Download Enaira Wallet App

The number of eNaira wallets has jumped more than 12-fold to 13 million since October, and the value of transactions has climbed 63% to 22 billion naira ($48 million) this year, Godwin Emefiele, governor of the Central Bank of Nigeria, told reporters at a press conference. The CBDC was introduced in October 2021.

A big fear around crypto is its popularity with criminals. The CBN has taken steps to ensure that financial crimes cannot be committed using the eNaira, which they have outlined thoroughly in a regulatory guidelines release. For the end user, the most important idea is the hierarchical ranking of wallet users into different tiers, corresponding to the nature of the customer and their level of authentication provided. Each tier has certain balance and transaction limitations to prevent abuse of the system. In addition, every user, upon creating a wallet, will need to provide personal credentials. While higher tiers offer more freedom, they are also required to provide additional information. This, along with the nature of cryptocurrency ledgers, makes every single transaction traceable and ensures that money cannot be laundered using the new system to avoid taxation.

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One way the Central Bank intends to do this is to allow feature phones to hold eNaira wallets and allow them make transactions on those devices without the need for an internet connection, the same way the USSD framework works. I am also aware the Central Bank is in talks with telcos to allow them make eNaira wallets run on smartphones without the need for data. What this means is that regardless of whether you have data or not, you can still make transactions via your digital wallet. I believe this is a step in the right direction. For these reasons I personally believe the eNaira is a step in the right direction.

While I believe Patricia probably has plans in place to build an eNaira wallet to facilitate payments already, the fact that wallet-to-wallet transactions are largely free just makes it all the more undesirable to want to play it big in this space.

Since October 2022, the number of e-Naira wallets has reportedly increased more than 12-fold to 13 million. There has also been a 63% increase to N22 billion (US$48 million) in the value of transactions so far in 2023, thanks to the currency crisis earlier in the year.

Training: The idea is that financial institutions would give users access to central bank digital currency wallets while the central bank oversees the ledger and manages the system. It is, however, reported that banks and financial institution staff do not appear well trained to get users on board. So the system is not fully ready for adoption.

Prevention of financial crimes: A tiered mechanism is in place for the issuance of eNaira wallet, depending on the level of identification documentation users provide. Each tier has certain balance and transaction limits to prevent abuse of the system.

In March, the Central Bank of Nigeria unveiled plans to assist local farmers with loans for farm tools using the eNaira digital wallet. Additionally, other government aid programs have recently been driving the adoption of the central bank digital currency (CBDC), but these might require users to provide more identity information in the future. Most Nigerians have adopted the most basic eWallet plans, which limit daily transactions and the amount of currency that can be held.

According to Central Bank Governor Godwin Emiefele, some four million wallets have been created in anticipation of social intervention payments, around 30% of the total. The question is whether future conditional cash transfer programs will continue encouraging adoption.

Nigeria has a fairly young population with relatively high levels of financial inclusion, so one might expect an eNaira to be appealing. But to ensure its sustained and increased use in the future, the government might need to push users into higher tiers, as current limits on Tier 0 accounts could prevent Nigerians from taking full advantage of the digital wallets.

Banked customer onboardingeNaira Wallet cash-in/cash-outeNaira wallet to eNaira wallet transfer (P2P, P2B)Core Banking integration v1 - for Account to eNaira Wallet

Since becoming the first African nation and one of only a handful worldwide to launch a CBDC, eNaira usage has not been as widespread as the Central Bank of Nigeria (CBN) had expected. In July, CBN Governor Godwin Emefiele said that only around 700,000 people had opened an eNaira wallet despite there being around 55 million bank accounts in the country.

Although an upgrade in May allowed Nigerians to pay their bills with eNaira, for everyday commerce, the fact that both the merchant and the customer needed to have the eNaira speed wallet app created a barrier to mainstream acceptance.

As in many countries, Nigeria has established payment norms and consumer preferences that are unlikely to change merely by the arrival of an alternative. For example, MTN Nigeria reported earlier this year that within two months of launching a mobile money solution, 4.2 million wallets had been opened, proving the high preference for mobile money over the eNaira.

