The Central Bank of Nigeria (CBN) said eNaira can serve as an avenue for the government to send direct payments to citizens who are eligible for certain welfare programs.
The central bank revealed this in a document titled "Design Paper for the eNaira".
According to Apex Bank, eNaira will enable the government to make targeted social payments directly to citizens without the need for an intermediary.
The CBN recognizes that the pandemic has posed a significant challenge to the payment system around the world, particularly with regard to the distribution of welfare benefits.
He said: “The COVID-19 pandemic has tested the effectiveness of payment systems around the world and identified gaps, particularly in the mechanism for distributing social incentives. In some cases, due to the lack of transparency and adaptability of the existing payment infrastructure, cash has been redistributed to new and emerging ways of transferring value.
The central bank recognizes eNaira as a means by which the challenge of distributing money from the government to citizens can be effectively and efficiently addressed to ensure accountability.
“ENaira provides a clear way for the government to send direct payments to citizens eligible for certain welfare programs faster than other means. This will ensure accountability is maintained and the right people are getting the funds. If necessary, for example in times of economic crisis, the central bank can also act as a government agency and make eNaira transfers to affected individuals and companies, ”said the bank.
CBN added, “eNaira will enable governments to deliver targeted welfare payments directly to citizens without the need for an intermediary. This will reduce the cost of providing social benefits to citizens in need of social assistance and ensure that help is provided to the right people. "
This ability of eNaira to provide the government with a transparent process for transferring direct payments to citizens would be an added benefit in introducing eNaira in Nigeria.
The CBN previously said that one of the goals of eNaira is to create a secure and inexpensive process for sending money transfers into the country.
Apex Bank also said that eNaira would certainly improve its usability as Nigerians without internet-enabled phones could transact without subscribing to data or connecting a phone to the internet.
The central bank revealed this in a document titled "Design Paper for the eNaira".
According to Apex Bank, eNaira will enable the government to make targeted social payments directly to citizens without the need for an intermediary.
The CBN recognizes that the pandemic has posed a significant challenge to the payment system around the world, particularly with regard to the distribution of welfare benefits.
He said: “The COVID-19 pandemic has tested the effectiveness of payment systems around the world and identified gaps, particularly in the mechanism for distributing social incentives. In some cases, due to the lack of transparency and adaptability of the existing payment infrastructure, cash has been redistributed to new and emerging ways of transferring value.
The central bank recognizes eNaira as a means by which the challenge of distributing money from the government to citizens can be effectively and efficiently addressed to ensure accountability.
“ENaira provides a clear way for the government to send direct payments to citizens eligible for certain welfare programs faster than other means. This will ensure accountability is maintained and the right people are getting the funds. If necessary, for example in times of economic crisis, the central bank can also act as a government agency and make eNaira transfers to affected individuals and companies, ”said the bank.
CBN added, “eNaira will enable governments to deliver targeted welfare payments directly to citizens without the need for an intermediary. This will reduce the cost of providing social benefits to citizens in need of social assistance and ensure that help is provided to the right people. "
This ability of eNaira to provide the government with a transparent process for transferring direct payments to citizens would be an added benefit in introducing eNaira in Nigeria.
The CBN previously said that one of the goals of eNaira is to create a secure and inexpensive process for sending money transfers into the country.
Apex Bank also said that eNaira would certainly improve its usability as Nigerians without internet-enabled phones could transact without subscribing to data or connecting a phone to the internet.