eNaira is a disadvantage to banks – Says CBN Governor

Godwin Emfiele, the governor of the central bank, said that the eNaira currency hurts commercial banks, especially when depositors transfer funds from their bank accounts to their eNaira wallets.

When asked for an update on the performance of Africa’s first digital currency at the question-and-answer session that followed the monetary policy announcement on Tuesday, July 19, 2022, Godwin Emefiele made reference to this.

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The CBN Governor made the comment during what appeared to be a rowdy moment, and he took use of the occasion to discuss many steps being taken to encourage the adoption of the digital currency.

Mr. Emefiele acknowledged that the eNaira had fallen short of expectations and attributed some of this to the fact that many Nigerians were unaware of the product. He also indicated that the CBN intended to send some of its employees abroad to help with eNaira promotion.

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eNaira is a disadvantage to banks – Says CBN’s Godwin Emfiele

He poked fun at commercial banks in his remarks on the limited adoption of eNaira, suggesting that they might not want their clients to transfer money to their eNaira wallets because doing so would not be in their best interests.

“I want to advise you, You may go to your bank, they may be a little bit resistant to you because moving that money from your account into your wallet is a disadvantage to them and I want to say that boldly and bluntly. And again, it is almost costless at least today. So you should tell your bank you want your eNaira to be loaded up in your wallet. It will cost you little or nothing compared to those other products that you have that will cost you more.”

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“I will say very bluntly, I am a banker myself, there is apathy by them because they know they will lose some income, so you should insist on using your wallet to do your transactions.”

The comment seemed to be a dig at banks and fintech, which the governor now acknowledges are directly competing with the eNaira. The CBN is unmistakably promoting the eNaira as an inexpensive alternative for the unbanked to deposit their money as well as a more affordable means of conducting payment transactions.

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