EGUNGWU CHUKWUKA BENJAMIN
The introduction of eNaira and cNGN stable coin (crypto currency) is a great concept to aid digital trading in Nigeria, but might not aid in stabilizing the Naira.
Nigeria is the first country in Africa to roll out a digital currency by the central bank.
Recall that the Central Bank of Nigeria (CBN) launched eNaira (a digital currency) on 25th October, 2021, with the intention of making transaction seamless and easier.
On 29th December, 2023, report emerged on national dailies, stating that Nigerian banks – Access bank, Sterling bank, First bank, Providus bank – were in collaboration with payments companies – like Budpay, Kora (formerly KoraPay), Interswitch, Blockchain consultants Convexity and Interstellar – to create a stable coin, cNGN.
This is after the federal government lifted the ban on cryptocurrency. Each was created to serve as legal tender, equivalent to the physical Naira (cash).
The introduction of cNGN coin was not to compete with eNaira but to serve as an alternative.
To get Nigerians to accept any of the mediums of payment, it will take time and requires sensitization, mostly focused on the youth and inhabitants of urban settlements. Illiteracy might be one of the factors that will militate against the concept.
National Youth Service: We all know the motive behind the establishment of NYSC, which is to bring unity and foster national integration.
Corps members are paid monthly stipends (allowee) via commercial banks. Why don’t they implement a policy of giving corps members only two choices of receiving this payment (eNaira and cNGN)?
This will make everyone who passes through the programme to get used of this means of transaction.
Although some might stop using it after the programme, there should be a way to make people embrace the medium, either by making transaction free of charges or lower charges, and also by introducing mouth-watering interest rates for different investment packages.
Higher Institutions: The banks and parties who brought the initiative can collaborate with tertiary institutions (federal, state and private) to introduce cNGN coin or eNaira debit card to serve as school ID cards.
The name of the institution, name of student and other necessary information needed for student identification can be engraved on the debit card.
Taxation: Making eNaira and cNGN coin the only platform for payment of government tax will aid the penetration of the policy and make more people, even the elites, embrace the use of the platform.
After the payment, a receipt will be generated on the app, a copy sent via mail with other necessary documents.
Transportation: The initiators of the ideas can collaborate with Ministry of Transportation and National Union of Road Transport Workers (NURTW) to make payment of transportation for inter-state travels digital.
Travellers will make their payment using eNaira card, cNGN debit card or transfer.
It might not work for intra-state transportation due to ‘stop and carry’.
Some drivers don’t even have conductors and also considering how hectic intra-state transportation can be. In Lagos, for example, the rush to beat traffic, passengers struggling to board a bus under the scorching sun can be stressful and will make everything disorganized.
The suggested steps above, if implemented, will go a long way in creating awareness of digital currency and aid its adoption by citizens, especially the educated and people living in the urban areas.
It will take years for people to trust the process because they have to see friends or family members using it and that it works perfectly well.
Egungwu Chukwuka Benjamin, is a freelance journalist/blogger, writes from Lagos.
NB: This article was originally published in The Champion and Independent Newspaper on 18th February, 2024.
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