CBN Warns Business Owners Not to Reject e-Naira

By Tosin Olatokunbo

The Central Bank of Nigeria, CBN has directed business owners and merchants in the country to accept e-naira as a mode of payment.

The apex bank is set to launch the e-naira, also known as Central Bank Digital Currency, CBDC on October 1 amidst skepticism among Nigerians on whether the currency will be widely acceptable to a wide spectrum of the business establishment.

The Godwin Emefiele-led CBN had earlier said that the currency will stabilise the Naira and help to combat money laundering problems.

The government bank has therefore directed businesses in the country not to reject the CBDC for transactions.

The CBN Director, Payment System Management, Musa Jimoh, said this during an interview on the ‘Business Morning’ programme on Channels Television on Monday.

Jimoh said, “Today, anywhere you present naira to pay, compulsorily it must be accepted because that is our fiat currency. So, the same way naira is accepted that you can’t reject it, is the same way e-naira must be accepted.

“Anywhere in this country where e-naira is presented, it must be accepted. So, merchants must accept e-naira as a means of payment.”

He advised Nigerians to open e-naira wallets which could be downloaded on their phones from October 1, adding that CBN bears all liabilities.

“The liability of the e-naira money is directly on CBN which is similar to the cash you hold. The liability of the cash you hold today rests with the CBN. So, it gives Nigerians the opportunity to bank with CBN,” Jimoh said

On whether Nigeria was ripe for the e-naira due to the technological challenges in the country, Jimoh said he didn’t expect it to be a major problem.

Folashodun Shonubi, CBN Deputy Director, Operations had two weeks ago disclosed that the bank has put everything in place to ensure the smooth take off of the e-naira, adding that the bank will make sure that “e-Naira feeds our economy and provides greater value.

“The central bank digital currency offers all the benefits of cash but in digital form. Every single digital currency is an electronic version of the cash, the legal tender. When you make a cash payment, settlement is done instantly; digital currencies entail the same promises and even more.”

According to him, “CBDC offers a safer option from the privately issued cryptocurrency which have been based on the possibility to enable cheaper transactions but have now been used for investment.

“The intention is not to eliminate other forms of payment but to complement the current areas of payment options, thereby ensuring the stability of the payment system in the long run. I expect in the coming days we will see rapid inclusion rates.

“For banks in developing nations, it will enhance their liquidity, efficiency in national remittances and challenge the high cost of remittances as the world rebounds in the post-pandemic.

“I am of the view that the era of CBDC promotes greater opportunities, and the central bank must be aware of the risks and mitigate them,” he said.