The agricultural revolution laid the foundation for civilization. The industrial revolution mechanized productivity and changed the global economy.

The information age redefined how we communicate and access knowledge. Now, we are at the edge of another epochal shift: the age of decentralization, driven by Web3 technologies.

Beyond a technological upgrade Web3 is a redefinition of the very fabric of the internet. It represents a philosophical and structural evolution that places control back into the hands of users, enabling a digital economy governed by transparency and community participation.

Unlike the centralized models that defined the Web2 era—dominated by tech behemoths and data monopolies—Web3 envisions a world in which ownership is democratized, and intermediaries are eliminated.

The implications are sweeping, not just for global economies, but for governance, education, financial inclusion, identity, and human rights.

Around the world, nations are racing to stake their claim in this emerging order. In North America, the United States has led in technological innovation, building a dynamic blockchain ecosystem that includes infrastructure development, institutional investment, and academic programmes dedicated to blockchain and Web3 applications.

Europe, through the European Union, has taken proactive steps in crafting legal frameworks to support digital asset markets.

The Markets in Crypto-Assets (MiCA) regulation is one of the most comprehensive attempts by any region to provide legal certainty for blockchain-based businesses, thereby encouraging innovation while protecting consumers.

In Asia, governments and enterprises alike are integrating blockchain into various sectors, from digital identity and logistics in Singapore to gaming and entertainment in South Korea. China, despite banning cryptocurrency trading, has deployed one of the most ambitious Central Bank Digital Currency projects in the world with its Digital Yuan.

Elsewhere, Latin America has embraced Web3 out of necessity. With decades of economic volatility, inflation, and financial exclusion, citizens in countries like Argentina and Venezuela have turned to crypto assets and stablecoins as lifelines. In these countries, peer-to-peer transactions on blockchain networks offer more stability than local fiat currencies. The Web3 movement in this region is grassroots-led, community-driven, and survival-oriented.

Amid this global acceleration, Africa—despite its dynamic population, entrepreneurial energy, and mobile-first economy—remains largely on the sidelines.

While pockets of progress have emerged in countries such as Kenya, South Africa, and Nigeria, the continent has yet to unify its approach or scale innovations to meaningful levels.

Nigeria, the continent’s most populous country and arguably its most vibrant digital economy, presents a paradox.

On one hand, Nigerians rank among the highest users of cryptocurrency globally, indicating a strong appetite for decentralized tools. On the other hand, the regulatory environment remains murky at best and hostile at worst. Compounding the issue is the lack of infrastructure.

Many parts of the country still suffer from inadequate internet access, erratic electricity supply, and limited access to affordable smartphones—elements critical to the mass adoption of blockchain technologies.

Despite these challenges, the potential remains undeniable. Nigeria is brimming with youthful talent, an expanding tech scene, and a population hungry for alternatives to dysfunctional systems.

The recent rise of blockchain developers, community managers, Web3 content creators, and crypto influencers illustrates an underlying momentum waiting to be harnessed.

The launch of the eNaira was a step forward in exploring digital finance, but its centralization and poor implementation have limited its impact, failing to capture the imagination of the people or align with the Web3 ethos of decentralization and inclusivity.

This is the context in which “Decentralized Nigeria,” a trailblazing conference to be held at the prestigious Civic Centre in Victoria Island, Lagos, assumes great significance. With the theme “Igniting Africa’s Web3 Revolution,” the conference is not just another industry gathering.

It is a defining moment for the continent—a clarion call to governments, entrepreneurs, investors, creators, and everyday citizens.

The Decentralized Nigeria conference is the result of a collaborative effort between Rume Ophi, a leading figure in Nigeria’s Web3 industry and the Regional Operations Manager of lyfebloodDAO, and Nova Phoenix, a U.S.-based blockchain strategist, and founder of lyfebloodDAO.

The venture is a social media DAO coming into play in the Web3 space. Their complementary expertise and shared vision is a destined bond that’s crucial in shaping a decentralized African digital future.

It is poised to spark a truly global dialogue, uniting black international thought leaders with prominent African voices to delve into decentralized technology applications.

This powerful synergy becomes even more potent when considering the untapped financial resources, deep industry knowledge, and multi-disciplinary experts who, while rooted elsewhere, possess strong African connections throughout the diaspora.