Using the *997# short code, Nigerians without a bank account or a smartphone are now able to create an eNaira wallet, paving the way for mobile money wallet providers like MTN and OPay to start integrating CBDCs into their offering and grow their eNaira transaction volumes.

However, it is critical to balance the individual's privacy rights (ensure the anonymity of transactions) against the public interest functions of the CBN. For example, users' identity, transaction data, value and history could be accessible to the CBN and intermediaries other than those chosen by the user. Identification and authentication can pose additional privacy risks because of their central role in onboarding users to the eNaira wallet and ensuring equal access for all users to meet the financial inclusion aspiration of the CBN.

Under the CBN's Circular and Guideline [PDF] on the eNaira issued on 25 October, the national identity number (NIN) and/or biometric verification number (BVN) are the unique identifiers for users to "self-onboard" to the eNaira speed wallet. Even users subject to tier 0 (wallets with a daily transaction limit of N20,000 and balance limit of N120,000) must meet KYC requirements, including the provision of passport photograph, personal information, name, place, and date of birth, gender, and address and telephone number.

Concerning privacy, the CBN eNaira Guideline provides that two-factor authentication and other measures should ensure the security of the eNaira wallet. It further provides that "the eNaira shall be administered by the CBN through the Digital Currency Management System (DCMS) to mint and issue eNaira."

What is an eNaira wallet?

The eNaira wallet is a digital storage that holds the eNaira. It is held and managed on a distributed ledger.

The eNaira wallet is required to access, hold and use eNaira.

In a typical transaction, what is the difference between an online bank transaction and eNaira wallet?

There are intermediaries for the typical online bank transactions, whereas for eNaira transactions, there are no intermediaries.

How do I connect my eNaira wallet to my bank account?

The eNaira app allows customers to identify a bank of their choice, connect to their bank accounts and perform transactions.

The government should continue to work with private banks to encourage their customers to transition from a mobile payment transfer system to an eNaira wallet. In addition, the Speed Wallet needs to be further developed to facilitate diaspora remittances. The ability to send money directly from foreign to Nigerian bank accounts would encourage more Nigerians to use eNaira. The central bank should also focus on integrating the Speed Wallet and personal banking, so that users could load their Speed Wallet with eNaira without accessing their personal banking app. Having to switch between two apps is the most tedious part of using eNaira so fixing this would make the app more user friendly.

Increase in financial inclusion. Initially, the eNaira wallet was provided only to people with bank accounts, but coverage was expanded in August 2022 to anyone with a mobile phone even if they did not have a bank account. Many people in Nigeria do not have bank accounts (38 million people; 36 percent of the adult population). Yet, cellphone penetration in Africa is among the highest in the world. Nigeria reckoned that providing eNaira access to those with phones and no bank accounts could increase financial inclusion and facilitate more direct and effective implementation of social transfers programs.

As indicated by the levels of wallet downloads and transactions, the public adoption of the eNaira thus far has been disappointingly low. However, it would be still too early to judge the fate of the eNaira project:

What is CBN doing to move the eNaira project ahead? While digesting takeaways from the initial phase, CBN has moved to phase 2 of the project, expanding the eNaira coverage to (1) people without bank account (but with mobile phones and KYC) and (2) those without internet access (through USSD technology30). People without bank accounts may open an eNaira wallet by providing their national ID number (NIN), and load eNaira balance through cash-in services provided by the agency banking network, moving mobile money, or receiving the eNaira from a third party. CBN has intensified the eNaira public adoption campaign, by actively promoting its usage by (1) encouraging major supermarkets and hotels to participate in its merchant network, (2) providing stipend to CBN staff through the eNaira, and (3) hosting developer Heckathons for promotion and discovery of eNaira use cases. While the expansion of the usage of the eNaira31 for remittances are unlikely to happen in the near term, consideration is being given to its modalities. e24fc04721