Start Embracing Alternative Payment Channels, CBN Tells Nigerians

The Central Bank of Nigeria (CBN) has urged Nigerians to embrace alternative payment channels such as eNaira and internet banking, insisting that the Naira redesign policy was not targeted at any individual or group.

Speaking at the CBN Special day during the ongoing 44th Kaduna International Trade fair organized by the Kaduna Chambers of Commerce, Industry, Mines and Agriculture (KADCCIMA) with the theme: “Promoting Value Addition for Economic Growth and Development”,the Director Corporate Communications Department of the CBN, Mr. Osita Nwanisobi said that the CBN Governor, Mr. Godwin Emefiele, has always said the policy was not targeted at anyone or any group of persons.

“Rather, it derived from the Bank’s in-house analysis to strengthen our macroeconomic fundamentals and better our socio-economic conditions,” he said.

Mr. Nwanisobi who was represented by Mohammed Abbah, Director Capacity Development of the bank,said the principal aim of the Bank with the currency redesign initiative “is to make our monetary policy decisions more efficacious. Nigerians will observe that there has been a downward trend in inflation, and the exchange rates have been relatively stable.”

“Furthermore, we aim to increase financial inclusion in the country by reducing the number of the unbanked population. Thirdly, our aim is to support the efforts of our security agencies in combating banditry and ransom-taking in Nigeria through this programme.”

The CBN said it was not unmindful of the challenges some citizens had to face in the past few weeks in order to get money from their banks or other alternative channels,as there were reports of occasional transaction failures.

The bank however,assured that the Nigerian payment system infrastructure was robust enough to handle the transaction volumes across all channels.

“We, therefore, urge Nigerians to embrace alternative payment channels, such as eNaira and internet banking, as we embrace the cashless policy. The advantages of the currency redesign are overwhelmingly enormous and will benefit the economy in the long run,” he said.

According to him he, ” the theme of this year’s Fair is very apt given the fact that a major challenge emerging countries such as ours continue to face is ‘our inability to seamlessly integrate into the global trading system largely due to the quality and technological content of the goods and services we produce for export.”

“As you may be aware, the Central Bank of Nigeria (CBN), in line with its developmental function stipulated in the ACBN Act, 2007, as amended, has been at the vanguard of promoting quality export through its Produce, Add Value and Export (PAVE) concept, which aims to make Nigerians consume what they produce, add value to such products and export the surpluses.”

“The PAVE option of the CBN is similar to the export-led industrialization policy of South-East Asia, which transformed the economic fortunes of the Asian-Tigers-Hong Kong, Singapore, South Korea, and Taiwan. The concept designed to be key for fast-tracking a bucket of substitutes to crude oil export. PAVE encourages backward integration for the local production of select items. Through PAVE, we seek to create a proper linkage between agriculture and the manufacturing sectors of the Nigerian economy while also providing a cushion against the volatility in crude oil production and export.”

“In conceptualizing the PAVE, we looked forward to Nigerians returning to the .glory days of agriculture. I, therefore, urge entrepreneurs to ensure that their products and services are export-ready and can compete globally. Over the years, the CBN has also been involved in correcting identified structural challenges of the Nigerian economy. Specifically, we have focussed mainly on stimulating productivity in the manufacturing sector, strengthening domestic industries, transforming agriculture output to ensure self-sufficiency and shield the local economy from harmful external shocks.”

He said between 2015 and date, the CBN has released various sums to support intervention initiatives such as the Anchor Borrowers’ Programme (ABP), the Commercial Agriculture Credit Scheme (CACS), and the tertiary institutions entrepreneurship scheme (TIES).among others.

“Furthermore, the CBN, under the 100 for 100 Policy on Production and Productivity (PPP), has disbursed over N100 billion to 71 projects across healthcare, manufacturing, services and agricultural sectors. The Bank released N4.00 billion under the Intervention Facility for the National Gas Expansion Programme(IFNGEP) to promote the adoption of compressed natural gas (CNG) as the preferred fuel for transportation and liquefied petroleum gas (LPG) as the preferred cooking fuel. Under the Export Facilitation Initiative (EFI), the Bank funded export-oriented projects with the sum of N5.34 billion, bringing the cumulative disbursement under the intervention to N44.58 billion as at January 2023.”

“In the payments system sector, the CBN continues to seek creative ways to ensure that Nigeria takes full advantage of its opportunities and benefits. This led to the launch of the eNaira in October 2021 aimed at broadening the payment possibilities of Nigerians, foster digital financial inclusion, with potential for fast-tracking intergovernmental and social transfers.”

“Since its launch in 2021, we have continued to modified it features and have made it more accessible to wide range of users. Today, you do not need a smartphone to use the eNaira as it has become compatible with all generations of mobile devices ,old and new,” he said.

“Similarly, to further strengthen the payments system while conserving foreign exchange, the CBN collaborating with the Nigerian Inter-Bank Settlement System (NIBSS), recently launched the National Domestic Card Scheme, the first in Africa.”

“This is expected to lower operating costs for banks incurring huge charges for foreign card schemes. It will also reduce the huge foreign exchange commitments associated with operating foreign card schemes. On the recent redesign of some denominations of the Naira, I wish to reiterate that the move, which was graciously approved by President Muhammadu Buhari, was done in the overall interest of our country and the economy ,” he said