Partnering these individuals in the Web3 space could be a transformative match, ensuring Africa not only keeps pace but actively shapes this technological frontier.

In addition to high-level discussions, the event will serve as an incubator for action. Stakeholders from policy circles, finance, education, technology, and civil society are expected to convene to forge partnerships, design inclusive strategies, and explore sustainable ways to integrate Web3 into Africa’s development blueprint.

It is also expected that investors and venture capitalists will be present to discover and fund the next generation of African Web3 startups.

Most importantly, the event will promote a sense of ownership and community. Web3 is, at its core, a people’s movement. It decentralizes power, ownership, and opportunity. For African creators, musicians, and artists, NFTs offer a way to monetize creativity without middlemen.

For small businesses, decentralized finance opens new doors to credit and liquidity. For local communities, DAOs provide frameworks for transparent, collective decision-making. For the unbanked, blockchain-based wallets offer a first step into the global financial system.

This vision, however, will not manifest without deliberate effort. Africa must choose to participate in shaping its digital destiny.

This means reforming policy to encourage responsible innovation. It means investing in infrastructure and digital literacy.

It means building local capacity in blockchain development, cryptographic security, and decentralized data systems. It means telling African stories through African blockchains.

The cost of inaction is too high. If Africa does not claim its space in the Web3 ecosystem, it will once again become a passive participant in an economic paradigm designed elsewhere. Platform dependency will deepen.

Data colonialism will evolve. Innovation will be imported rather than exported. And another opportunity for inclusive growth will be lost.

The promise of Web3 is not abstract. It is already being realized in parts of the world that have dared to dream, invest, and build. There is no reason Nigeria, with its intellectual capital and cultural influence, cannot lead this revolution—not just in Africa, but globally.

“Decentralized Nigeria” is an opportunity to spark this movement. It is a starting point for collective reimagining.

It is a signal to the world that Africa is ready, willing, and able to build its own decentralized future. From the heart of Lagos, a new narrative can emerge—one of innovation, inclusion, and independence.

This is not the time to sit on the sidelines. It is the time to engage, to learn, to build, and to lead. From developers to designers, from regulators to students, from investors to entrepreneurs, everyone has a role to play.

The decentralized future is here. Will Nigeria rise to meet it?

To be part of this historic conversation and help ignite Africa’s Web3 revolution, register today to attend Decentralized Nigeria at the Civic Centre, Lagos. The future awaits!

For more details, visit the website.

This ecosystem is supported by the innovative efforts of both financial institutions and fintechs, which have expanded access to financial services, driven adoption, and empowered millions of Nigerians. Innovations such as the Central Bank of Nigeria’s (CBN) eNaira, Africa’s first central bank digital currency, highlight how regulators are fostering groundbreaking solutions to enhance financial inclusion and modernize the economy.

One consistent theme in Nigeria’s financial services sector has been its unwavering focus on innovation and collaboration. From the early 2000s, when pioneers like Interswitch and NIBSS laid the groundwork, to the rise of fintech giants such as Paystack, Flutterwave, and PiggyVest in the 2010s, players in the ecosystem have consistently sought new ways to deliver value.

Today, blockchain is at the forefront of this evolution, with institutions adopting these technologies to improve efficiency and customer experiences. Zone, a trailblazer in regulated blockchain technology, is at the center of this shift, uniting banks and fintechs under a decentralized payment network.

In this exclusive interview, Sunday Agbi, vice president of Operations at Zone Payment Network, delves into how Zone is reshaping Nigeria’s payment landscape with its innovative infrastructure and partnerships.

TE: Zone has been described as a game-changer in the payments space. Can you give us an overview of what sets Zone’s infrastructure apart from existing payment systems in Africa?

Sunday Agbi: Zone’s infrastructure is Africa’s first regulated blockchain network for payments, and that alone marks a significant departure from conventional systems. Unlike traditional centralized systems, our decentralized network allows financial institutions to connect directly, eliminating the gaps experienced with centralized payment networks. This means faster transaction times, reduced costs, and increased security.

