The Central Bank of Nigeria has announced a 50% reduction in transaction fees on its e-naira platform. The bank claims that this measure will increase the volume of transactions on the Central Bank Digital Currency (CBDC) platform. The central bank also believes that the widespread use of CBDC will increase the volume of cross-border trade in Nigeria.
Increased volume of e-commerce transactions
The Central Bank of Nigeria (CBN) will reduce by 50% the service fees borne by individuals and merchants using its digital currency platform in order to facilitate the introduction and penetration of the digital currency e-naira Central Bank (CBDC) Reportedly.
Additionally, there is reportedly an opportunity for Nigerian businesses to increase their respective e-commerce transaction volumes by 50% by becoming e-naira merchants.
A Daily Trust reportquoting Central Bank Deputy Governor Kingsley Obiorasuggests that Nigerian companies adopting CBDC could improve cash management and increase the country’s cross-border trade volume Nigerian companies could improve cash management and increase the country’s cross-border trade volume by adopting CBDC,” Obiora Obiora said.
In addition, the implementation of cross-border transactions in the third phase of the e-naira project is expected to increase cross-border transactions by about 30%. Furthermore, lower transaction costs are expected to increase the use of e-naira (volume and value of transactions) and improve income generation by firms.
Deepening Financial Inclusion
Obiora allegedly speaking at a merchant onboarding event days after CBN President Godwin Emefiele revealed that CBDC has less than 1 million users is. However, as Bitcoin.com News reported, the CBN is now targeting a tenfold increase in the number of e-naira users.
To achieve this, Emefiele said the central bank will add a feature that will allow users without bank accounts and smartphones to access the CBDC; the CBN has sinceintroduced the Unstructured Supplementary Services Data ( USSD) code that it says will deepen financial inclusion
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