Connect with us

Business News

IMF: 98.5% eNaira Wallets Redundant Since Inception

Published

on

Share

By Tony Obiechina, Abuja

The International Monetary Fund (IMF) has said that 98.5 percent of eNaira wallets have not been used even once.

In its recently released working paper titled ‘Nigeria’s eNaira, One Year After’, the Bretton Woods institution took stock of the first year of the eNaira —the first central bank digital currency (CBDC) in Africa.

President Muhammadu Buhari formally launched the digital currency at the State House in Abuja on October 25, 2021.

The IMF said despite the laudable undisrupted operation for the first full year, the CBDC project has not yet moved beyond the initial wave of limited adoption.

The fund said the take-up of the eNaira by households and merchants has been slow.

The IMF described the public adoption of the eNaira as “disappointingly low” due to the levels of wallet downloads and transactions.

The fund said as of end-November 2021, the total number of retail eNaira wallets amounted to about 860,000 — a figure equivalent to just 0.8 percent of Nigeria’s active bank accounts.

“The retail wallet downloads saw a few weeks of initial surge before tapering off. More specially, it only took 25 days for the number of downloaded wallets to reach 500,000 units—but going from there to 600,000 units took another 63 days; and to 700,000 units yet another 143 days,” the paper reads.

“As of end-November 2021, the total number of retails eNaira wallets amounted to about 860,000. This is just 0.8 per cent of Nigeria’s active bank accounts.

“Merchant wallet download has reached about 100,000 in end-June, which is about one eleventh of the number of merchants with Point-of-Sales (POS) terminals—which enables credit or debit card payments.”

On transactions, the IMF said most wallets appear to remain inactive except for a limited window of weeks of activity surge.

The institution said the average number of eNaira transactions weekly were carried out only by 1.5 percent of downloaded wallets.

“The average number of eNaira transactions since its inception amounts to about 14,000 per week—only 1.5 percent of the number of wallets out there. This means that 98.5 percent of wallets, for any given week, have not been used even once,” the paper further reads.

“The average value of eNaira transactions has been 923 million naira per week—0.0018 percent of the average amount of M3 during this period. The average value per one transaction has been 60,000 naira.”

The IMF said network effects suggest the initial low adoption spell would require a coordinated policy drive to break it.

“The eNaira’s potential in financial inclusion requires a strategy to set the right relationship with mobile money, given the former’s potential to either complement or substitute the latter,” the institution said.

“Cost savings from integrating CBDC—as a bridge vehicle—in the remittance process may also be substantial.”

Business News

NAICOM, RMAFC Collaborate on Economic Diversification 

Published

on

Share

By Tony Obiechina, Abuja 

The Commissioner for Insurance and CEO, Mr. Olusegun Ayo Omosehin, and his management team have met with the members of the Constitutional Committee on “Mobilisation and Diversification” of the Revenue Mobilisation Allocation and Fiscal Commission ( RMAFC) led by Engr.

Sani Mohammed Baba, to explore ways of diversifying the Nigerian economy.
 

During their working visit to NAICOM Headquarters, Mr.

Olusegun Ayo Omosehin, in his opening remarks, reaffirmed the critical role of the insurance sector regulator in supervising, regulating, and safeguarding the interests of insurance policyholders. 

He highlighted insurance’s pivotal role in mobilising savings for long-term developmental projects and enabling businesses to thrive while managing risks effectively.

 

He also stressed the Commission’s commitment to ensuring insurance companies meet their obligations, thus contributing to the sustainability of the economy.

Speaking, Mohammed Baba emphasised the importance of revenue generation, institutional expansion, and employment creation for Nigerians through collaborative efforts.

The Commissioner for Insurance also acknowledged President Bola Ahmed Tinubu’s ambitious goal of growing the Nigerian economy to One Trillion United States Dollars ($1 trillion) by 2026. 

He expressed the insurance sector’s intent to significantly contribute to this objective. Additionally, he mentioned ongoing efforts to embed insurance within the National Credit Scheme to ensure its sustainability.

Omosehin stressed the need for continuous advocacy and sensitization of government institutions about the vital role of insurance in national economic development.