What truly sets us apart is how we’ve seamlessly integrated innovation with regulatory compliance. Zone was designed to address the unique challenges of Africa’s payment ecosystem while adhering to the highest standards of governance. By enabling direct, real-time interactions between financial institutions, our network ensures full transparency, making payments not only more reliable and secure but also more resilient.

This approach has earned the trust of leading financial institutions and regulators alike. By embedding compliance into the core of our infrastructure, Zone offers an interoperable system that empowers banks and fintechs to innovate without compromising security or regulatory standards.

TE: Collaboration with commercial banks and fintechs seems central to your strategy. How does Zone enable such partnerships, and what value do they bring?

Sunday Agbi: Collaboration is central to our mission because the future of payments depends on the synergy between traditional financial institutions and innovative fintechs. B

anks bring scale, trust, and deep customer relationships, while fintechs introduce agility, creativity, and new ways to engage users. Zone bridges these worlds, creating a unified infrastructure where both can thrive.

Our decentralized payment network enables seamless, real-time interactions between financial institutions on our network (both banks and fintechs alike).

For example, through our ZonePOS payment gateway,  financial institutions using ZonePOS can process transactions directly with the other, bypassing traditional intermediaries.

This not only reduces operational costs but also delivers a faster, more seamless experience for end-users.

Beyond technology, our partnerships are built on trust. By aligning with the regulatory frameworks of institutions like the Central Bank of Nigeria (CBN), we create an environment where both banks and fintechs can confidently innovate. This collaboration ultimately benefits merchants and consumers, strengthening Nigeria’s payment ecosystem.

TE: Zone operates in a highly regulated industry. How do you navigate compliance while staying innovative?

Sunday Agbi: Navigating regulatory compliance is non-negotiable in our space, and Zone prioritizes this at every level.

Our regulated blockchain infrastructure is not only innovative but also fully aligned with the requirements set by regulators like the Central Bank of Nigeria.

We actively engage with regulators to ensure our solutions meet and even exceed compliance standards. This involves building transparency into our system—such as ensuring full traceability of transactions—and using technology to enhance anti-money laundering (AML) and fraud prevention measures.

Ultimately, our commitment to compliance ensures that the ecosystem we’re building is both sustainable and trusted by all stakeholders.

TE: How is Zone preparing for the future of payments in Africa, given the rapid evolution of technology and customer expectations?

Sunday Agbi: The future of payments in Africa lies in scalability, accessibility, and trust. At Zone, we’re focused on expanding the capacity of our decentralized network to accommodate increasing transaction volumes while reducing latency to near-zero levels.

Furthermore, we continuously invest in our R&D to anticipate customer needs, ensuring our infrastructure is future-proof.

TE: Looking ahead, what does success look like for Zone in the next five years?

Sunday Agbi: Success for Zone is rooted in creating a payment ecosystem that transcends borders while continuing to redefine what’s possible within regulated blockchain technology.

Over the next five years, we aim to expand our network to connect financial institutions and fintechs not only across Africa but also on a global scale. By enabling seamless local and cross-border payments, Zone will become an essential bridge for financial services between emerging and developed markets.

We also envision Zone as the definitive example of what regulated blockchain can achieve—a concept championed by our CEO & Co-founder Obi Emetarom.

By demonstrating how decentralization and regulation can work in harmony, we aspire to set a global standard for innovation in payments.

In addition, we’re committed to evolving our network’s capabilities to support a broader range of use cases.

From powering regulated DeFi protocols to providing a platform for advanced financial products, Zone will continue to push the boundaries of what blockchain can do in a compliant, secure, and scalable manner.

Ultimately, success means building a financial infrastructure that empowers institutions, businesses, and individuals—enabling payments that are faster, more reliable, and inclusive, and ensuring that Africa remains a leader in the global financial innovation landscape.

The CBN’s newly revealed Monetary, Credit, Foreign Trade, and Exchange Policy Guidelines for Fiscal Years 2024-2025 outline plans to integrate eNaira into government payment systems.

This initiative will enable Ministries, Departments, and Agencies (MDAs) to process payments to vendors and beneficiaries directly from their eNaira wallets.

The CBN’s strategy includes the forthcoming release of eNaira version 2.0, which is expected to enhance the currency’s functionality.

