AFRICA: Nigeria. Kenya: To make it easier for Nigerians to use eNaira, plans are in the works to introduce and adopt the Unstructured Supplementary Service Data (USSD) code, which will allow individuals without cellphones to do transactions quickly, the Central Bank of Nigeria (CBN) has assured.
Kingsley Obiora, the CBN deputy governor, stated during a virtual programme organised by the International Monetary Fund (IMF) African Department Speakers Series, titled ‘Central Bank Digital Currency and Private Digital Payments in Kenya and Nigeria: Challenges and Opportunities for Sub-Saharan Africa,’ that introducing USSD code will make a significant improvement in the activities of eNaira because it will provide access to all and sundry in society.
Many people may not have access to cellphones, but having the USSD code will help to solve this problem and allow them to transact.
“Once we can introduce the USSD code, you don’t need a smartphone to join the eNaira platform you can join by putting in your Bank Verification Number (BVN),” Obiora noted.
“We have made serious progress in the last seven to eight years because when the current CBN governor Godwin Emefiele assumed office in 2014, his vision was to significantly improve financial inclusion,” Obiora said.
As a result, Obiora believes that if all of the goals and policies in place are examined, Nigerians will own 70% of the financial system.
This indicates that 30% of the Nigerian population remains unbanked, and CBDC will undoubtedly help to reduce this ratio.
Benefits of eNaira
However, according to Obiora, some of the possible benefits of the eNaira currency include financial inclusion, a reduction in the cost of cash processing, increased company efficiency, and economic growth. Improvements in tax collection and cross-border trade are among the others.
The danger of eNaira
“Some dangers accompanying the platforms are the fall of the banking sector, cyber security risk, non-stop service, internet failure and financial education,” Obiora has emphasized.
Also Read: 2023 ELECTION: 24 Political Thugs Arrested as IGP Establishes Electoral Offense Desk