FG May Pay Salaries, Pensions Through eNaira as CBN Unveils New Digital Currency Expansion Plan

The Federal Government could soon begin disbursing workers’ salaries, pensions, and social welfare benefits through the eNaira platform as part of a broader strategy by the Central Bank of Nigeria (CBN) to deepen the adoption of the country’s digital currency.

The proposal is contained in the Nigeria Payments System Vision 2028, a newly released roadmap designed to strengthen the nation’s digital payment ecosystem and position the eNaira as a key component of everyday financial transactions.

The eNaira, launched by the CBN in October 2021, was introduced as Africa’s first central bank digital currency (CBDC). The initiative was aimed at promoting financial inclusion, reducing transaction costs, facilitating seamless money transfers, and accelerating Nigeria’s transition to a cashless economy.

However, despite the ambitious goals that accompanied its launch, the digital currency has struggled to gain widespread acceptance among Nigerians, with adoption rates remaining below expectations.

In a renewed effort to increase its relevance and usage, the apex bank is proposing a significant expansion of the eNaira’s role within the country’s financial system. According to the roadmap, the CBN plans to move the platform beyond its pilot phase and transform it into a major payment channel for both public and private sector transactions.

The bank disclosed that it intends to review and update the framework governing the eNaira to ensure that it aligns with current market realities, technological developments, and user expectations.

One of the most notable proposals under the new plan is the use of the eNaira for government-to-person payments. This could see public-sector salaries, pensions, conditional cash transfers, student support programmes, and other government welfare payments being processed through the digital currency platform.

The roadmap also identifies salary administration, offline payment capabilities, and support for micro, small, and medium-sized enterprises (MSMEs) as key areas where the eNaira could play a larger role.

In addition, the CBN highlighted several advanced features embedded in the digital currency that could enhance transparency and efficiency in the distribution of public funds.

According to the bank, the eNaira supports programmable payment functions, allowing funds to be assigned for specific purposes. These features could enable authorities to set spending deadlines, restrict the use of funds to approved transactions, automatically split payments among beneficiaries, and create dedicated digital wallets for different categories of expenses.

Financial experts say such capabilities could improve accountability in government disbursements and reduce leakages in social intervention programmes if properly implemented.

As the CBN pushes forward with its digital payment agenda, analysts believe the success of the eNaira’s next phase will depend largely on public trust, user education, technological reliability, and the availability of incentives that encourage Nigerians to embrace the platform.

If implemented, the proposal would mark one of the most significant expansions of the eNaira since its introduction, potentially making it a central tool in the payment of government obligations and the broader digital transformation of Nigeria’s economy.