Key improvements will feature collaboration with federal and state governments and the introduction of offline capabilities and programmable money. These upgrades aim to solidify the eNaira’s role in both digital and traditional financial sectors.

Despite these advancements, the eNaira’s adoption has been low. As of March 2024, it constitutes just 0.36% of the total currency in circulation, showing limited uptake despite the CBN’s efforts to promote its use.

The CBN has previously waived transaction fees for eNaira transactions and established a minimum capital requirement for service providers to stimulate adoption. However, the International Monetary Fund (IMF) has critiqued the slow growth in eNaira wallet downloads, revealing the struggle in gaining user acceptance.

Alongside these developments, the CBN has reiterated its focus on maintaining the Ways and Means Advances to the federal government at a 5% threshold for the fiscal years 2024-2025.

This policy allows the CBN to provide short-term financing to cover budget deficits, capped at 5% of the previous year’s revenue. Advances must be repaid within the fiscal year to avoid long-term fiscal burdens.

The policy now includes provisions for calculating these advances by incorporating sub-accounts of MDAs linked to the Consolidated Revenue Fund, aligning with the Treasury Single Account (TSA) framework. This adjustment aims to provide a more accurate assessment of the federal government’s cash position.

Recent legislative actions have seen proposals to increase the Ways and Means threshold to 10%, a move that has raised concerns about potential inflationary impacts and economic stability.

Critics, including CBN Monetary Policy Committee member Murtala Sabo Sagagi, argue that such an increase could lead to excessive liquidity and exacerbate inflationary pressures.

In response to previous misuse and controversy surrounding the Ways and Means facility, the CBN has taken steps to address these issues. This includes restructuring outstanding loans and halting further advances until previous amounts are repaid.

Finance Minister Wale Edun has confirmed that the federal government has repaid N7.3 trillion in advances, a significant step in managing the country’s fiscal challenges.

She said: 

“It will be a journey and we will walk the journey together with the legislator. All European Institutions will be involved to make sure that Europe is equipped with the currency of the future. Cash is here to stay. You will have all options: cash and digital cash. 

So what does it mean for you? For Consumers, it would be free and easy to use everywhere in the Euro area. All of that, of course, is subject to the legislative process.

Cash or digital, the choice will be yours.”

This development has ignited discussions about the potential impact of CBDCs on the tech industry. 

Proponents believe CBDCs could enhance innovation and financial inclusion, while skeptics warn they could limit competition and lead to privacy concerns.

Understanding CBDCs

Central bank digital currencies (CBDCs) are digital versions of traditional fiat currencies issued and controlled by central banks. Unlike physical cash, CBDCs exist solely in electronic form. 

Several countries, including Nigeria, England, Sweden, and Uruguay, have explored launching digital versions of their currencies.

Nigeria and the eNaira

Nigeria became the first African country to launch a CBDC, the eNaira, in October 2021. The Central Bank of Nigeria (CBN) aimed to improve financial inclusion, combat money laundering, and promote digital payments with the eNaira.

However, these moves have led to increasing concerns. Nigerians have mixed reactions to the eNaira, the country’s CBDC. Supporters of the eNaira believe it can bring financial services to the unbanked population, many of whom rely on mobile phones. Fintech companies can create eNaira-based wallets and apps to make financial services more accessible.

They also argue that the eNaira can offer faster, cheaper cross-border transactions and reduce the risks associated with handling cash.

Nonetheless, critics say despite government incentives, adoption has been slow. Some Nigerians prefer the familiarity and privacy of cash. The long-term impact on traditional banks is not very clear, potentially discouraging tech investment in the financial sector and lastly, as with any digital currency, data privacy surrounding eNaira transactions is a worry.

Nigerians have protested government efforts to limit cash availability, viewing it as a push towards a cashless society. They see the eNaira as part of this effort and prefer the freedom and anonymity of cash.

What are People Saying about EU’s Digital Euro?

The announcement of the European Union’s new Central Bank Digital Currency (CBDC), the digital euro, led to a range of responses, showing concerns and skepticism about the implications of CBDCs for individual freedoms and privacy.

One common concern expressed by critics is the potential for CBDCs to centralize power in the hands of unelected technocrats, enabling them to exert control over how, when, and where the digital currency can be spent. 

