Nigeria May Pay Salaries via eNaira as CBN Pushes Digital Currency Expansion

Nigeria May Pay Salaries via eNaira as CBN Pushes Digital Currency Expansion

The Federal Government is considering a major shift in how salaries, pensions, and social welfare payments are made, with plans to potentially route them through the eNaira, Nigeria’s central bank digital currency (CBDC).

This proposal is part of the Central Bank of Nigeria’s (CBN) broader Nigeria Payments System Vision 2028, which aims to transform the eNaira from a limited pilot project into a fully integrated national payment system.

Launched in October 2021 as Africa’s first CBDC, the eNaira was designed to boost financial inclusion, reduce transaction costs, and support a cashless economy. However, adoption has remained relatively low despite regulatory backing and ongoing promotion.

Under the new roadmap, the CBN plans to “transition CBDC from pilot to core payment rail,” with key use cases including government-to-person payments, payroll processing, conditional cash transfers, offline transactions, and support for small businesses.

If implemented, this would mean salaries, pensions, and other public-sector payments could be processed directly through the eNaira platform, potentially improving efficiency and reducing payment delays.

The document also highlights advanced “programmable money” features, allowing digital currency to be customized with conditions such as time limits, purpose-specific usage, payment splitting, and sub-wallet systems.

Beyond domestic payments, the CBN envisions the eNaira playing a role in financial markets, including settlement systems, bond trading, and tokenised assets, with faster and cheaper transaction capabilities.

CBN Governor Olayemi Cardoso stated that the vision aims to modernize Nigeria’s payment infrastructure while strengthening regulation and expanding digital financial services across the economy.

Despite millions of wallet registrations and transactions worth about ₦22 billion, the eNaira has struggled with low real-world usage, limited merchant adoption, and weak integration with fintech and banking platforms.

To address this, the CBN plans to open APIs for fintech integration and explore cross-border CBDC partnerships with key trading and remittance countries.

As global central banks continue to explore digital currencies, Nigeria’s move signals a renewed push to position the eNaira as a central tool in the country’s financial future.