 The Central Bank of Nigeria recently sent a presentation to Nigerian banks about the E-Nirah project, revealing more details about its design and operational model. The presentation described how the new currency would be designed and operated. In fact, the report states that the E-Nirah is a legal tender for the entire country. The report also mentions that it will have non-interest-bearing CBBC status, a transaction limit for customers, and a value-based transaction. That's our main focus on the show today. Welcome to Business Insight and Plus TV Africa. I am Justin Acadone. And now to some economic news. The Monetary Policy Committee of the Central Bank of Nigeria has retained a monetary policy rate at 11.5%. The CBN governor, Gadwin Emefile, disclosed this after the committee's two-day meeting in Abuja on Thursday. It also retained the cash reserve ratio and liquidity ratio at 27.5% and 30%, respectively. Now, Nigeria's fall in inflation rate, the 14th annual conference of the Chartered Institute of Bankers of Nigeria, e-commerce and taxation, running up major headlines in business Nigeria this week. Take a look. The federal government has said that it is targeting an increase in e-commerce trading from the current market value of $13 billion to about $75 billion by 2025. The Permanent Secretary, Ministry of Industry, Trade and Investment, Dr Evelyn Ngige, who disclosed this on Tuesday in Abuja at a second national e-commerce roundtable organized by the ministry noted that e-commerce had grown from 14% in 2019 to 17% in 2020. Tax, banks and financial institutions in the country under need to focus on transformative initiatives that will impact positively on the economy. The vice president said this on Tuesday at the 14th annual banking and finance conference organized by Chartered Institute of Bankers on Nigeria in Abuja. The National Bureau of Statistics says Nigeria's inflation rate in the month of August 2021 dropped to 17.01% from 17.38% recorded in July 2021. These represent 15 consecutive decline in the rate of inflation recorded in Nigeria. This is according to the National Bureau of Statistics, MBS. The latest figure is 0.37% points lower than what it was recorded in the previous month. Meanwhile, on month-on-month basis, the headline index increased by 1.02% in August 2021. This is 0.909% higher than the rate recorded in July 2021, 0.93%. Data from the National Bureau of Statistics shows that within a three-year period covering December 2017 to December 2020, Nigeria regenerated a total sum of $6.5 trillion from non-oil exports. This sum is $5.8 trillion lower than its $12.3 trillion, $30 billion target set by the federal government under its zero-oil plan. In the fourth quarter of 2016, Nigeria Promotion Council conceived zero-oil plan to increase the contribution of non-oil exports to Nigeria's gross domestic product by 20%. The Attorney General of the Federation and Minister of Justice, Abubakar Malami, has written 36 state governors over compliance with audits and recovery of back years of stamp duty. The minister's special assistant and media and public relations, Jibrilu Gundu, made this known in a press statement titled, Stamped Duty, No Recovery Yet, as Malami writes 36 governors issued on Wednesday. According to the statement, recoveries have been conducted for the federal ministries, departments, agencies and financial institutions. And those were the render for this week. Now, the central bank of Nigeria, CBN says, is soon to be launched digital currency in Nigeria will strengthen the stability of the banking system as deposits become more diversified when people are banked. The central bank of Nigeria, digital currency will also make it easier for the banking system to comply with existing laws such as anti-money laundering, customer protection, against fraud and ensuring the safety and stability of their payment system. Joining us here this course of all of this right now is Favo Sunano, top leader, planting corn Africa. Good evening to you, Favo. Many thanks for joining us on Business Insight and Plus TV Africa. Good evening, Justine. Super excited to be here. I'm so excited to be here. All right, let us just talk more right now for people who may not ordinarily understand what the e-naira is. How different is it from crypto currency? Well, a lot of propositions have been going on around what this e-naira is all about and how it could really, really change what we already have currently. Now, according to the CBN, as much as I understand, the e-naira is, does not replace the current naira. It uses the same blockchain technology just like Bitcoin, but they say it's not a cryptocurrency. And the truth is the baseline for all cryptocurrency digital assets is the blockchain. And for the e-naira to be, it needs to have the technology. And I am sure that the e-naira has its own blockchain and that is very, very good news. Now, it doesn't replace the existing currency that we have. It is another form of transaction. I need to have a wallet on my mobile phone and an account with a bank that operates that has the e-naira. Then I can do