E-Naira Can Help Curb Spread Of Counterfeit Banknotes, Says CBN

Central Bank of Nigeria (CBN) said Nigeria can curb the spread of counterfeit banknotes by using the e-Naira which ensures seamless transactions and a high level of security as it operates on robust blockchain technology.

During the e-Naira campaign at Federal Polytechnic (FedPoly) located in Bauchi, Haladu Andaza, who serves as Controller of CBN Bauchi Branch, explained the importance of using eNaira to the students and management of higher institutions.

"Representing a remarkable leap forward in how we interact with money, it is tailor-made to meet the needs of our vibrant and dynamic community," Andaza said on Thursday, TheGuardian reported. "One of the primary advantages of e-Naira lies in its unparalleled convenience."

He went on to explain that with the help of eNaira, Nigerians can swiftly make payments without relying on physical cash or traditional payment cards, adding that this is a seamless way to make transactions.

"This advanced technology makes it incredibly challenging to counterfeit or compromise the currency, providing peace of mind to both users and businesses," he added. "By adopting e-Naira, we bolster the integrity and trustworthiness of our financial ecosystem."

The branch controller further noted that the use of eNaira has opened doors for those who may have never been a part of the formal financial system as it grants them an "ability to engage in digital transactions and experience the benefits of financial empowerment."

Rector of FedPoly Bauchi, Alhaji Sani Usman welcomed CBN's campaign to educate the students as well as the management about the digital currency in the country.

eNaira was launched on Oct. 25, 2021, at the state house in Abuja by the president. It was expected to work as a digital form of the national currency, Naira, that is issued by the Central Bank of Nigeria.

After launching eNaira, the government announced a currency redesign policy in which three denominations were redesigned out of eight including N200, N500, and N1000. The new notes were launched on Nov. 23, 2022.

However, the currency redesign policy mopped up over 70% of cash in the country and caused the country an estimated loss of N20 trillion. World Bank shared in April that the Nigerian currency naira lost 10.2% of its value.

Airtel Africa shared its financial statement report on Thursday, revealing that the company made a loss in the first quarter of 2023 while mentioning the core reason being the currency devaluation.

"This quarter saw the announcement of the change to the FX market in Nigeria which resulted in a significant naira devaluation," Airtel Africa's CEO, Olusegun Ogunsanya said, TechCabal reported.

Last week, The International Monetary Fund (IMF) disclosed that a 10% increase in US dollar value impacts emerging market economies like Nigeria, decreasing their output by 1.9%.