The International Monetary Fund has advised the Central Bank of Nigeria to prepare for the eNaira’s potential to threaten the country’s financial and economic stability.
The IMF said, “Like digital currencies elsewhere, the eNaira carries risks for monetary policy implementation, cyber security, operational resilience, and financial integrity and stability.
“For example, eNaira wallets might be viewed as, or perhaps act as, a deposit at the central bank, reducing demand for commercial bank deposits.” There is a requirement to manage the eNaira’s cybersecurity and operational risks.”
On the other hand, it praised the eNaira’s benefits for the Nigerian diaspora in the form of inexpensive transfer fees when sending money from abroad.
“The eNaira is expected to lower remittance transfer costs, making it easier for the Nigerian diaspora to remit funds to Nigeria by obtaining eNaira from international money transfer operators and transferring them to recipients in Nigeria by wallet-to-wallet transfers free of charge,” the IMF stated.
“Nigeria is among the key remittance destinations in sub-Saharan Africa, with remittance receipts amounting to $24 billion in 2019.
“Remittances typically are made through international money transfer operators (e.g., Western Union) with fees ranging from 1 per cent to 5 per cent of the value of the transaction.”