This control could extend to the implementation of social credit systems, carbon allowances, and vaccine passport systems, raising fears of increased surveillance and erosion of personal autonomy.

There is also skepticism regarding assurances that physical cash will remain a viable option alongside CBDCs. Critics argue that proponents of CBDCs may have intentions to gradually phase out cash altogether, leading to further concerns about loss of financial freedom and privacy.

Critics also highlight historical context, such as the European Union’s drive towards ever closer union and control by bureaucrats, as evidence of a broader agenda aimed at centralizing power and control. 

This perspective challenges the notion that the EU is solely focused on good intentions, suggesting instead that it may serve interests that prioritize centralized control over individual autonomy.

Concerns about recourse in situations where banks refuse transactions or restrict spending highlight anxieties about potential abuses of power in a cashless society. Without the option to withdraw physical cash, individuals may feel vulnerable to arbitrary restrictions on their financial freedom.

In light of these concerns, some voices call for resistance against CBDCs and the perceived digital open-air prison they represent. They speak of the urgency in safeguarding individual freedoms and privacy in the face of technological advancements that have the potential to affect societal structures and power dynamics.

Let’s take a quick look at the potential benefits of CBDCs:

• Enhanced Efficiency: CBDCs could simplify cross-border payments, reducing transaction costs and settlement times for tech companies reliant on international transactions.
• Innovation Catalyst: A CBDC industry could spur the development of new financial products and services. Tech firms could leverage CBDCs to create innovative payment solutions, lending platforms, and loyalty programs.
• Financial Inclusion: CBDCs could provide access to financial services for the unbanked population, promoting financial inclusion. Tech companies could play a role in developing user-friendly CBDC wallets and applications.

However, CBDCs also present potential challenges for the tech industry:

• Disintermediation: CBDCs could disintermediate traditional financial institutions, potentially reducing the need for some financial technology (Fintech) companies.
• Competition: Central banks could choose to limit private sector involvement in the CBDC industry, hindering innovation and competition.
• Data Privacy: The data collected through CBDC transactions could raise privacy concerns. Tech companies involved in developing CBDC solutions would need to ensure strong data security measures are in place.

The Future of CBDCs and the Tech Industry

Ultimately, the debate surrounding CBDCs brings about deeper questions about the balance between convenience and control, individual freedom and centralized authority. 

Policymakers and citizens alike need to engage critically and thoughtfully to ensure that any digital currency initiatives serve the interests of the people while upholding principles of transparency, accountability, and individual autonomy.

The impact of CBDCs will depend on the design and implementation of CBDC systems by central banks. Nevertheless, CBDCs can impact the financial industry, presenting both opportunities and challenges to the tech sector.

Payment is an important driver of commerce and socio-economic development. The evolution of payment is today revolutionizing society. 

Across the African continent, technology intertwines with tradition forging a path toward financial inclusion. As digital payment infrastructure expands, businesses flourish and communities thrive. The once-insurmountable challenges of accessing financial services are being overcome, opening doors of opportunity for individuals and enterprises alike.

From the bustling streets of Nairobi to the vibrant cities of Johannesburg, and the ancient wonders of Egypt to the thriving markets of Nigeria, a transformative wave is sweeping across Africa. In this digital age, the continent is witnessing a revolution in the realm of financial connectivity, propelled by the remarkable rise of digital payment systems. 

Indeed, digital payment adoption is rapidly gaining momentum, reshaping the way transactions take place. Today, digital payment solutions are weaving their way into the fabric of everyday life, revolutionizing the economic landscape.

With a growing population embracing the convenience of mobile wallets and contactless transactions, Africa is charting a course toward a cashless future.

The continent has moved quickly from cards to the latest emerging digital solutions. Now that Contactless is on the board how prepared is Africa to engage, mingle and progress?

Is Africa ready to step into a realm where innovation intertwines with progress, and where the potential for a more inclusive and prosperous future takes centre stage?

The Digital PayExpo 2023, where visionaries, regulators, and industry experts converged to chart Africa’s transformative journey into the contactless revolution provided a scintillating insight into the future.

Adeyinka Adeyemi, Managing Director/CEO, INTERMARC Consulting, organiser of the forum in his welcome address revealed that the theme of this year’s event The Future is Contactless was chosen in recognition of the trajectory of digital payment. 

