Nigeria’s president says CBDC could increase the GDP by $29 billion in 10 years.

The Nigerian president, Muhammadu Buhari, said in a recent speech that the new e-naira central bank digital currency (CBDC) could increase the value of the country’s GDP by $29 billion in ten years. “Indeed, some estimates indicate that the adoption of CBDC and its underlying technology, called blockchain, can increase Nigeria’s GDP by US$29 billion over the next ten years,” the president said.  

A CBDC might help move more people and businesses from the informal sector to the formal sector.

Although he acknowledges that many countries are still in the research and experimental stages, the Nigerian leader insists that the Central Bank of Nigeria (CBN) — which he says has been working on CBDCs since 2017 — is well-positioned to launch the digital currency. In addition to boosting Nigeria’s GDP, President Buhari further suggested that such a CBDC might help move more people and businesses from the informal sector to the formal sector. In his speech, published by Premium Times, Buhari gives his reasons for approving the CBN’s request to explore the possibility of issuing what is now Africa’s first CBDC. 

e-naira could increase remittances, foster cross-border trade, and improve financial inclusion.

According to the president, it is on the basis of this payment system — as well as the central bank’s support of several private‐sector initiatives to improve the existing payments landscape — that CBN is qualified to issue the e-naira. However, despite his high praise of Nigeria’s financial system, President maintained the pilot phase of the CBDC rollout would need to be closely monitored and supervised. Finally, when successfully tested, the e-naira is expected to help increase remittances, foster cross-border trade, improve financial inclusion, and make monetary policy more effective.