The document discusses the eNaira, Nigeria's digital currency. It defines the eNaira, compares it to cryptocurrency and money in a bank account, outlines the types of eNaira wallets and their features, and details the benefits and concerns of adopting the eNaira. The document also lists opportunities and pitfalls for small businesses related to the eNaira and provides a brief overview of other countries that have implemented digital currencies. The author is introduced as the CEO of a peer-to-peer lending platform with experience in consulting and strategy.

1. eNaira: Opportunities &
Pitfalls for Small Businesses
By Babatunde Akin-Moses

2. Content
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• What is the eNaira?
• Types of eNaira Wallets
• eNaira Vs Cryptocurrency
• eNaira Vs Naira in your bank account
• Benefits of eNaira
• eNaira Concerns
• Other countries
• eNaira Opportunities
• eNaira Pitfalls

3. About me
• CEO Sycamore – peer to peer lending
platform
• Ex-consultant with KPMG and PwC
• Ex-strategy at Pezesha Nairobi
• Economist, accountant and MBA
• Hobbies: reading, writing, movies,
music and table tennis
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4. What is the
eNaira?
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5. 5
What is the eNaira?
Question Answer
Cryptocurrency?
Same as money in the
bank?
Digital currency?
The eNaira is a digital
currency developed by
the Central Bank of
Nigeria (CBN). It is
meant to compliment
the Naira as a digital
counterpart.
No
No
Yes

6. 6
Types of eNaira Wallets
Wallet 1:
•No bank account needed
•Phone and NIN needed
•Can send and receive up to N50,000 daily
•Cumulative balance of N300,000 daily
Wallet 2:
•Bank account needed
•Phone and BVN needed
•Can send and receive N200,000 daily
•Cumulative balance of N500,000 daily
Wallet 3:
•Merchant wallet
•Can send and receive N1,000,000 daily
•No limit on the daily cumulative balance

7. 7
eNaira Vs Cryptocurrency
The eNaira and Cryptocurrencies are digital currencies, meaning that they
have no physical form. However, there are a couple of differences between
them, such as;
The eNaira is tied to the Naira and will rise and fall as the
Naira does, while cryptocurrencies are not tied to any fiat
and so are highly volatile
Volatility
The eNaira is controlled and managed by the CBN , while
cryptocurrencies like the Bitcoin are decentralized.
Centralization

8. 8
eNaira Vs Naira in your bank account
Form of existence
• eNaira exists only in digital
form. Money in the bank
exists in paper and digital
form
Transfer Mechanism
• The eNaira moves digitally
from wallet to wallet, while
regular Naira moves from
via accounts or cash (or
account to wallet)

9. 9
Benefits of the eNaira
Cost of printing money
by the government will
reduce
People will spend less on
transaction costs as
wallet-to-wallet transfers
are free (for now)
It will be possible for the
government to credit
citizens directly without
intermediaries for
intervention programs
Government will have
more oversight to
monitor transactions

10. N58.6 billion
CBN cost of printing Naira notes in 2020
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Quiz

11. 11
eNaira Concerns
Privacy
•Will the government always
know and have direct access to
my money?
Financial Inclusion
•Given that most eNaira wallets
require BVNs, how much will it
improve financial inclusion?

12. Other countries with digital currencies
Nigeria is the first African country to launch a digital currency. Here are 5
countries around the world that have digital currencies too.
• The Bahamas
• St. Kitts and Nevis
• Antigua and Barbuda
• Saint Lucia
• Grenada
Countries such as China, Sweden and South Korea are in pilot stage with
their Central Bank Digital Currencies (CBDCs) and preparing a possible full
launch.

13. 13
eNaira Opportunities
Alternative payment channels for customers
Possibility to reduce prices from cost savings
Business opportunity as a merchant: helping people get cash for example
Thought leadership and provision of educational materials
Competitive edge for Fintechs who adopt for faster transactions

14. 14
eNaira Pitfalls
Still needs phone (smart or feature)
Requires BVN or NIN for onboarding
May compete with Fintechs (and some banks) who do not
embrace
May need agent network to reach the unbanked

15. Thanks!
Q&A
tunde@sycamore.ng
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