In March, the Central Bank of Nigeria unveiled plans to assist local farmers with loans for farm tools using the eNaira digital wallet. Additionally, other government aid programs have recently been driving the adoption of the central bank digital currency (CBDC), but these might require users to provide more identity information in the future. Most Nigerians have adopted the most basic eWallet plans, which limit daily transactions and the amount of currency that can be held.
The “Agro eNaira Wallet Engagement” project aims to provide Nigerian farmers with a “transparent, accountable, and efficient” platform to access government aid and lending programs. According to officials, the initiative could reach up to five million farmers by 2024 and complement existing agricultural support schemes.
These funds will allow small farmers to obtain loans to purchase tools and equipment using the eNaira digital wallet and will likely be disbursed via local agro-dealers. This isn’t the first time a CBDC has been used for agricultural loans. Brazil is also running a similar trial.
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