eNaira launch: Digital currency will boost Nigeria’s GDP by $29bn in 10 yrs  -Buhari

 

.Celebrate our troops with pride, President urges Nigerians

.’Foreign envoys should be guided by diplomatic practices in 2023 polls’

 The adoption of the Central Bank Digital Currency (CBDC) and its underlying technology, called block chain, can increase Nigeria’s GDP by $29billion over the next 10 years, President Muhammadu Buhari said Monday in Abuja at the official launch of the eNaira.

The President also declared that the introduction of the eNaira would enable the government to send direct payments to citizens eligible for specific welfare programmes as well as foster cross border trade.

President Buhari said that alongside digital innovations, CBDCs can foster economic growth through better economic activities, increase remittances, improve financial inclusion and make monetary policy more effective.

”Let me note that aside from the global trend to create Digital Currencies, we believe that there are Nigeria-specific benefits that cut across different sectors of, and concerns of the economy.

”The use of CBDCs can help move many more people and businesses from the informal into the formal sector, thereby increasing the tax base of the country,” he said.

The President said with the launch of eNaira, Nigeria has become the first country in Africa, and one of the first in the world to introduce a Digital Currency to her citizens.

He commended the Governor of the Central Bank, Godwin Emefiele, his deputies and the entire team of staff who worked tirelessly to make the launch of Africa’s first digital currency a reality.

The President, who assured Nigerians of the safety and scalability of the CBDC system, said the journey to create a digital currency for Nigeria began sometime in 2017.

”Work intensified over the past several months with several brainstorming exercises, deployment of technical partners and advisers, collaboration with the Ministries of Communication and Digital Economy and its sister agencies like the Nigerian Communications Commission (NCC), integration of banking software across the country and painstaking tests to ensure the robustness, safety and scalability of the CBDC System, ” he said.

The President also used the occasion of the unveiling of the eNaira to painstakingly explain to Nigerians why he approved the use of the digital currency.

”In recent times, the use of physical cash in conducting business and making payments has been on the decline. This trend has been exacerbated by the onset of the COVID-19 pandemic and the resurgence of a new Digital Economy.

”Alongside these developments, businesses, households, and other economic agents have sought for new means of making payments in the new circumstances.

”The absence of a swift and effective solution to these requirements, as well as fears that Central Banks’ actions sometimes lead to hyperinflation created the space for non-government entities to establish new forms of “private currencies” that seemed to have gained popularity and acceptance across the world, including here in Nigeria.

”In response to these developments, an overwhelming majority of Central Banks across the world have started to consider issuing digital currencies in order to cater for businesses and households seeking faster, safer, easier and cheaper means of payments.

”A handful of countries including China, Bahamas, and Cambodia have already issued their own CBDCs.

”A 2021 survey of Central Banks around the world by the Bank for International Settlements (BIS) found that almost 90 per cent are actively researching the potential for CBDCs, 60 percent were experimenting with the technology and 14 per cent were deploying pilot projects.

”Needless to add, close monitoring and close supervision will be necessary in the early stages of implementation to study the effect of eNaira on the economy as a whole.

”It is on the basis of this that the Central Bank of Nigeria (CBN) sought and received my approval to explore issuing Nigeria’s own Central Bank Digital Currency, named the eNaira,’’ he said.

Equally, the Nigerian leader noted that his approval was also underpinned by the fact that the CBN has been a leading innovator ‘‘in the form of money they produce, and in the payment services they deploy for efficient transactions.’’

He noted that Nigeria’s apex bank has invested heavily in creating a Payment System that is ranked in the top ten in the world and certainly the best in Africa.

”This payment system now provides high‐value and time‐critical payment services to financial institutions, and ultimately serves as the backbone for every electronic payment in Nigeria.

”They have also supported several private‐sector initiatives to improve the existing payments landscape, and in turn, have created some of the world’s leading payment service providers today,’’ he said.

In his remarks, the CBN Governor explained that eNaira is Nigeria’s CBDC and it is the digital equivalent of the physical Naira.

”As the tagline simply encapsulates, the eNaira is the same Naira with far more possibilities. The eNaira – like the physical Naira – is a legal tender in Nigeria and a liability of the CBN. The eNaira and Naira will have the same value and will always be exchanged at 1 naira to 1 eNaira,” he said.

Emefiele added that the CBN has given careful consideration to the entire payments and financial architecture and has designed the eNaira to complement and strengthen these ecosystems and has implemented secure safeguards and policies to maintain the integrity of the financial system.

He pledged that there would be strict adherence to the anti-money laundering and combating the financing of terrorism (AML/CFT) standards in order to preserve the integrity and stability of Nigeria’s payment system.

According to Emefiele, since the eNaira platform went live, there has been overwhelming interest and encouraging response from Nigerians and other parties across the world with over 2.5 million daily visits to the website.

He listed the following milestones: ”33 banks are fully integrated and live on the platform, 500 million has been successfully minted by the Bank, N200 million has been issued to financial institutions, over 2,000 customers have been onboarded and over 120 merchants have successfully registered on the eNaira platform”.