Continue Reading

Business News

CBN Unveils Strategy to Boost Remittances, Grants AIP To 14 New IMTOs

Published

on

dailyasset-greetings
Share

By Tony Obiechina, Abuja 

The Central Bank of Nigeria (CBN) has activated plans to double foreign-currency remittance flows through formal channels by granting 14 new International Money Transfer Operators (IMTOs) Approval-in-Principle (AIP).

This was disclosed in Abuja on Wednesday, by the Bank’s Acting Director of Corporate Communications, Mrs.

Hakama Sidi Ali, who stated that the initiative will help increase the sustained supply of foreign exchange in the official market by promoting greater competition and innovation amongst IMTOs to lower the cost of remittance transactions and boost financial inclusion.
 

She said, “This will spur liquidity in Nigeria’s Autonomous Foreign Exchange Market (NAFEX), augmenting price discovery to enable a market-driven fair value for the naira.

“It will be recalled that the CBN Governor, Mr. Olayemi Cardoso, had recently declared: “We’ve set ourselves a target to double remittance flows into Nigeria within a year, a goal I firmly believe is within reach. 

“We are wasting no time driving progress to remove any bottlenecks hindering flows through formal channels permanently. We have a determined pathway and a sequenced approach to tackling all challenges ahead, working hand in hand with key stakeholders in the remittance industry,” she stated.

Continuing, Sidi Ali, said that the CBN viewed increasing formal remittance flows—one of the major sources of foreign exchange, accounting for over 6% of GDP—as a means of reducing the historical volatility in Nigeria’s exchange rate caused by external factors, such as fluctuations in foreign investment and oil export proceeds.

The increase in the number of IMTOs is one of the primary actions initiated by the CBN’s remittance task force, overseen by Governor Cardoso as a collaborative unit pulling together specialists to work closely with the private sector and market operators to facilitate the ease of doing business in the remittance ecosystem in Nigeria. 

The task force was established as a direct result of an executive learning session with IMTOs during the World Bank/IMF Spring Meetings held in Washington DC, United States of America, in April 2024. The task force will meet regularly to implement strategy and monitor the impact of its measures on remittance inflows.

Continue Reading

Business News

Tinubu Inaugurates Critical Gas Projects, Reassures Energy Sector Investors

Published

on

Share

By Matthew Dadiya, Abuja

President Bola Tinubu has reassured investors in the energy sector of his administration’s resolve to further enhance the business environment and ensure investment convenience.

The President spoke Wednesday at the inauguration of three milestone projects, including the expanded AHL Gas Processing Plant; the ANOH Gas Processing Plant, and the 23.

3km ANOH – Obiafu-Obrikom-Oben (OB3) Custody Transfer Metering Station Gas Pipeline.

In a speech during the virtual inauguration of the projects at the State House, Tinubu also assured citizens that his administration is stepping up its coordination of other landmark projects and initiatives that will ensure the earliest realization of gas-fueled prosperity in the country.

 

The President, according to a statement by Special Adviser on Media and Publicity, Ajuri Ngelale, noted that the projects were fully in line with the Decade of Gas Initiative and his administration’s vision to grow value from the nation’s abundant gas assets, while concurrently eliminating gas flaring and accelerating industrialization. 

“This event is highly significant to our country as it demonstrates the administration’s concerted efforts to accelerate the development of critical gas infrastructure geared at significantly enhancing the supply of energy to boost industrial growth and create employment opportunities.

“It is pleasing that when these projects become fully operational, approximately 500MMscf of gas in aggregate will be supplied to the domestic market from these two gas processing plants, which represents over 25% incremental growth in gas supply. 

“In practical terms, this is more gas to the power sector, gas-based industries, and other critical segments of the economy. I, therefore, commend the strategic vision of the NNPC Limited and its partners, Sterling Oil Exploration & Energy Production Company Limited (SEEPCO) and Seplat Energy Plc, for this laudable and value-adding projects,” President Tinubu said.

The President said his government remains determined in its bid to leverage the nation’s vast gas capacity to drive economic growth. 

