CBN releases regulatory guidelines on the eNaira

eNaira

The Central Bank of Nigeria has released the regulatory guideline on the eNaria.

This is according to documents seen by Nairametrics, titled, “REGULATORY GUIDELINES ON THE eNAIRA”.

The document, the guidelines shall apply to all financial institutions and users of the eNaira. During the onboarding process, users shall have the option to disclose whether the eNaira wallet being created will be operated for self or as trustees.

The document reads,

“The Central Bank of Nigeria, under the Central Bank of Nigeria (CBN) Act 2007 and the Banks and Other Financial Institutions Act (BOFIA) 2020, is empowered to issue legal tender currency, ensure financial system and promote the development of electronic payments system. The Bank, in furtherance of its mandate, hereby issues the following guidelines for the operation of the eNaira.

“The eNaira is the digital form of the Naira, issued by the CBN in line with Section 19 of the CBN Act. It is a direct liability of the Bank, a legal tender and will form part of the currency in circulation and will be at par with the physical Naira (that is 1:1). 

“The eNaira shall complement traditional Naira as a less costly, more efficient, generally acceptable, safe and trusted means of payment. In addition, it will improve monetary policy effectiveness, enhance the government’s capacity to deploy targeted social interventions and boost remittances through formal channels.

“The eNaira wallet is required to access, use and hold eNaira. The eNaira will be exchangeable for other Central Bank Digital Currencies (CBDC).”

The Central Bank of Nigeria (CBN) will mint and issue eNaira using the Digital Currency Management System (DCMS).

In order to keep and manage Naira on the DCMS, financial institutions must have a treasury eNaira wallet.

In order to manage their digital currency holdings, requests, and redemptions with the CBN, FIs use the Financial Institutions (FI) Suite as their principal application.

It is only the Central Bank of Nigeria (CBN) that owns the eNaira stock wallet, and it will store all eNaira that are issued.

The eNaira wallet’s security will be enhanced with the use of two-factor authentication and other security measures.

The eNaira transaction fees will follow the Guide to Bank Fees, Other Financial and Non-bank Financial Institutions.

The Money Laundering (Prohibition) Act 2011 (as amended), the Terrorism (Prevention) Act 2011 (as amended), and other current anti-money laundering rules and regulations issued by the Central Bank of Nigeria (CBN) from time to time are mandatory compliance for financial institutions.

Consumer complaints about the eNaira will be handled by the preferred FI Helpdesk of the user. If the FI Helpdesk is unable to fix the issue, it will be forwarded to the eNaira Helpdesk at 0800myeNaira (0800 6936 2472) or [email protected]

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