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Nigeria’s apex bank, the Central Bank of Nigeria (CBN), has said the eNaira can serve as a medium for the government to send direct payments to citizens eligible for specific welfare programmes.
The CBN which stated this in a document titled, “Design Paper for the eNaira,” noted that the digital currency will make it possible for government to make targeted welfare payments to citizens directly, without the need for any intermediary.
According to the apex bank, the pandemic exposed a significant challenge to the payment system globally particularly regarding welfare distribution.
“The COVID-19 pandemic tested the effectiveness of payment systems globally and highlighted gaps especially in the distribution mechanism of welfare incentives. In some instances, cash was distributed due to lack of visibility and adaptability of existing payment infrastructure to new and emerging modes of value transfer,” the document said.
“The Central Bank acknowledges the eNaira as a means by which the challenge of government’s monetary distribution to citizens can be effectively and efficiently addressed to ensure accountability is achieved…