transactions. It's totally different from what we have today. What we have today is called the Fiat FIAT currency. And the digital e-naira is a digital currency that you can use to make payments for goods and services. And I must say, it's a very laudable creation by the CBN. All right. You said it is very laudable from the central bank of Nigeria. But some people may want to really know what benefit is e-naira. What benefit will it bring into the regular digital banking system in the country? Well, the truth is it allows borderless transactions. And I want to believe the e-naira. In the blockchain space, there are private and public blockchains. And I want to believe the e-naira uses the private blockchain. And so because of that, it's not totally decentralized. They could actually have some level of control. So as far as I'm concerned, whether we like it or not, money has become totally digital. And for the bank, for the CBN, the APS are banking the country to decide to create its own digital currency. It makes the banking system in Nigeria way ahead of many other countries around the world who have not decided to make it, who have not taken the decision regarding the use of blockchain technology. It is a big loss for banks in Nigeria and of course in Africa. Alright, let's try and understand this further, just how operational it will be in practice. You've talked about the blockchain technology, you talked about wallets now. So what are you saying in MS is that the average Nigerian who has a bank account would be required to open some sort of wallet for him or her to be able to operate this. What about the issue about technology, enlightenment and all of that? Would you say that we are ready for this particular technology in the banking sector? Well, I don't know how ready the bank is, but definitely just like the days of transition from analog use of data recording to the transition to the point where we now have computers, all the startups being computerized. At one point it looked like it will never happen, but the transition took place and there must be a starting point. Right now, the next thing that will happen is the installation of infrastructure. I don't know how ready it is, but blockchain is an expensive project. Whether it's a country that is using it, whether it's a banking, whether it's a very expensive project and there will be a lot of education that we go on for the next, I don't know how long, maybe three to five years, but it has to start. Now digital currencies, according to the guidelines created by the central bank, digital currency are divided into two classes. We have the central bank, digital currencies, which is issued and is directed by the central bank and the private digital currencies. The central bank issue currencies are divided into wholesale CBDC and retail CBDC. Now wholesale CBDC will be assessed by institutions that hold accounts with central bank and interbank or large value transfers. Now the retail CBDC which the entire populace, the mass people we adopt is retail CBDC which is assessed by the general public, including households and businesses as a means of payment and store of value. Every person will be required to open a new wallet. It's a wallet-based. Everybody will require to open a new wallet, whether with the bank. I don't know how the CBDC is going to bring it about. I'm sure there will be new entrants into the banking system, new form of banking that we've never seen before. Right now the CBN has said that our house plans that it will be operational come 1st of October. That's barely a month ago. And you've talked about infrastructural and commitment to be put in place, enlightenment and all of that. Do you see these October take of feasible judging by what we have on ground? And would you also say that the central bank has actually carried all the operators along concerning this particular move? Honestly, I don't think it's going to be effective October 1st. I mean, yes, the announcement that we are going to do this is going to come up. If it's truly blockchain, then I don't see that. I'm not sure the banks have already, even the existing banks, they're not ready. Infrastructure is not there. Because even building the regular blockchain, I remember my first train in London, the London Blockchain Week in 2017. I approached the ESPAS, those who design blockchains. The very first thing I was told that I have to start to develop the platform. I need a minimum of a million dollars just to start, just the platform alone. But I don't talk about training, I don't talk about all those stuff. So the... I don't think the infrastructure is in place right now. Okay, so what is it good to start? Is it an announcement we made? I don't know how prepared the bank is or the banks are. Alright, from what we understand concerning digital currency, let's talk about Bitcoin and crypto for a bit right now. And for all we know, not too long ago, the central bank came out of the policy with some sort of regulation or ban on cryptocurrency operation. So far, you operate and plant the coin. Tell us how it has been because some