Key things every entrepreneur should know about eNaira

Since the official announcement and launch of the eNaira by President Muhammadu Buhari and CBN Governor, Godwin Emefiele, at the State House in Abuja on October 25, 2021, there have been several speculations about the new development.

In this blog post, we have broken down some of the most frequently asked questions about the eNaira and provided answers accordingly.

Here’s all you need to know about the eNaira.

What is eNaira?

eNaira is a central bank digital currency (CBDC) issued by the Central Bank of Nigeria as a legal tender. It is the digital form of the Naira and will be used just like cash.

What is eNaira Wallet?

The online platform where users will gain access, use and hold the eNaira.

The eNaira Wallet is therefore the digital storage that holds the eNaira.

How is eNaira Different from the Money in my Bank Account?

eNaira is the digital form of cash and is a direct liability of the Central Bank of Nigeria while the customer deposits are direct liabilities of the financial institutions.

Is the eNaira same as Cryptocurrency?

No, it isn’t. The eNaira is simply a digital currency that is equivalent to the physical cash

and accepted as a legal tender. It is targeted to provide digital stability and further reduce the need for physical cash.

What are the Benefits of eNaira?

The benefits of the eNaira are:

• Fast, cheap, reliable and available payment channel.
• To support the digital economy.
• Simplified and easy cross border payments and trade.
• Improved economic activities.
• Inclusion of excluded people in the financial system.
• Ease in tax remittance and collection to support the Country’s growth.
• Ease in targeted social interventions to support Nigerians.

Will eNaira Replace Cash?

No, it will circulate alongside cash. The eNaira will complement cash as a less costly, more efficient, generally accepted, safe, and trusted means of payment.

Is eNaira Safe?

eNaira is safe and secured with cryptographic techniques against counterfeiting, cloning, and other forms of attack.

Who Can Access eNaira?

Similar to cash, any person or business can have access to eNaira as long as they have the requirements for onboarding.

What Is The Exchange Rate Between eNaira And Physical Naira?

The eNaira will have the same value as the physical Naira. As such, it will be exchanged one to one. Therefore, N1 = 1 eNaira.

Why Should An Individual Download And Fund The eNaira Wallet?

• 99.9% service availability.
• Low charges.
• Nationwide acceptance
• No dispensing errors.
• Advanced data privacy and security.

Why Should a Business/Corporate Operate The eNaira Wallet?

• Instant settlement.
• 99.9% service availability and reliability.
• Low charges.
• No dispensing errors.
• No reconciliation issues.

How Do I Access eNaira?

Customers will be able to access eNaira via the eNaira wallet in app stores such as Google Play Store and the Apple App Store. Users can also dial a USSD short code and follow the required steps to perform transactions.

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.

How Do I Create a Merchant eNaira Wallet for My Business?

To create an eNaira wallet as a merchant/corporate, you will be required to follow the required steps:

• Visit app stores such as Google Play Store or Apple Store to download the eNaira wallet;
• Register by providing your Taxpayer Identification Number (TIN) and identify a bank of your choice for validation;
• Upon successful validation of a merchant’s details by a preferred bank, the merchant’s bank will create a wallet and advise the merchant

Are there transaction and balance limits?

Yes, there are transaction and balance limits for individual eNaira wallets.

Are there charges for using the eNaira platform?

The CBN announced that charges for transactions on the eNaira platform shall be free for the first 90 days commencing from October 25, 2021. Afterwards, charges would apply as outlined in the Guide to Charges by Banks, Other Financial and Non-bank Financial Institutions.

How Safe is eNaira Wallet?

Yes. The eNaira system uses a two-factor authentication system in addition to cryptographic encryption to ensure the safety of customers’ wallets and the eNaira holding.

How do I fund my eNaira wallet?

Funding of your eNaira wallet can be done through your regular bank app from your bank account and via cash through an eNaira verification agent, over the counter at a designated bank branch or a SANEF agent.

Does the eNaira yield any interest?

No. The eNaira has no interest component.

Are customer’s data protected?

Yes. Data protection and privacy remain fundamental to the core design of the eNaira system and users will be able to determine how their data is used, shared and processed.