FG Considers Paying Salaries, Pensions Through eNaira Platform

The Federal Government may begin paying salaries, pensions and social welfare benefits through the eNaira platform as part of efforts to expand the adoption of Nigeria's digital currency.

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The proposal is contained in the Central Bank of Nigeria's Nigeria Payments System Vision 2028, a policy document aimed at transforming the eNaira from a pilot initiative into a major channel for financial transactions across the country.

The eNaira, launched in 2021 as Africa's first Central Bank Digital Currency, was introduced to promote financial inclusion, reduce transaction costs and support the country's transition to a cashless economy. However, adoption has remained below expectations despite sustained regulatory support.

Under the new roadmap, the apex bank plans to reposition the digital currency as a core payment rail by introducing broader use cases across government and private-sector transactions.

The document identified government-to-person payments, payroll administration, offline transactions and support for micro-enterprises among the key areas where the eNaira could be deployed.

If implemented, salaries of public servants, pension payments, conditional cash transfers and other government disbursements could be processed through the digital currency platform.

The CBN also highlighted the advanced capabilities of the eNaira, noting that its programmable features would allow for purpose-specific payments, spending limits, payment splitting and the creation of sub-wallets for different financial activities.

According to the bank, these features could improve transparency and efficiency in the distribution of public funds while strengthening the country's payment infrastructure.

The apex bank further stated that the eNaira could support financial market operations by facilitating settlements involving banks and digital financial assets, including bonds and securities.

The proposal forms part of the broader Payments System Vision 2028, which seeks to modernise Nigeria's financial ecosystem through technology-driven payment solutions, enhanced infrastructure and wider access to digital financial services.

CBN Governor, Olayemi Cardoso, said the initiative was designed to strengthen Nigeria's position as a leading digital payments market while improving efficiency, resilience and financial inclusion.

He noted that the roadmap would focus on modernising payment systems, strengthening regulatory frameworks and accelerating the adoption of innovative financial technologies.

The CBN's Deputy Governor for Economic Policy, Muhammad Abdullahi, said the vision would deepen existing digital payment initiatives while creating room for the adoption of emerging technologies within a secure regulatory environment.

Despite recording millions of wallet registrations and transactions valued at about N22bn, the CBN acknowledged that the eNaira has yet to achieve widespread acceptance in everyday commercial activities.

The bank attributed the challenge to limited merchant adoption, weak integration with banking and fintech platforms, and the absence of operational cross-border digital currency payment corridors.

To address these challenges, the apex bank said it would expand the use of the eNaira for government payments, remittances and trade settlements while opening its application programming interfaces to fintech companies.

It also disclosed plans to explore bilateral digital currency payment arrangements with major trade and remittance partners to facilitate cross-border transactions.

The latest move comes amid growing global interest in central bank digital currencies, with many countries exploring digital alternatives to traditional cash and privately issued digital assets.