The Central Bank of Nigeria is targeting a stronger digital economy to support the growth of the financial systems.
This is even as the digital currency, eNaira, records 190.1 per cent growth in transactions relative to its level when it was launched on October 25, 2021.
Speaking at the Central Bank of Nigeria Executive Seminar entitled “Digitalisation of Money and Monetary Policy in Nigeria” held in Abuja on Wednesday, Deputy Governor, Economic Policy, CBN, Dr Kingsley Obiora, said the volume of eNaira in circulation was N2.10bn, with 3,320 merchants successfully registered on the platform across the country, including Shoprite, Sahad Stores, A.A. Rano, among others.
The deputy governor said the CBN was primed to reach lofty heights in the adoption and integration of its digital currency in collaboration with the Federal Government and other relevant stakeholders, as it continued to unlock new phases and possibilities in facilitating reduction in cash processing costs and creating an efficient payment ecosystem in Nigeria.
He further said in addressing the issues associated with the digitalisation of money and monetary policy, the transmission of monetary policy had been aided by the growth of money supply, which signified the direction of liquidity and changes in price level.
He noted that the efficacy of the control of these important macroeconomic tools would determine the extent to which the growth in national output was going to impact the Nigerian economy.
“We must continue to improve on the rate of adoption of the eNaira, especially for the informal sector of the economy. Pooling all these factors together will strengthen the transmission mechanism of monetary policy, improve payments system and lead a more stable economy,” he noted.
The eNaira is a digital currency recently launched by the CBN to drive e-transactions in Africa’s most populous nation.
The keynote speaker, who was the CBN Governor, Mr Godwin Emefiele, said the apex bank had taken transformational steps in entrenching a culture of big data and data analytics as tools for effective policy-making.
“As regulators, we are mindful of the possibility that the new forms of innovative financial products or services could render some existing banking laws and regulations obsolete and potentially harm financial growth.”
He said this had necessitated new and revised guidelines, regulation and legislations to address potential infringement, alter private sector incentives and reorganise the market to promote competition and encourage new entrants.