EMEFIELE: WEAK INFRASTRUCTURE, LOW INCOME, OTHERS HAMPERING DIGITAL FINANCIAL INTEGRATION

He added that these innovations have benefitted from expanding payments system infrastructure, among other kinds of institutional support while digital technology has notably been disruptive to the financial landscape, threatening the intermediation role of traditional financial institutions.

“However, it presents new opportunities and unique challenges that require corresponding regulatory expertise and innovation, to continue to achieve the goals of monetary policy,” Emefiele noted.

Among other things, he said monetary authorities were catalysing interoperability within the financial system by enabling seamless interaction across networks, supporting entry and innovation into payments system networks while introducing new initiatives that facilitate access to financial data, such as open banking, leveraging application programming interfaces (APIs).

Continuing, Obiora, said among other milestones recorded by the CBDC, over 3,320 merchants have successfully registered on the eNaira platform across the country. He listed the merchants to include Shoprite, Sahad Stores, A.A. Rano, among others, adding that there are over 2.5 million daily visits to the eNaira website.

He said the central bank remained committed to attaining lofty heights in the adoption and integration of its digital currency in collaboration with the federal government and other relevant stakeholders as it continues to unlock new phases and possibilities in facilitating a reduction in cash processing costs and an efficient payment ecosystem in Nigeria.

However, he said the banking and financial systems are still grappling with some challenges including depth of financial inclusion, which the Enhancing Financial Innovation and Access (EFInA), said 17 million adults are not currently making electronic payments but own phones and are interested in mobile money.

“Another 22 million adults are not currently making electronic payments but say that they could be convinced to use it,” Obiora said.

He said the theme of the seminar remained apt, "considering that the payment landscape and ecosystem in Nigeria have attained lofty heights relative to its peers on the continent. As we are all aware, very few countries have launched a digital currency in the global space, and these include some emerging economies, namely Jamaica, the Bahamas, and the Eastern Caribbean.

“While the motivation for issuing a digital currency by different countries depends on their specific economic situations, the creation of programmable money; improvement in the transparency of money flows; and the provision for the seamless and easy flow of monetary and fiscal policy, remain at the forefront of each country’s agenda.

“Let me commence by underscoring the fact that the digitalisation of money enhances the powers of the CBN to impact its monetary policy. Consequently, it has the potential to change traditional structures of the banking and financial systems, while sustaining the primary mandate of the CBN.

“The gains in the digitalisation of money span across enhancing tax collection, social welfare transfers, and more importantly, provide benefits that would enhance the goal of cashless policy in Nigeria. Similarly, the digitalisation of money is very important for the facilitation of remittances, financial inclusion, financial market deepening, and ultimately, economic growth.”