The CBN governor also used the occasion to commend President Buhari for making history, yet again, with the launch of the eNaira – the first in Africa and one of the earliest around the world.

He also dispelled fears on the nation’s foreign reserves, saying the reserves are strong and getting stronger by the day.

”Mr. President, as you make ground breaking reforms, there have been continuing debate on the true value of the Naira. Rather than worry today on the direction of the exchange rate, let us take a step back and analyze how we got here in the first place.

”Please recall that since the advent of the International Monetary Fund (IMF) led Structural Adjustment Programme (SAP) in 1986, and the introduction of the Second Tier Foreign Exchange (SFEM) market, the Naira has been on a one-way free fall from parity to the US Dollar in 1984 to over N410/USD today.

‘Some 35 years later, we have not been able to achieve the many promises and objectives of that programme.

”Instead, what we have seen is widespread import dependency, which has wiped out most of our production and manufacturing bases and exported all our jobs in the process.

”What has happened to the massive textile factories across our nation such that we import almost all cotton products when we are rich in cotton?

‘What has happened to our vehicle assembly plants across the nation such that we import most vehicles and have become a massive dumping ground for dying second-hand vehicles?

”What has happened to our rubber plantations through which we made the best tyres and rubber products in the world? What has happened to our groundnut pyramids? What has happened to our Cocoa farms? What has happened to our palm oil mills?

”Under your leadership, Mr. President, we must stop this decline for good! We must return to massive homemade production; we must get our people working again. We must create the economic environment for massive domestic production and significant non-oil exports.

”As custodians of your national reserves, let me first assure you that there is no cause for alarm. Our FX reserves are strong and indeed getting stronger by the day, crossing the 40 billion USD mark, and is one of the highest in Africa – and growing.

”But we cannot fritter our reserves away on cheap imports and currency speculators. We must return to an employment-led growth anchored on productivity and rewarding producers of local goods, services, innovation and new technologies.

”If you consume cheap imports and export our jobs, we will make you pay dearly; but if you produce locally – with little or no foreign inputs beyond machinery, we will support you, and the markets will reward you abundantly,” he said.

In addition to all policies and actions of the CBN to support the economy especially through the trying times of COVID-19, Emefiele announced a new financial instrument titled “The 100 for 100 PPP – Policy on Production and Productivity”, which will be anchored in the Development Finance Department under his direct supervision.

He explained that under this policy the CBN would advertise, screen, scrutinize and financially support 100 targeted private sector companies in 100 days, beginning from 01 November 2021, and rolling over every 100 days with new set of 100 companies, whose names will be published in National Dailies for Nigerians to verify and confirm.

Meanwhile, President Muhammadu Buhari Monday in Abuja lauded the exploits of the Nigerian Armed Forces to maintain peace, unity and stability in the country, urging Nigerians to celebrate them as the pride of the country.

The President gave the charge at the 2022 Armed Forces Remembrance Day emblem appeal launch, an annual event to appreciate the gallantry, sacrifices and accomplishments of veterans of the first and second world wars, peace support operations and internal security operations in Nigeria.

Paying tribute to veterans who devoted most of their active lives to securing the nation and the world, particularly those who paid the supreme sacrifice, President Buhari said:

”Our country’s efforts at nationhood since independence have been challenged by civil strife, a civil war and much uprising and violent agitations.

”However, in spite of all these, the country has remained united and the resolve of the citizens for unity remains unshaken.

”The exploits of our Armed Forces to maintain peace as well as their disposition to the unity of Nigeria have contributed in no small measure to our stability.

”We must therefore celebrate them as the pride of our country. Our faith in our Armed Forces remains unshaken and as a government we will do all within our powers to ensure that our Armed Forces are motivated to perform optimally.

”They have time and again demonstrated unparalleled patriotism, courage, loyalty and commitment as they grapple with the daunting challenges of defending Nigeria’s territorial integrity.”

President Buhari said the Nigerian Armed Forces have effectively applied themselves to countering all the attempts by the nation’s enemies to disturb the peace, noting that places that were hitherto inaccessible and deserted have now been occupied by citizens who have returned to their normal homes.

He declared that the renewed onslaught on bandits in the Northwest has resulted in the military daily receiving insurgents who are voluntarily laying down their arms.

”We are not going to be satisfied until peace is finally restored to every inch of our land,” he declared.

President Buhari described the emblem as a sign of the sacrifices and blood shed by officers and men of the Armed Forces for peace and security of Nigeria.

”It is also a sign of our resolve to remain united as a nation and confront any challenges we may face. It is a sign of our resolve to say no to divisions and embrace one another as a united indivisible country,” he said.

The President called on all Nigerians to make generous donations to the Nigerian Legion, support the widows and orphans of the fallen heroes, procure the emblems and wear them with pride.

”The same call goes to all visitors and friends of Nigeria as well as corporate bodies operating in Nigeria,” he said.

On the Nigerian Legion, the President noted that the need to maintain the comradeship that existed during the service among officers and men of the Armed Forces led to its establishment through an Act of the National Assembly.

He commended the Nigerian Legion for living up to its mandate of catering for the welfare of ex-servicemen and those that distinguished themselves in the wars Nigeria participated in.

