CBN has planned to use eNaira for salaries, pensions and social welfare payments.
NewsOnline Nigeria reports that the Central Bank of Nigeria (CBN) is considering a major expansion of the eNaira ecosystem that could see salaries, pensions, social welfare benefits and other government payments processed through the country’s digital currency platform.
The proposal is contained in the Nigeria Payments System Vision 2028 (PSV2028), a strategic roadmap designed to transform the eNaira from a pilot initiative into a key pillar of Nigeria’s payment infrastructure.
Under the framework, the apex bank plans to drive broader adoption of the digital currency by integrating it into government-to-person payments, payroll systems, offline transactions and financial services tailored for micro, small and medium-sized enterprises (MSMEs).
ALSO: CBN Proposes Major Overhaul of Financial Holding Companies, Bars Parent Firms From Loan Decisions
Launched in October 2021, the eNaira became Africa’s first Central Bank Digital Currency (CBDC), with the objective of promoting financial inclusion, reducing transaction costs, improving remittance flows and supporting Nigeria’s transition to a cashless economy.
However, despite sustained regulatory backing, adoption levels have remained below expectations.
According to the CBN, the digital currency framework will be reviewed and enhanced to align with evolving market realities and user needs.
A major component of the roadmap is the integration of the eNaira into government disbursement programmes, which the regulator believes could significantly boost usage and mainstream adoption.
If implemented, public sector salaries, pension payments, conditional cash transfers, and other social welfare programmes could be distributed through the eNaira platform.
The move is expected to improve payment efficiency, reduce distribution costs and expand access to digital financial services, particularly among underserved populations.
New Features to Drive Adoption
The Payments System Vision 2028 also highlights the programmable-money capabilities of the eNaira, which could differentiate it from conventional payment systems.
Among the proposed features are time-restricted spending, purpose-specific payments, automated payment splitting and dedicated sub-wallets for various financial needs.
The CBN believes these capabilities could improve transparency, enhance fund management and increase the effectiveness of targeted government interventions.
Broader Role in Financial Markets
Beyond retail and consumer transactions, the apex bank said the eNaira could play a larger role in settlement systems, banking operations and the management of tokenised financial assets such as bonds and securities.
This, according to the regulator, would strengthen Nigeria’s financial market infrastructure and support the ongoing digital transformation of the economy.
CBN Governor Olayemi Cardoso said the Payments System Vision 2028 strategy is designed to reinforce Nigeria’s position as a leading digital payments market while improving efficiency, resilience and financial inclusion across the system.
Challenges Remain
Despite the creation of millions of eNaira wallets and transaction volumes estimated at approximately ₦22 billion, the digital currency has yet to gain widespread everyday acceptance.
The CBN identified several obstacles to adoption, including limited merchant acceptance, inadequate integration with banking and fintech platforms, and the absence of cross-border CBDC payment corridors.
To address these challenges, the regulator plans to position the eNaira as a preferred platform for government payments, remittances and trade settlements.
The apex bank also intends to make eNaira application programming interfaces (APIs) available to fintech companies, enabling broader integration, innovation and improved user experiences.
Cross-Border Payment Opportunities
As part of its long-term strategy, the CBN plans to explore bilateral CBDC corridor pilots with key trade and remittance partners.
The initiative is expected to facilitate faster, more efficient and lower-cost cross-border transactions while strengthening Nigeria’s role in the evolving global digital payments ecosystem.
For MSMEs, wider adoption of the eNaira could lower transaction costs, improve access to digital payment solutions, streamline government intervention programmes and create new opportunities within Nigeria’s expanding digital economy.
The proposed reforms form part of the CBN’s broader efforts to modernise the country’s payments landscape and accelerate financial inclusion through digital innovation.