“Aside from the presidential CNG initiative which is aimed at moving the good people of Nigeria away from petrol and diesel as vehicular combustion fuel, significant progress has also been recorded in incentivizing gas development through Presidential Directives.

“The theme of this inauguration – ‘From Gas to Prosperity; Renewed Hope’, must be adopted by all gas-sector participants and would-be investors as a clarion call to ramp up efforts to accelerate investment and developments of projects in the gas sector on a win-win basis.

“I would once again commend the efforts of NNPC Ltd, alongside SEEPCO and Seplat Energy, on this business partnership initiative, and congratulate you all on the successful implementation of the three projects,” the President said.

President Tinubu also reiterated his government’s resolve to continue to provide support in deepening domestic gas utilization, increase national power generation capacity, revitalize industries, and create multiple job opportunities for economic growth.

“Today, I have the singular honour to inaugurate the expansion of the AHL Gas Processing Plant, the ANOH Gas Processing Plant, and the 23.3Km ANOH to Obiafu-Obrikom-Oben (OB3) Custody Transfer Metering Station Gas Pipeline Projects in line with my administration’s resolve to provide energy for Nigerians, and to use our vast natural gas resources to transform Nigeria,” the President stated.

May 15, 2024

Continue Reading

Read Our ePaper

Top Stories

SPORTS1 day ago

Para Badminton: Bolaji, Chigozie qualify for Paris 2024 Paralympics

ShareThe duo of Mariam Eniola Bolaji and Jeremiah Chigozie have qualified for the Paris 2024 Paralympic Games coming up from...

NEWS1 day ago

FCTA Moves to Curb Medical Tourism

ShareBy Laide Akinboade, AbujaFederal capital Territory Administration (FCTA) has pledged to provide the necessary support for the successful completion and...

NEWS1 day ago

Ortom, Ode, Asemakaha Felicitates  With Alia on 58th Birthday

ShareFrom Attah Ede, Makurdi  Former Governor of Benue State, Chief Samuel Ortom, the incumbent Deputy Governor, Barr Sam Ode and...

BUSINESS1 day ago

NAICOM, RMAFC Collaborate on Economic Diversification

ShareBy Tony Obiechina, AbujaThe Commissioner for Insurance/CEO, Mr. Olusegun Ayo Omosehin, and his management team have met with the members...

BUSINESS1 day ago

22,000 Beneficiaries to Get N50,000 Nano Businesses Grant in Kogi

ShareFrom Joseph Amedu, LokojaNo fewer than 22,000 beneficiaries in Kogi will get N50,000 each, under the Presidential Conditional Grant Scheme...

dailyasset-greetings dailyasset-greetings
NEWS1 day ago

CBN Unveils Strategy to Boost Remittances

ShareBy Tony Obiechina, AbujaThe Central Bank of Nigeria (CBN) has activated plans to double foreign-currency remittance flows through formal channels...

BUSINESS1 day ago

Accountant General Declares N318.5b Revenue Inflow in First Quarter

ShareBy Ubong Ukpong, AbujaThe Accountant General of the Federation, Mrs Oluwatoyin Madein on Wednesday said total revenue inflows to the...

POLITICS1 day ago

Senate Charges Army, Police to Increase Presence in Uzo-Uwani to Forstall Peace

ShareBy Eze Okechukwu, AbujaThe Senate yesterday charged the Inspector General of Police (IGP) Kayode Egbetokun and Chief of Army Staff...

POLITICS1 day ago

Ebonyi LG Polls: EBSIEC Gives 3rd June Ultimatum for Political Parties to Conclude Primaries

ShareBy Godwin Okeh, AbakalikiEbonyi State Independent Electoral Commission, EBSIEC, on Wednesday gave 3rd June 2024 ultimatum for all political parties...

POLITICS1 day ago

Reps Member Calls for Urgent Intervention in Federal Teaching Hospitals

ShareBy David Torough, AbujaThe Chairman, House of Representatives Committee on Health Institutions, Amos Magaji has called for an urgent financial...

Copyright © 2021 Daily Asset Limited | Powered by ObajeSoft Inc