CBN to Use eNaira for Salaries and Welfare Payments

The Central Bank of Nigeria (CBN) is set to implement the eNaira for government salary, pension, and social welfare payments, as outlined in its Payment System Vision 2028 strategy. This initiative aims to enhance the eNaira ecosystem and promote financial inclusion while reducing transaction costs.

The eNaira, launched in October 2021, is Africa's first central bank digital currency (CBDC) and is designed to support Nigeria's transition to a cashless economy. Despite regulatory backing, adoption levels remain below expectations.

The CBN's strategy includes integrating eNaira into government disbursement programs, which is expected to improve payment efficiency and expand access to digital financial services, particularly for underserved populations. The CBN governor, Olayemi Cardoso, emphasized that the eNaira could play a significant role in the settlement system and enhance fund management.

The CBN also plans to explore bilateral CBDC corridors to facilitate cross-border transactions, further solidifying Nigeria's position in the global digital payment ecosystem.