand and economic growth in China and the US. Also, the US West Texas Intermediate (WTI) crude appreciated by $1.01 or 1.3 per cent to $82.05 per barrel, as Iraq, the second-largest producer in the Organisation of the Petroleum Exporting Countries (OPEC), said it would reduce crude exports to 3.3 million barrels a day in the coming months to compensate

Image
18-March-2024

Cardoso Begins CBN Clean-up, Removes Directors Close to Emefiele

By Aduragbemi Omiyale There are strong indications that some directors at the Central Bank of Nigeria (CBN) may have to lose their jobs in the in-house clean-up exercise by the Governor, Mr Yemi Cardoso. Reports suggest that Mr Cardoso wants to let go of some directors who worked closely with Mr Godwin Emefiele, who President Bola Tinubu believes worked to stop him from going to Aso Rock. Recall that during his electioneering campaign, Mr Tinubu accused the former CBN chief and some persons of introducing the botched Naira redesign policy to frustrate him. Immediately after he assumed office on May

Image
18-March-2024

Profit-Taking Depletes Nigerian Exchange by 0.40%

By Dipo Olowookere The Nigerian Exchange (NGX) Limited succumbed to profit-taking on Monday, shedding 0.40 per cent despite a bullish investor sentiment. The local bourse ended with 27 price gainers and 18 price losers today, implying a positive market breadth index. The selling pressure was just investors booking profit after gains in the past few trading sessions, especially in MTN Nigeria, GTCO, Zenith Bank and others. The heaviest price depreciation was recorded by McNichols, 9.30 per cent, closing at N1.17, and was trailed by DAAR Communications, which shed 8.97 per cent to 71 Kobo. UPDC declined by 7.89 per cent

Image
18-March-2024

NCC Announces 90% Restoration of Voice, Data Services After Cable Cuts

By Adedapo Adesanya The Nigerian Communication Commission (NCC) has announced that voice and data services affected by undersea cable cuts last week have been 90 per cent restored. In a series of tweets signed by Mr Reuben Muoka, the Director of Public Affairs at the commission on Monday, March 18, the NCC said, “Following the disruption on March 14, 2024, which affected data and voice services due to cuts in undersea fibre optics along the coasts of Cote d’Ivoire and Senegal, we are pleased to announce that services have now been restored to approximately 90% of their peak utilization capacities.”

Image
18-March-2024

Unity Bank, SkillPaddy to Train Female Software Engineers

By Modupe Gbadeyanka At least 1,000 female software engineers will undergo a training programme organised by SkillPaddy through its Count Her In tech programme with support from Unity Bank Plc. The IT skill development and empowerment initiative is intended to bridge talent supply gaps while providing individuals with the opportunity to meet their training goals and launch careers in the tech industry. It was disclosed that about 40 young girls will receive full sponsorship from Unity Bank in the special training initiative which was conceived as part of activities to commemorate this year’s International Women’s Day 2024. All beneficiaries of

Image
18-March-2024

Your Moods Soundtracked With Spotify’s New Daylist Feature

Throughout the day, your mood changes, and so does the music you listen to. Last night might have been an island vibes riddim Monday night, while this moment is more of a nostalgic 2010s Tuesday afternoon. The point is, that you’re ever-changing, and your playlists should be too. Say hello to daylist, your day in a playlist. This new, one-of-a-kind playlist on Spotify ebbs and flows with unique vibes, bringing together the niche music you typically listen to during particular moments in the day or on specific days of the week. It updates frequently between sunrise and sunset with a

Image
18-March-2024

Stanbic IBTC Adopts Mala Kachallah Model School, Three Others

By Modupe Gbadeyanka Mala Kachallah Model School in Maiduguri, Borno State; Methodist School Mbiafun Nkwono Ikono, Akwa Ibom State; Aramoko District School, Aramoko Ekiti State; and Magin Rafi Model Primary School Tudun Wada, Sokoto State have been adopted by Stanbic IBTC Holdings Plc. The leading financial services provider in Nigeria revamped these citadels of learning under its Adopt-a-School programme structured on the company’s Social, Environmental, and Economic (SEE) framework, which aligns with its mission to be a responsible corporate citizen. It was learned that Stanbic IBTC renovated and rebuilt classroom blocks, provided modern and conducive learning environments, furnished classrooms, established

Image
18-March-2024

Nigeria’s Data Regulator Investigates Alleged NIMC Breach

By Adedapo Adesanya The Nigeria Data Protection Commission (NDPC) is investigating allegations of unauthorised access to the personal data of enrollees in the database of the National Identity Management Commission (NIMC). This was disclosed by Mr Vincent Olatunji, the National Commissioner of the data regulation body in a statement signed by Head of Legal, Enforcement and Regulations, NPDC, Mr Babatunde Bamigboye on Monday. He said the investigation is a further regulatory measure to be taken by the commission in the wake of public concerns over reports of illegal access, to the personal data of enrollees by a shadowy entity called

Image
18-March-2024

Russia Validates Partnership with Republic of Congo

By Kestér Kenn Klomegâh Over the years, Russia and the Republic of Congo have had good bilateral relations and, undoubtedly, there are still prospects for strengthening these relations, especially in the economy and security spheres as underlined during the meeting between Vladimir Putin and Denis Sassou-Nguesso in the Kremlin. “Our countries have always had friendly relations that have been developing this way for 55 years now. Our trade is growing – by over 60 per cent – although, unfortunately, the numbers in absolute terms are still modest. But, we have good potential in several industries, such as energy, the processing

Image
18-March-2024

2,250 Professionals for Interswitch Job Shadowing Programme

By Modupe Gbadeyanka An initiative known as Job Shadowing Programme designed to empower about 2,250 professionals through immersive training, tailored coaching, and mentorship sessions has been introduced by one of Africa’s leading integrated payments and digital commerce companies, Interswitch. A statement disclosed that the mentorship sessions would span diverse disciplines such as engineering, product management, operations, marketing, finance, and human resources. The firm explained that the scheme was designed to nurture emerging talent and enhance capabilities within the continent’s tech sector. Scheduled to run from March to June 2024, participants will immerse themselves in comprehensive training, gaining insights into industry