Rakiya Mohammed, an IT specialist at the Central Bank of Nigeria (CBN), reportedly disclosed the bank’s initiative to invest resources in the roll-out of a CBDC nationwide. 

Specifically, Mohammed reportedly revealed that the Central Bank of Nigeria is deep-diving into conducting a pilot for a sovereign digital currency, to help with foreign remittance restrictions.

“Before the end of the year, the Central Bank will be making a special announcement and possibly launching a pilot scheme in order to be able to provide this kind of currency to the populace.”

In May 2021, CBN governor Godwin Emefiele reportedly shared that digital currencies will be available throughout the nation, regardless of the existing prohibition. 

Per Mohammed, the CBN’s digital currency will reportedly adopt a complementary role to naira cash notes and is expected to be a means for reducing forex restrictions across the nation. 

Mohammed additionally shared that the CBN has been putting in efforts to study the potential of a central bank digital currency for nearly two years. The IT specialist revealed that the apex bank is prepared for the design of a proof-of-concept blockchain, dedicated to operating trial phases for the scheme. 

Previously, Nigeria’s central bank had reportedly issued a ban in February, on commercial banks and different financial establishments, from making their offerings available to crypto entities, with the primary reason being fear of crypto being falsely utilized for illicit activities. 

Nigeria’s CBDC plans announcement reportedly surfaced not long after the neighboring country, Ghana, also disclosed a tentative plan to be the first nation in the Africa continent to release a CBDC.