According to him, “We are here to further our understanding of the impact, implications and direction of financial technologies, particularly to glean into the future of contactless payments.”

Right off the bat, the speakers conceded that financial inclusion has improved across the country with digital payment as the catalyst driving it. They argued that the regulators continue to play a crucial role in fostering confidence in the financial industry, particularly the Nigeria Deposit Insurance Corporation (NDIC) through the insurance of deposits and the Central Bank of Nigeria (CBN) proactive and forward-looking policy.

Bello Hassan, Managing Director and Chief Executive Officer, NDIC, delivering his keynote address emphasized the importance of financial inclusion and highlighted the significant progress made in recent years.

He urged regulators to leverage innovation and digitalization to further enhance the function of the emerging digital economy. He pointed out that the introduction of eNaira and insurance for deposits in the financial sector were among the strategies discussed to foster confidence in digital payments and improve financial inclusion.

Musa Jimoh, Director, Payment Systems, CBN, highlighted the fact that regulators face a dilemma of keeping up with the speed of technological advancements.

He stressed that risk mitigation and consumer protection should be top priorities to build trust in the digital payment ecosystem. He noted that it is important that issues around restitution and chargeback mechanisms are addressed effectively to allay consumer concerns.

Elias Igbinakenzua, MD, Globus Bank, provided insights into the future of banking, which is rapidly evolving towards a digital-first approach. He revealed that the transition from cards to digital payments was driven by smartphone adoption, increased internet penetration, and technological advancements.

According to Igbinakenzua, “Efficiency, enhanced personalization, mobile banking dominance, open banking, and collaboration with fintech companies are crucial factors for future success.” 

Experts, during the panel sessions, discussed the transformative potential of blockchain technology in the financial sector.

They emphasized the need for banks to collaborate with fintech companies, leveraging big data analytics to offer personalized services and seamless customer experiences across various touchpoints. The consensus was that collaboration rather than competition between banks and fintechs was the key to success.

Education and awareness campaigns were deemed essential to address the lack of awareness and device limitations that hinder the adoption of contactless payments. The need for greater collaboration between tech entrepreneurs and the government, as well as the establishment of common regulatory frameworks for AI, was equally highlighted.

Experts equally emphasized the need for robust security measures, employee education, strong customer authentication, and the creation of alternative credit scores to minimize risks. Collaboration among industry players and the implementation of safety nets such as SIM PINs were identified as crucial steps in ensuring the integrity of digital transactions.

The Digital PayExpo 2023 highlighted the transformative power of contactless payments and the importance of collaboration, education, and innovation to achieve financial inclusion in Nigeria.

As the digital banking landscape continues to evolve, industry players must embrace technology, strengthen security measures, and provide seamless customer experiences.

With concerted efforts from regulators, banks, fintech companies, and consumers, Nigeria’s digital payment ecosystem is poised for significant growth, shaping the future of the nation’s and indeed Africa’s economy.

Contactless payment refers to a method of making secure and convenient transactions without the need for physical contact between a payment card or mobile device and a payment terminal. It enables users to make payments by simply tapping their contactless-enabled cards or devices, such as smartphones or smartwatches, near a contactless payment terminal.

With the popularity of mobile payments, contactless credit cards and other payment systems taking off in recent years, it is clear that this trend will not be slowing down anytime soon.

The consensus is that contactless payment will spurn a tale of innovation and progress in Africa’s transformative journey.

As more and more people tap into the potential of this technology, unlocking new possibilities and paving the way for a more inclusive and prosperous future. The stage is set, the momentum is building, and Africa is ready to embrace the contactless revolution.

The transformative payment journey for the entire African continent has begun! 

Elvis Eromosele, a Corporate Communication professional and public affairs analyst lives in Lagos.

The Governor credited the boost in the value of CBDC transactions to the use of the e-naira by the Nigerian government when transferring social welfare funds to marginalized groups.

The value of Nigeria’s central bank digital currency (CBDC) transactions increased by 63% to $47.7 million (22 billion), with approximately 13 million e-naira wallets downloaded since October 2022, said Emefiele.

