CBN’s New Guidelines on e-Naira Ahead of October 1st Launch

The central bank of Nigeria is set to launch a new digital currency termed e-Naira on October 1, 2021 and some significant steps are being taken already to ensure the aims and objectives of the new initiative are met.

One of such steps is the release of new guidelines on how the digital currency (e-Naira) will be designed, issued and regulated.

This new project by the Central Bank of Nigeria is expected to be a legal tender for the entire country, the digital currency will be accessible to both bank account holders and non account holders according to the CBN.

The Central Bank Digital Currency (CBDC) is set to be launched on October 1, 2021.

The new guidelines on digital currency by the Central Bank Of Nigeria focuses on two main things which are; ‘zero charges’ and ‘consumer wallet’.

Zero Charges

The CBN’s digital currency (e-Naira) has a non-interest bearing CBDC status. There also will be no charges on services like merchant services, user-to-end merchant and peer to peer wallet transactions.

According to the CBN, the zero charges also applies when money is sent from your wallet to a bank account and when you make withdrawals at agents or merchants locations, (POS).

From October 1st 2021, after the launch, banks will be able to invite all their customers to do their registration for the e-Naira with necessary verification processes and validation.

Customer Wallet

The customer wallet guideline according to the Central Bank of Nigeria, is a three-tier customer speed wallet system that will be issued by the CBN first, followed by banks and other licensed operators who can then provide their own wallets for the digital currency (e-Naira).

The tier one wallet is open to anyone without a bank account. It comes with a transfer limit of #50,000 fifty thousand naira, and a sum total balance of #300,000 three hundred thousand naira. The minimum requirement to open this account according to the CBN is the National Identity Number, (NIN).

The tier two wallet user will require an existing bank account with a linked Bank Verification Number as the minimum requirement. This tier user is restricted to sending and receiving #200,000 two hundred thousand naira daily and having a balance of #500,000 five hundred thousand naira.

As for the tier three wallet user, he/she can transact up to #1,000,000 one million naira daily with a cumulative balance of #5,000,000 five million naira. The least requirement for this tier according to the CBN is a Bank Verification Number (BVN).

Moreover, transaction limit for merchant-level wallets are also set at #1,000,000 one million naira.

However, there are no limits to how much users can have in their accounts.

It is worthy to note that the apex bank of Nigeria (CBN) has said that the digital currency system, being a national critical e-asset, will be subject to comprehensive and frequent security checks.

According to the Central Bank of Nigeria; “Nigerian banks are to market and promote the adoption of e-Naira as a digital version of cash to existing and potential customers, in support of the financial inclusion objective of the Central Bank of Nigeria”.