Federal Government May Pay Salaries and Welfare Through eNaira

The Federal Government may soon begin paying salaries, pensions, and social welfare benefits through the eNaira as part of a major push by the Central Bank of Nigeria (CBN) to expand the use of the country’s digital currency and reposition it as a key payment system nationwide.

The proposal is outlined in the Nigeria Payments System Vision 2028, a new roadmap released by the CBN, which sets out plans to move the eNaira from its current pilot stage into a fully integrated payment infrastructure used for both public and private transactions.

Launched in October 2021, the eNaira was introduced as Africa’s first central bank digital currency, designed to promote financial inclusion, reduce transaction costs, support remittances, and advance Nigeria’s shift toward a cashless economy. Despite these goals, adoption has remained relatively limited, with usage still below expectations after several years in circulation.

Under the new framework, the CBN says it plans to strengthen the role of the digital currency by identifying practical, high-impact use cases. These include government-to-person payments, payroll processing, micro-enterprise support, and offline payment solutions that can function even in areas with limited internet access.

A central feature of the proposal is the possibility of routing government disbursements—such as salaries, pensions, and conditional cash transfers—through the eNaira system. The goal, according to the CBN, is to improve efficiency, reduce leakages, and expand access to digital financial services across the country.

The document also highlights the concept of programmable money, which would allow the eNaira to carry built-in conditions such as time limits on spending, restricted usage for specific purposes, automated payment splitting, and the creation of sub-wallets. These features, the CBN notes, could enhance transparency and improve targeted financial interventions.

Beyond domestic payments, the central bank is also exploring how the eNaira could support broader financial market operations, including settlement systems, banking transactions, and tokenised assets such as bonds and securities. Officials say this could help make financial transactions faster, cheaper, and more efficient.

CBN Governor Olayemi Cardoso, in the foreword to the policy document, said the Payments System Vision 2028 is designed to strengthen Nigeria’s position as a leading digital payments hub while improving efficiency, resilience, and inclusion across the financial system. He emphasized the importance of modern infrastructure, stronger regulation, and deeper collaboration among stakeholders in achieving these goals.

Despite millions of registered wallets and transaction volumes estimated at about ₦22 billion, the CBN acknowledged that the eNaira has not yet achieved widespread use in everyday commerce. Challenges include limited merchant acceptance, weak integration with fintech and banking platforms, and the absence of active cross-border CBDC payment networks.

To address these gaps, the CBN plans to reposition the eNaira toward government payments, remittances, and trade settlements while also opening application programming interfaces (APIs) to encourage fintech integration. The bank also intends to launch pilot programs for cross-border CBDC transactions with selected trade and remittance partners.

The roadmap reflects a broader global trend, as more than 130 countries are currently exploring or developing central bank digital currencies in response to the rapid evolution of digital payments and financial technology.

If fully implemented, the CBN’s strategy could significantly expand the role of the eNaira in Nigeria’s economy, transforming it from a relatively underused digital experiment into a central pillar of the country’s financial system.