The President stated that the veterans’ organisation has remained a veritable pool of abundant and diverse human resources.

”I have the pleasure to acknowledge the contributions of retired officers and men of the Nigerian Armed Forces to the ongoing war on insurgency.

”The government will continue to welcome these vital contributions. I charge the Ministry of Defence to continue to promote the engagement of our retired officers and men in seeking avenues of contributing to our national affairs.

”I am glad to note that the Nigerian Veterans have contributed to the socioeconomic development of our country through engagement in productive ventures thereby generating employment opportunities for themselves and other Nigerians.

”This is a further testimonial to the patriotism of these Nigerians. They have demonstrated abiding faith in Nigeria and its development. We sincerely commend them and all Nigerians who have continued to believe in Nigeria by making it their investment destination,” he said.

The President pledged that the welfare of the ex-servicemen would continue to be a priority for the government, particularly the prompt and regular payment of pensions and benefits to retirees.

”We are committed to making life more meaningful to all retirees. To this end, we shall, within the limits of available resources, ensure payment of all liabilities arising from increments made to the pensions of ex-servicemen.

”We enjoin all to remain steadfast and committed to our country,” he said.

Also, In the build-up to the 2023 general elections, President Muhammadu Buhari Monday in Abuja urged foreign envoys in Nigeria to be guided by diplomatic practices to ensure that their activities remain within the limits of their profession.

Receiving Letters of Credence at State House from the Ambassadors of Japan, European Union, Burundi, Denmark, Finland, Ireland, Cape Verde, France, Qatar; and High Commissioners of Sierra Leone and Ghana, the President told them that they were assuming diplomatic responsibilities in Nigeria at a very interesting political period.

‘‘Nigeria’s national elections are due in early 2023. The momentum for enhanced political activities is therefore expected to commence soon.

‘‘The nature of our politicking often gives the impression of very rancorous engagements. It is the nature of politics here. Besides, democracy and related democratic activities in the build-up to elections are necessarily rowdy and very argumentative, but very much within the limits of freedom of action that the art of democracy permits.

‘‘As you settle down in the face of these developments, it is my hope that you will also be guided by diplomatic practices, to ensure that your activities remain within the limits of your profession,’’ President Buhari said.

The President told the newly accredited envoys that he looked forward to a more robust relationship with each of their countries.

He declared that Nigeria is open to more foreign direct investments in the Education, Health, Transportation and Agricultural sectors, and would welcome improved bilateral relations, especially in wider trading and cultural contacts.

The President acknowledged that while Nigeria enjoys very cordial bilateral relations with the aforementioned countries, their diplomatic representatives must work harder to enhance this level of relationship in the interest of the peoples of our countries.

it  is my hope that, as you settle down to your responsibilities of promoting unity, amity, enhanced understanding, better economic opportunities and the pursuit of peace between your respective countries and the Federal Government of Nigeria, you will make it a point of duty to appreciate our country’s diversity as a source of not only pride but advantage as we are definitely stronger together.

‘‘You will find in us as people, the level of vibrancy that defines us, as uniquely Nigerian, eager to make friends, learn other people’s way of living and imbued with great appetite for adaptation.

‘‘Excellencies, the world will definitely be a better place and much easier place to live in if all cultivate the culture of patience and tolerance in order to appreciate the values of each of us and the contributions that we all can make, for sustainable peace and development, globally,’’ he said.

On security, President Buhari told the ambassadors that more partnerships were needed to fully overcome daunting challenges in the country.

‘‘As a Government and as a nation, we continue to make steady progress despite daunting challenges, notably in the area of security.

‘‘Different factors accounted for this, amongst which are, first, that insecurity linked to terrorism, banditry, kidnapping, cybercrimes, and maritime issues, are transborder acts that go beyond the abilities of any single country to effectively contain.

‘‘That is why, matters of security have become the business of all the nations of the world to work together to overcome. Second, our borders are very long and porous, and their effective policing has become a daunting challenge.

‘‘Third, easy circulation of small arms and light weapons, from the Sahel-Libya axis and the Central African region, have made access to these weapons readily available which inevitably compounds our national and regional security.

‘Despite these huge challenges, concerted efforts by Government and our Armed Forces have accounted for the largely degraded capacities of terrorists across the country,’’ he said. The newly accredited Ambassadors are Matsunaga Kazuyoshi (Japan), Leena Pylvanainen (Finland), Samuela Isopi (European Union), Maria Jeanne Ntakirutimana (Burundi) Monsieur Sune Krogstrup (Denmark), Sile Maguire (Ireland), Belarmino Silva (Cape Verde), Ali Ghanem Ali Alfahed Alhajri (Qatar) and Emmanuella Blatmann (France).

The High Commissioners are Sydney Dowu Davies (Sierra Leone) and Alhaji Rashid Bawa (Ghana).

Speaking on behalf of the Ambassadors, the Japanese Ambassador pledged that they are willing to strengthen existing bilateral relations with Nigeria, assuring that they would work together and explore ways to defeat the COVID-19 pandemic.