NFC technology has been integrated into the eNaira by the Nigerian central bank to facilitate contactless transactions

By Jeet Adhvaryu On Jul 23, 2023

Despite the removal of the previous governor about two months ago, the Central Bank of Nigeria (CBN) has shown no signs of quitting its central bank digital currency (CBDC) program.

The CBDC smartphone app has reportedly been updated by the central bank to include Near Field Communication (NFC) technology, as reported by a local news media (The Sun). This enhancement allows for quick and contactless eNaira payments to be made when mobile devices and payment terminals are in close proximity to one another.

The CBN is believed to have emphasised that the recent inclusion of NFC technology would play a vital role in increasing CBDC acceptance rates, despite the fact that earlier versions included QR codes. Joseph Angaye, the CBN’s deputy director of risk management, allegedly said that the CBN is dedicated to using cutting-edge technologies to improve the customer service it provides.

Angaye, who is allegedly committed to implementing innovative ideas, has said that the CBDC would include programmability characteristics. He elaborated on how the CBDC’s programmability characteristics may restrict funding to just approved government programmes, hence lowering the opportunity for fraud.

Angaye is quoted as saying that the CBDC’s adaptability makes it possible to provide money to farmers for particular projects, like buying new tools. This method ensures that the intended use of the money is closely adhered to by making them non-divertible after they have been placed into their eNaira wallet.

Angaye reportedly lauded the many benefits of CBDCs for retail users in the nation, including their ability to speed up transaction processing and reduce settlement risks. He emphasised that the eNaira is an attempt to solve the problem of financial exclusion and that the example set by Nigeria’s early adoption of CBDCs is instructive for other economic actors and organisations.

In 2021, Nigeria introduced the eNaira, making it one of just a few nations to provide a CBDC. Adoption rates have been lower than the central bank had hoped, leading it to investigate other strategies for increasing participation. The USSD feature was pushed out by the central bank with transportation-related use cases.

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