eNaira payments could be used for salaries, pensions and welfare benefits under a new CBN roadmap to expand digital currency adoption

The Central Bank of Nigeria (CBN) has unveiled plans to expand the use of the eNaira by potentially deploying the digital currency for the payment of government salaries, pensions and social welfare benefits under its Nigeria Payments System Vision 2028.

Also read: CBN issues tough foreign exchange penalty boost

The proposal is contained in the apex bank’s newly released roadmap, which seeks to transform the eNaira from a pilot initiative into a core payment rail for both public and private sector transactions.

Under the plan, eNaira Payments would be integrated into government-to-person disbursements, payroll processing, offline transactions and support systems for micro-enterprises as part of broader efforts to deepen digital financial inclusion and improve payment efficiency.

The eNaira, launched in October 2021 as Africa’s first central bank digital currency, was designed to promote a cashless economy, lower transaction costs and improve access to financial services.

However, adoption has remained below expectations despite years of regulatory backing.

In the Nigeria Payments System Vision 2028 document, the CBN said it would review and strengthen the existing framework governing the digital currency to better align it with operational realities and market demands.

“Transition CBDC from pilot to core payment rail through defined use cases,” the bank stated in the document.

According to the roadmap, government salaries, pensions, conditional cash transfers and other public-sector payments could eventually be processed through the eNaira platform, creating a powerful new channel for public disbursements.

The document also highlighted the advanced capabilities of the digital currency, particularly its programmable-money features.

The CBN explained that the technology could allow authorities and users to apply spending conditions, time restrictions, payment splitting arrangements and dedicated sub-wallet structures.

“The ‘programmable money’ feature of digital currency could have additional features such as time-limits, purpose-specific usage, splitting payments, sub-wallets, etc.,” the bank stated.

Beyond retail payments, the apex bank said the digital currency could strengthen Nigeria’s financial market infrastructure by supporting settlement systems, tokenised assets, bonds and securities while reducing transaction costs and processing times.

CBN Governor Olayemi Cardoso said the Payments System Vision 2028 was designed to reinforce Nigeria’s position as a leading digital payments market by improving efficiency, resilience and inclusiveness across the financial ecosystem.

“PSV2028 sets clear strategic priorities: modernising payments infrastructure, strengthening regulatory and supervisory frameworks, accelerating the adoption of digital financial services, and fostering deeper collaboration across stakeholders,” Cardoso wrote in the foreword to the document.

The CBN’s Deputy Governor for Economic Policy, Dr Muhammad Abdullahi, said the vision would deepen existing digital payment initiatives while encouraging the adoption of emerging technologies capable of expanding financial services.

“The PSV2028 seeks to deepen and scale these initiatives, while also assessing and adopting new technologies capable of expanding the reach, functionality and quality of financial services,” Abdullahi said.

Despite recording millions of wallet registrations and transactions worth approximately N22 billion, the CBN acknowledged that widespread adoption of the eNaira remains limited.

The bank attributed the challenge to low merchant acceptance, insufficient integration with banking and fintech platforms, and the absence of operational cross-border CBDC payment corridors.

To address these obstacles, the apex bank said it would reposition eNaira Payments around government disbursements, remittances and trade settlements while opening application programming interfaces to encourage fintech integration.

The roadmap also proposes bilateral CBDC corridor pilots with major trade and remittance partners to facilitate faster and more efficient cross-border transactions.

“Reposition eNaira for G2P, remittances, trade settlement; open APIs for Fintech integration; launch bilateral CBDC corridor pilots with priority trade/remittance partners,” the document stated.

The latest initiative reflects growing global interest in central bank digital currencies, with more than 130 countries currently researching, testing or developing their own digital currency systems.

Also read: CBN unveils stronger FX manual to boost market confidence

If implemented, the proposal could mark a significant turning point for eNaira Payments, potentially placing the digital currency at the centre of Nigeria’s public payment and financial inclusion strategy.