eNaira-by-CBN-Nigeia

5 Faulty Things About eNaira, Nigeria’s Digital Currency

Last Updated on October 7, 2021 by Ope Quadri

In September, we all looked forward to the launching of eNaira, Central Bank Digital Currency (CBDC) by Nigeria’s apex, but a few hours to the D-day, the CBN rescinded his decision about the launch.

While everyone who was eager about how the eNaira would help their businesses, the CBN didn’t give reason for the postponement. And no date was given for the official launch.

The website enaira.com has been running since September 28, 2021, millions of Nigerians who flooded Google Playstore and Apple Store were disappointed that the eNaira App was no where to be found.

The postponement was not new to many Nigerians, they blamed it on poor planning and many battles the project is facing behind the scene.

Below are some of the inaccuracies about eNaira project:

  1. Appointment of Foreign Contractor
  2. Use of .com instead of .ng domain
  3. Position on Blockchain
  4. Trademark infringement
  5. Poor Planning

Appointment of Foreign Contractor

With more than a dozen blockchain developers in Nigeria and across Africa, it’s unpatriotic for the Godwin Emefiele and his team to have gone as far as Barbados to appoint Bitt Inc to develop a digital currency for Nigerian use.

The excuse that the bidding process was made open is an attestation to the usual questionable ways on how government employs sons and daughters of the powerful class into federal ministries and agencies and then publish newspaper publication when the vacancies had been filled.

This isn’t only faulty, it also shows the insincerity of the apex bank at stabilising the foreign exchange market, because the CBN would have to pay for such services with millions of US dollars or other foreign currency the developer Bitt may have chosen.

Importing foreign services from abroad when such services can be sourced locally also means the committee that approved Bitt for the project have trust issue about Nigerian developers who are known around the world.

Use of .com instead of .ng domain

Those who know the implications of choosing a dot com would ask: Why not dot ng? From the domain name, it’s obvious that the CBN doesn’t care about preserving and using what belongs to Nigeria and for Nigerian people.

Besides, what stops CBN from using domain extension exclusively assigned to government and its ministries? .gov.ng domain should have been the top choice for the Emefiele-led apex bank.

There is no way a criminal could register a domain under the gov.ng, enaira.com is going to expose millions of Nigerians to several cloned websites in the days ahead, the President of Nigerian Internet Registration Association (NIRA) Muhammed Rudman was quoted as saying in Sunday Punch Column.

Position on Blockchain

The announcement by the CBN to use blockchain-backed digital currency calls to question why it banned funding of cryptocurrency-related transactions on in February 2021.

Although, it says it was to enable it monitor transactions, the move hasn’t stopped crypto enthusiasts from Nigerians as they now use Peer-To-Peer Exchange platforms, even more before the ban.

Certainly, it has been established that terrorists receive funding through bitcoin and other cyptocurrencies, but Nigerian authority has not shown enough commitment to expose the financiers of the dreaded terrorist group Boko Haram in Nigeria while in far away United Arab Emirate, sponsors of Boko Haram were jailed.

Trademark Infringement

On September 30, a few hours to Nigeria’s 61st Independence, a day scheduled for the launch, CBN’s spokesman, Mr. Osita Nwanisobi, “the planned unveiling on October 1, 2021 has now been deferred due to other key activities lined up to commemorate the country’s 61st Independence Anniversary”

A follower of enaira on Facebook Ifedolapo Akindahunsi, asked:

“Didn’t you know October 1st is independence day before you announce it as the launch date?

But those who have been following events knew that it was due to “Infringement of Trademark & Violation of Corporate Name” filed by ENaira Payment Solutions Limited against the CBN.

“For this reason, our client has approached the Federal High Court In Suit No. FHC/AB/CS/113/2021 between ENaira Payment Solutions Limited v Central Bank of Nigeria to seek restraining orders including an order to restrain the CBN from proceeding with the proposed launching on the 1st of October. 2021,” Olakunle Agbebi, lawyer to ENaira Payment Solutions Limited said.

Poor Planning

The litigation against the CBN shows that its team failed to do a name search to know if there was an existing names. If it did, ENaira Payment Solutions Limited wouldn’t have had any case against the apex bank. Though a court in Nigeria has given the CBN a nod to launch the project.

Wrapping up

Against all odds, we hope that the CBN resolves the issues on its table regarding the launch of its digital currency.

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