CBN Enhances eNaira with NFC Upgrade for Contactless Payments in Nigeria

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The Central Bank Digital Currency (CBDC) project, also known as eNaira, remains steadfast in its commitment, despite recent leadership changes at the Central Bank of Nigeria (CBN). In a bid to drive adoption rates and enhance user experience, the CBDC mobile app has been integrated with Near Field Communication (NFC) technology by the CBN.

NFC technology allows mobile devices and payment terminals to interact when in close proximity, facilitating seamless and contactless eNaira payments. The move comes as the CBN aims to modernise the eNaira platform and align it with global standards.

Previously, the eNaira app featured QR codes, but the latest NFC upgrade is expected to increase the CBDC's adoption rates. Joseph Angaye, the deputy director of the CBN's risk management department, emphasised the banking regulator's commitment to leveraging innovative technology to enhance the user experience.

The CBN's push towards programmability features in the CBDC offers added security and targeted fund allocation. Limiting CBDC payments exclusively to designated government programs reduces the risk of fraud. Farmers, for instance, can benefit from specific fund allocation for purposes such as tool acquisition. This approach ensures that funds transferred to their eNaira wallets are non-divertible for unrelated purposes, promoting transparency and adherence to the intended use.

Angaye highlighted numerous advantages of CBDCs for retail users in Nigeria, including mitigating settlement risks and enabling rapid transaction processing. The eNaira aims to address the issue of financial inclusion, and Nigeria's pioneering role in adopting CBDCs provides valuable insights for other economic players and entities.