The launch of the eNaira, Nigeria’s digital currency, has been tipped as a good move towards reducing illegal financial transactions with a view to boosting the economy.
President Muhammadu Buhari made this known on Tuesday at the 5th edition of the Future Investment Initiative Summit in Riyadh, the capital of Saudi Arabia.
Recall that on Monday, the President, during the eNaira launch in Abuja, said the currency and its underlying blockchain can increase Nigeria’s Gross Domestic Product (GDP) by $29 billion in 10 years.
He also explained that it will help move people and businesses from the informal into the formal sector, thereby increasing the tax base of the country.
Reinforcing his point in Riyadh via a statement titled, “Investing In Humanity: The Nigerian Perspective,” President Buhari noted that Nigeria is on course to “become the first African country to introduce a Central Bank Digital Currency.
“We believe this and many other reforms, will help us increase the number of people participating in the banking sector, make for a more efficient financial sector and help us tackle the illicit flow of funds.”
Buhari also explained how the digital currency is targeted at tracking ‘unmonitored’ financial transactions in Nigeria’s financial sector.
The scheme is also expected to track tax evaders as the country seeks to shore up revenue amid growing concern for its dwindling resources.
He also explained that the scheme would open up a whole new market of digital currency users for financial institutions to boost their customer base and add value to their own owners.
“To further strengthen our anti-corruption drive, increase accountability and transparency, we have centralized government funds through a Treasury Single Account and ensuring that all Nigerians with a bank account use a unique Bank Verification Number (BVN).
“These initiatives, coupled with our nationwide National Identification Number (NIN) exercise, reinforce our efforts to tackle corruption and fraud. We believe that this should give investors a lot of comfort.”