However, the country’s currency in circulation fell from more than $6.9 billion (3.2 trillion) in September 2022 to around $2.2 billion in September 2023. (N1 trillion).

The Central Bank of Nigeria’s (CBN) botched demonetization policy has been blamed for the drop in the value of circulating naira banknotes.

Following the announcement of its plan to circulate newly designed banknotes, Nigerian residents were given a few months to return old 200, 500, and 1,000-naira banknotes.

The perceived short repatriation period, as well as the CBN’s failure to provide sufficient banknotes of the newly designed naira, sparked violent protests and requests for a deadline extension.

According to TechEconomy, after the Nigerian Supreme Court ruled against the demonetization process, the Central Bank of Nigeria (CBN) relented and now says previously demonetized banknotes will remain legal tender until the end of the year.

Despite the CBN’s change of heart, both new and old naira banknotes are said to be in short supply, which some Nigerian commentators believe may explain the sudden increase in the value of e-naira transactions.

Godwin Emefiele, Governor of the Central Bank of Nigeria (CBN), announced the plan to redesign the N200, N500, and N1,000 notes in October 2022.

Since the notes’ release, Nigerians in various parts of the country have been unable to obtain them from banks and ATMs in time for the recently concluded election.

At the height of the crisis, the CBN had advised Nigerians to turn to alternatives such as eNaira and digital channels. Many transactions have failed or been delayed as a result of using these channels.

Consequently, a crisis between some Governors and President Muhammadu Buhari ensued, leading to a filing at the court. The Supreme court had restrained the Federal Government from going ahead with the implementation of the policy.

But the President, in a nationwide broadcast, ignored the apex court order by extending the validity of the old N200 notes while insisting that the old N500 and N1,000 remained illegal.

Buhari further stated that the old N200 note would be legal tender till April 10, 2023, while urging Nigerians to deposit their old N500 and 1000 notes with the central bank.

However, before the presidential election on the 25th of February, analysts believed that the CBN’s new Naira redesign policy was targeted at some politicians who were contesting for public office.

However, the election is over while the quagmire persists.

Temitope Alabi, a POS operator told TechEconomy on Friday that access to the new Naira notes remains a big issue, as there are limited notes available.

The POS operator who charges N100 per thousand added that when there is cash, nobody takes more than N2,000.

“We don’t usually have cash but when we do, it’s usually a small amount and we don’t give more than N2,000. We had hoped that the situation was going to change after the election but it’s almost still the same.”

While the consequences of the policy continue to play out, Nigerians are making several calls on the apex bank to make cash available.

In a video seen by TechEconomy on Thursday, President Muhammadu Buhari apologized to Nigerians over the naira redesign policy, saying that it was not introduced to cause hardship.

“I apologize to you for the hardship caused by the change of the naira. It was done to boost the economy of the country, not to cause hardship to anybody,” the president said.

eNaira is a central bank digital currency issued and regulated by the Central Bank of Nigeria. It serves as both a medium of exchange and a store of value and claims to offer better payment prospects in retail transactions when compared to cash

Osita Nwanisobi, Director of Corporate Communications at CBN, stated at the recently concluded 44th Kaduna International Trade Fair that the Nigerian payment system infrastructure could handle the surge in transaction volumes across all payment channels.

Following the implementation of the naira redesign policy, citizens have struggled to obtain naira notes from banking halls and automated teller machines (ATMs), according to the CBN Director.

Mohammed Abbah, CBN’s Director of capacity development, represented Nwasinobi at the event.

On the naira redesign policy, he said the initiative was not aimed at any individual, as was insinuated in the public domain.

“The CBN Governor, Mr. Godwin Emefiele, has always said that the policy is not targeted at anyone or any group of persons, rather, it is derived from the bank’s in-house analysis to strengthen our macroeconomic fundamentals and better our socio-economic conditions,” Nwanisobi said.

“The principal aim of the bank, with the currency redesign initiative, is to make our monetary policy decisions more efficacious.
Advertisement

“Nigerians will observe that there has been a downward trend in inflation, and the exchange rates have been relatively stable.”

“Furthermore, we aim to increase financial inclusion in the country by reducing the number of unbanked people.”