countries are actually using Bitcoins as they are in a legal tender. So how has the environment of cryptocurrency been specifically in Nigeria since the CBN ban and all of that, specifically the one you dealt in? Alright, we lost our favor there again. Okay, so we'll take this... Did you know, per se, on eNira and we'll come back and see if we can re-establish contact with FAVOR? Stay with us. Alright, it's still business in site and plus TV Africa. As we wrap up the segment on eNira, let's conclude with FAVOR and see how cryptocurrency has been doing in Nigeria since the central bank of Nigeria in a world that is big stick. FAVOR. So thank you for having me back. So cryptocurrency and blockchain technology is huge. Now, banning cryptocurrency is not the smartest thing to do by any government right now. What should be done is to look out on the underlying technology which is the blockchain. With the blockchain technology and with a platform like the CBDC a country like Nigeria could develop systems that would help us in budgeting, in population, in like in sensors for example we can use it at best control. We can use it any tier to do with data, land registry. We could use it. So and because we don't have enough infrastructure, human capital, young people are the best bet for the spread of this technology. The old and tired people will not be ready because it's very... Blockchain is very cumbersome. It needs sharp minds. People that we take, that we bring about startups. There are startups that can come with this blockchain technology apart from cryptocurrency. There are startups that can be encouraged that can bring billions of dollars into this country that can empower this country. Now, the CBN needs to encourage startups around blockchain technology. Cryptocurrency is thriving. Definitely it will thrive because it's borderless. It's totally peer to peer. So there have not been any setbacks yet. That's why I'm consigned when it comes to the use of cryptocurrency in Nigeria. Actually, we are top two users of cryptocurrency in the world right now even with the so-called ban of the CBN. I believe CBN needs to find a way to embrace the stakeholders of cryptocurrency and blockchain technology in Nigeria and Africa and when it does for us. If they do that, I'm sure that there will be a lot of progress for the country. Alright, thank you so much. I'm Favo Sonano for joining us and sharing insight on the eNir and of course on cryptocurrency the way forward in Nigeria. We do appreciate your time. Alright, for eNirer project to be successful, a good number of Nigerians including companies and government agencies will have to maintain eWallets. Nevertheless, eNirer will be troubled by some of the current issues of the country including electricity, lack of power, lack of internet coverage and the volatility of the Nigerian currency. As we go on the show, the House of Representatives Committee and Public Accounts recently partnered with the Office of the Accountants General of the Federation and the Lagos Mainland District of the Institute of Chartered Accountants of Nigeria to organize a national workshop on the auditory generous queries and the ABC of responses would leave you with a highlight of that. See you again next time. I am Justin Atadone. Bye for now. In an audit, queries address issues where the Auditor General needs further clarifications to erase doubts and address disagreements. The queries may also be the questions asked by the Auditor General during an investigation to gather information to conclude an audit. The key issues in responding to Auditor General's queries and the fundamentals of technology innovations and compliance initiatives at the major discuss in this workshop. The Auditor General audits all governments pending every year by carrying out interim and annual audits as well as ad hoc examinations when the need arises. Key members from the National Assembly and the Institute of Chartered Accountants of Nigeria speak on the need for the provision of answers to these queries. As of Chief Executive Officers to be alive to their responsibilities in terms of rendition of audited accounts to the Auditor General for the Federation for his comments and subsequent report which is expected to be laid before the flow of the House and of the Senate. What this workshop is meant to do is to look at the work of the auditor and the audit query holistically. Audit queries is a phenomenon in the Nigerian environment, so to say in the sense that every now and then the Auditor General for the Federation encounters issues, sometimes unexpendable issues. Delegates speak under plans from the Nigeria respective organizations after this workshop. Yes, I think it's trying to drive the culture of regular financial reporting reliability of account reporting from the MDAs. A useful one, considering that when we prepare, we are accountable for whatever the government has given to us. The workshop is meant to help use the technical operational gaps brought about by the introduction of emerging technology disruptions and of course the consequences of the COVID-19 pandemic.