E-Naira: Simplifying financial inclusion for downtrodden

e-Naira

When President Muhammadu Buhari came to power in 2015, he made it clear from day one that fixing the economy was one of the three key responsibilities he would prioritise. He meant expanding it to accommodate more local and foreign investments to create jobs and reduce poverty.

While building and fixing infrastructure like rail lines, roads, bridges, plants, factories, airports, refineries etc., hoping to solve the problem of poverty in the long run, the President and his team thought about how to deal with the situation.

Poverty is in different grades and classes. There are millions of Nigerians whose poverty is at an extreme level and who can barely feed at all and this kind of situation can’t wait for the long term investments in infrastructure and macro-economic policies to begin to yield fruits.  

The government therefore came up with the Social Intervention Programmes (SIPs) like Conditional Cash Transfer (CCT), Trader Money, Market Money, N-Power and the likes to cater for poor and jobless Nigerians, so they know that the country has not abandoned them.

Despite the efforts, the World Poverty Clock turned in 2018 and Nigeria became the capital with over 100 million of its population said to be living below the poverty line. The situation is now being brought under control by more comprehensive measures taken by the federal government.

Read Also: E-naira wallet will address scarcity of cash-Emefele’s aide

As part of measures to simplify financial inclusion for disadvantaged citizens, President Buhari launched the e-Naira last October. The multi-dimensional digital currency operates as a better alternative to the physical currency. CBN Governor, Godwin Emefiele called it a stress-free medium of exchange

The e-Naira has demonstrated incredible capacity to do all things and solve all problems at micro and macro levels. The easy-to-use platform enhances payment of bills, airtime recharge, health insurance, tax collection, diaspora remittances etc.

The Ministry of Humanitarian Affairs, Disaster Management and Social Development has taken the advantage to simplify the process of reaching out to poor Nigerians with life-saving funds. The Permanent Secretary, Dr Sani Gwarzo gave Economic Confidential an insight.

Gwarzo revealed that the ministry, in collaboration with the CBN, registered about 1.9 million beneficiaries of social intervention schemes on the e-Naira platform. The ministry simply deemphasised giving cash to the beneficiaries and embraced internet banking.

“When the CBN approached us, we held a series of meetings. There were lots of back and forth but since we started, our experience has been good. Within a period of one month, we were able to register about 1.9 million of our beneficiaries on the e-Naira platform and will do more.

“We believe Nigerians are complaining about the cashless system because they have not fully embraced the e-Naira. But the time they do so, many will ask why didn’t the initiative come decades earlier.”

Gwarzo said the e-Naira is easier and cheaper to operate as there are no bank charges. Unlike commercial banks, there is no chance of depositors losing their monies since the CBN cannot fold up. Nigerians in the hinterlands, with no physical and internet banking infrastructure, are the biggest beneficiaries.

Corroborating the Permanent Secretary, Emefiele told journalists, after the recent Monetary Policy Committee (MPC) meeting, that part of the fundamental reasons for the e-Naira innovation was the need to get more poor people into the financial system.

“We have seen good progress in the adoption. We are happy that as we try to move more and more towards financial inclusion, and get people away from being excluded in the financial system, the e-Naira remains one of the very portable options for all to adopt.

“It has emerged as the payment channel of choice for financial inclusion and targeted social intervention programmes. The Ministry of Humanitarian Affairs therefore expressed interest in the e-Naira product and adopted it,” he said, confirming nearly four million wallets were created as of March 20.

“These wallets were created as part of plans for the next tranche of the conditional cash transfer programme by the second quarter of 2023. As Nigerians get used to the e-Naira and explore its features, more discoveries will be made on its usefulness and viability,” Emefiele added.

Abdulrahman Abdulraheem is an economic analyst [email protected]

Subscribe to our Newsletter

* indicates required

Intuit Mailchimp