“Thirdly, we aim to support the efforts of our security agencies in combating banditry and ransom-taking in Nigeria through this program.”

The CBN director said the apex bank was aware of the challenges some citizens have had to face in the past few weeks in efforts to get money from their banks.

He said that there have been reports of occasional transaction failures on alternative payment channels.

“However, we wish to assure you that the Nigerian payment system infrastructure is robust enough to handle the surging transaction volumes across all channels,” Nwanisobi said.

“We, therefore, urge Nigerians to embrace alternative payment channels, such as e-Naira and internet banking, as we embrace the cashless policy.”

The memo read, “Further to the launch of the redesigned naira notes by the President, Major General Muhammadu Buhari (retd.), on Wednesday, November 23, 2022, and in line with the cashless policy of the CBN, all deposit money banks and other financial institutions are hereby directed to note and comply with the following:

“1. The maximum cash withdrawal over the counter by individuals and corporate organisations per week shall henceforth be N100,000 and N500,000 respectively. Withdrawals above these limits shall attract processing fees of 5% and 10%, respectively.

“2. Third-party cheques above N50,000 shall not be eligible for payment over the counter, while extant limits of N10,000,000 on clearing cheques still subsist.

“3. The maximum cash withdrawal per week via Automated Teller Machine shall be N100,000 subject to a maximum of N20,000 cash withdrawal per day.

Department. ii. Compliance with extant AMUCFT regulations relating to the KYC, ongoing customer due diligence and suspicious transaction reporting etc., is required in all circumstances. iii. Customers should be encouraged to use alternative channels (internet banking, mobile banking apps, USSD, cards/POS. eNaira, etc.) to conduct their banking transactions.

“Finally, please note that aiding and abetting the circumvention of this policy will attract severe sanctions.

“The above regulatory directives take effect nationwide from January 9, 2023. Please be guided accordingly.”

Developed by SystemSpecs Technology Services Limited (STSL), a subsidiary of Nigeria’s indigenous technology giant, SystemSpecs Group, FundACause received the award for its impact in optimising donation-based fundraising in Nigeria and beyond.

Demola Igbalajobi, Managing Director, STSL, said the award is a recognition of how FundACause has made fundraising seamless, secure and transparent for individuals and organisations to easily raise funds for causes they care about from anywhere in the world.

“FundACause gives donors multiple payment options including card, internet banking, electronic wallet, USSD, bank transfer, phone number and eNaira – it also shows in real-time donations on the fundraiser’s campaign. The software allows for quick and easy campaign setup, live monitoring of campaigns and donations, support for overseas donations and comprehensive reports which results in transparency and accountability of fundraising activities.

“Our success story is dependent on our pursuit to positively impact humanity and make fundraising in Nigeria easier. We are incredibly satisfied with the rapid results the solution is garnering; this demonstrates its much-anticipated long-term success,” he added.

While expressing his thoughts about the future of the organisation, Demola stressed that SystemSpecs Technology Services Limited is committed to churning out innovations that enable simpler, easier, and faster financial solutions across the country.

“Our team is made up of the finest software developers and experts who are dedicated to simplifying day-to-day financial services challenges faced in the country. Nigerians should expect more pragmatic solutions from us,” he said.

At the Nigeria Fintech Awards ceremony, the Group Managing Director (GMD), SystemSpecs Group, John Obaro, also received the Special Leadership Award.

SystemSpecs has won several awards recently which has reinforced its position as the software institution of reference in Africa. Some of these awards include Software Company of the Year at the Beacon of Information & Communication Technology (BoICT) Awards (2018), Most Innovative e-Payment Company of the Year at the BusinessDay Top 25 Most Innovative Companies & Institutions Award (2017) and many more.

======

PHOTO: L-r: Emmanuel Obinne, Head of Growth and Partnerships, West Africa, BPC Banking Technologies, presents the award for “Best Crowdfunding Platform” won by FundAcause to Mrs. Ire Odega, Business Development, FundAcause, SystemSpecs Technology Services Ltd., and Tereigh Ozakpo, Head, Sales and Business Development, Digital Financial Services, SystemSpecs Group, at the Nigeria Fintech Awards, held at the Oriental Hotel, Victoria Island, Lagos, on Friday, November 4, 2022.