The Central Bank of Nigeria (CBN) has issued guidelines on how the state-backed digital currency (e-Naira) will be regulated, designed, and issued among citizens. The Central Bank Digital Currency (CBDC) is scheduled for an October 1 launch date - which also happens to be the country's independence day.

The e-Naira is expected to be a legal tender for Nigerians, as it will be accessible to both bank account and non-account holders, according to a CBN presentation.

Consumer Wallets

For the October launch, a three-tier consumer “speed wallet” system will be circulated by the apex bank before banks and other licensed operators can then provide customers their own wallets for the e-Naira.

Tier 1 wallet is open to anyone without a bank account. It also comes with a transfer limit of ₦50,000 and a cumulative balance of ₦300,000 fixed daily. The minimum requirement to open this wallet is a National Identity Number (NIN).

For the tier 2 wallets users, an existing bank account and a linked bank verification number (BVN) is the minimum requirement for this level. Users are, however, restricted to sending and receiving ₦200,000 daily and having a balance of ₦500,000.

Tier 3 wallet holders can transact up to ₦1,000,000 daily with the cumulative balance set at ₦5,000,000. A linked BVN is also needed to get this wallet category.

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Transaction limits on merchant-level wallets are also set at ₦1,000,000 per day, though there are no limits to how much users can have in their accounts.

Zero charges

The e-Naira also has a non-interest- bearing CBDC status. Also, there won’t be charges on merchant services, user-to-merchant, and peer-to-peer wallet transactions. 

Banks have also been asked to invite their customers to register for the e-Naira after its launch in October. "(Nigerian banks are to) market and promote the adoption of eNaira as a digital version of cash to existing and potential customers, in support of financial inclusion objective of the CBN,” a statement by the apex bank reads.