Emefiele Lists Limitations To A Fully Digitized Financial Ecosystem
The Governor of the Central Bank of Nigeria (CBN) Mr. Godwin Emefiele on Tuesday listed impairments stacked against widening the digital economic space that should be demolished to deepen the global competitiveness of the country.
Fidel Info reports that while speaking at the 2022 Executive Policy Seminar of the CBN themed: “Digitalisation of Money and Monetary Policy in Nigeria”, Emefiele, who was represented by the Deputy Governor of Financial Systems Stability (FSS), Mrs. Aisha Ahmad, noted that the existence of low level formal financial services, low income and financial illiteracy, underdeveloped technology ecosystem and weak infrastructure, continue to limit the potential for integration of digital financial services in Nigeria.
Without Prejudice to the success recorded so far in the digital transformation journey of the financial sector and economy in general, he inferred that there was still much work to be done. He said: “Although considerable gains have been achieved in boosting financial inclusion in Nigeria, at 64.0 per cent, the inclusion rate slows down the digital transformation wheel, as all citizens must be carried along to optimize the gains of a digital economy”.
Emefiele stated that the major turning point in the Bank’s digitization journey in the last decade, was the launch, on 25 October 2021, of the eNaira, Nigeria’s central bank digital currency (CBDC).
“The eNaira was developed to broaden the payment possibilities of Nigerians, foster digital financial inclusion, with potential for fast-tracking intergovernmental and social transfers, capital flow and remittances, among other endless possibilities.
“Since its launch, a total of N8 billion, consisting of over 700,000 transactions, has passed through the eNaira platform. As part of the Bank’s effort to further integrate and broaden the usage of the eNaira, it was assigned an Unstructured Supplementary Service Data (USSD) code, enabling payments by simply dialling ‘*997#’ on a mobile phone”.
He noted that the digitisation of money has been aided by a myriad of factors, including internet penetration; cloud computing; big data analytics; advancements in artificial intelligence; and the emergence of distributed ledger technology (DLT); among others.
“In addition to the afore-mentioned drivers, the COVID-19 pandemic also accelerated the shift to digital payments, beyond the obvious advantages of a digitally driven payment system, leading to greater economies of scale and scope, network externalities, and low marginal costs”, he stated.
JUST IN: CBN Announces Old Notes Remain Legal Tender
The Central Bank of Nigeria (CBN) has announced that old N200, N500, N1,000 bank notes remain legal tender till December 31, 2023.
Fidel Info reports that The apex bank’s Acting Director of Corporate Communications, Isa AbdulMumin made the announcement in a statement late Monday evening.
“In compliance with the established tradition of obedience to court orders and sustenance of the Rule of Law Principle that characterized the government of President Muhammadu Buhari, and by extension, the operations of the Central Bank of Nigeria (CBN), as a regulator, Deposit Money Banks operating in Nigeria have been directed to comply with the Supreme Court ruling of March 3, 2023,” the statement reads.
“Accordingly, the CBN met with the Bankers’ Committee and has directed that the old N200, N500 and N1000 banknotes remain legal tender alongside the redesigned banknotes till December 31, 2023”
“Consequently, all concerned are directed to conform accordingly.”
The statement comes after the country was thrown into confusion after the supreme court’s ruled that the old Naira notes remain Legal tender. However, with no back up statements from the president or CBN, Nigerians didn’t comply.
Agriculture And Industry Sector Reduced Nigeria’s GDP Growth In 2022- NBS
According to latest GDP data from the National Bureau of Statistics, Nigeria’s Gross Domestic Product growth decreased to 3.10 percent in 2022 from 3.40 percent in 2021.
Fidel Info reports that the NBS indicated that while the service sector’s performance increased in the year under review, growth in the economy’s agriculture and industry sectors was lowered in 2022.
Real GDP increased by 3.52 percent (year over year) in the fourth quarter of 2022. The services sector, which saw growth of 5.69% and made up 56.27% of the total GDP, was the main driver of this expansion.
In its Nigerian Gross Domestic Product Report Q4 2022, the NBS said, “Nigeria’s GDP grew by 3.52 per cent (year-on-year) in real terms in the fourth quarter of 2022, following a growth of 2.25 per cent in the third quarter of 2022 and 3.98 per cent in the fourth quarter of 2021.
“The performance of the GDP in the fourth quarter of 2022 was driven mainly by the services sector, which recorded a growth of 5.69 per cent and contributed 56.27 per cent to the aggregate GDP.”
According to the national statistics body, the agriculture sector grew by only 2.05 per cent in the period under review because of flooding experienced across the country.
It added, “Moreover, the Industry sector was yet challenged recording -0.94 per cent growth and contributing less to the aggregate GDP relative to the third quarter of 2022 and the fourth quarter of 2021.
“Overall, the annual GDP growth rate in 2022 stood at 3.10 per cent, from the 3.40 per cent reported in 2021. Thus, the performance of agriculture and Industry reduced in 2022 relative to 2021, while the performance of the Services sector improved in 2022.”
Aggregate GDP for Q4 2022 stood at N56.76tn in nominal terms, higher than the N49.28tn that was recorded in Q4 2021.
Council Of State Drums Support For Naira Redesign Policy
The Central Bank of Nigeria’s policy to redesign the naira has received approval from members of the council of state (CBN).
Fidel Info reports that in order to alleviate Nigerians’ suffering, the council requested that the CBN governor, Godwin Emefiele, make new naira notes available or reissue existing ones.
President Muhammadu Buhari presided over the gathering, which took place on Friday at the presidential palace.
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