Nigerian central bank introduces NFC technology to boost eNaira adoption -TGN

The Central Bank of Nigeria (CBN) remains committed to the central bank digital currency (CBDC) project, despite the recent impeachment of the former governor.

In an effort to further encourage adoption of the eNaira and improve the CBDC mobile app, the central bank has included Near Field Communication (NFC) technology, enabling convenient and contactless payments, according to arreport by local news outlet The Sun.

Previously, the eNaira mobile app used QR codes for transactions.

However, the CBN has now added NFC technology to enable seamless interaction between mobile devices and payment terminals.

Near-Field Communication (NFC) is a short-range wireless connectivity technology that uses magnetic field induction to enable communication between devices.

Speaking at an eNaira awareness workshop at the University of Abuja, Joseph Angaye, the deputy director of the CBN’s risk management department, stressed the importance of embracing new technology.

He said the upgrade is expected to play a vital role in increasing the adoption rate for the CBDC.

The eNaira app offers numerous benefits to users

Angaye claimed that the eNaira has evolved and added some useful features.

“There are many benefits of the eNaira app. The world is digitizing and the CBN cannot afford to be left behind. So when there’s a new technology, we embrace it,” he said.

In addition, the eNaira app offers several programmable features that increase its usability and functionality.

For example, it can be programmed for use within specific locations or for specific items, making it particularly suitable for carrying out intervention programmes.

Authorities can also ensure that resources are only allocated for their intended purposes, to prevent misuse or diversion.

Nigeria launched the eNaira in 2021, becoming one of the very first countries in the world to offer a CBDC.

However, initial adoption rates fell short of expectations, prompting the CBN to explore several strategies to drive adoption.

First, the central bank has introduced use cases in the transportation industry and integrated USSD functionality into the eNaira offering.

Despite these efforts, former CBN Governor Godwin Emefiele attributed the slow growth of the eNaira to commercial banks prioritizing their profitability over expanding the CBDC.

It is worth noting that the Central Bank of Nigeria had previously banned banks and financial institutions from facilitating digital currency transactions in 2021.

However, despite the ban, residents of Africa’s most populous country still make up the largest number of digital token transactions on peer-to-peer trading platforms outside the United States.