CBN returns eNaira app to online stores as security concerns persist

By Chris Agabi, Zakariyya Adaramola (Abuja) & Christiana T. Alabi (Lagos)   After an upgrade, the Central Bank of Nigeria (CBN) has returned the eNaira app to both Google Play Store and iOS store. However, there are still security concerns raised by Information Technology (IT) experts and users of the novel app. Checks by our […]

By Chris Agabi, Zakariyya Adaramola (Abuja) & Christiana T. Alabi (Lagos)

 

After an upgrade, the Central Bank of Nigeria (CBN) has returned the eNaira app to both Google Play Store and iOS store.

However, there are still security concerns raised by Information Technology (IT) experts and users of the novel app.

Checks by our correspondent show that CBN returned the app on Thursday afternoon.

It could be recalled that less than 48 hours after the launch of the app, the apex bank took it down. It explained that the eNaira speed wallet, the app for eNaira personal wallet, was being updated hence its disappearance.

The CBN said it was not true that the eNaira platform crashed 48 hours after it was launched by President Muhammadu Buhari.

The eNaira speed wallet, the app for the eNaira personal wallet, was removed on the Play Store Wednesday evening leaving just the eNaira speed merchant wallet which is for vendors.

Mr. Osita Nwanisobi, CBN Director Corporate Affairs had said, “There’s an upgrade going on at the moment by Google. Try in the next few hours. That’s the position and will be up shortly.”

However, there was some frenzy over the disappearance of the app in the Google Play Store and iOS store.

Many subscribers reported finding it difficult to complete their e-wallet activation process because the activation email never got to their emails 48 hours after entering their profile on the app.

eNaira faces cybercrimes threat – Economist

An economist and Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), Dr. Muda Yusuf, said the value proposition of the newly launched eNaira is not clear, beyond the psychological satisfaction of joining the league of countries with digital currencies. 

President Buhari while launching the country’s digital currency, eNaira, Monday, said it could increase the country’s Gross Domestic Product (GDP) by $29 billion in 10 years.

Yusuf, a former director general of the Lagos Chamber of Commerce and Industries (LCCI), said digital applications typically come with efficiency, cost-effectiveness, smartness in usage and convenience.  

However, he expressed worry over the issue of security and its vulnerability to cybercrimes. He also expressed worry over the pace of adoption, considering the level of literacy and the huge informal economy.   

He said, “Nigeria has witnessed an amazing transformation in the payment system space. The use of electronic payments, the use of POS, ATM machines, mobile money transfers, debit and credit cards have gained tremendous traction and confidence among the citizenry. 

“Transactions on these platforms are already in trillions of naira and still counting. It remains to be seen what additional value the eNaira will bring,”  

He also said there is no connection between the eNaira and the exchange rate as the exchange rate is determined by the demand and supply fundamentals in the foreign exchange market, driven largely by imports, exports and the flow of capital across borders while the naira, whether digital or physical, is just a means of exchange, and to some extent, a store of value.

Why eNaira experienced hitch – IT experts 

The newly launched Nigeria’s digital legal tender, eNaira, ran into turbulence two days after President Muhammadu Buhari unveiled it at Presidential Villa in Abuja because it was hurriedly developed, some Information and Technology experts have told Daily Trust.

Speaking with Daily Trust yesterday night, the experts said the CBN should have tested the waters first by introducing a pilot phase before the real launch at a later date next year. 

“FG needs to put in place a conducive environment to enable the establishment of digital skills, digital jobs and digital services and products that the youth can export. These will boost our economy and diversify it away from being a mono-product economy that it still essentially is,’’ a former president of the Association of Telecommunications Companies of Nigeria (ATCON), Engr. Olusola Teniola, told Daily Trust.

He said the best thing for the CBN is to proceed as other advanced countries and begin with a pilot phase and test the waters.

This would have allowed it to be tested amongst a small group of users that would provide feedback and suggestions back to CBN as to how best to launch the eNaira, he said.

“The underlying systems the eNaira depends on need to be fully stressed-tested and user-acceptance tested,’’ he added.

He said its use and adoption are a real concern as the interface between each disparate payment system and verification provided an avenue for cyber-attacks that are well-known amongst the cyber criminals.

According to him, there cannot be enough security features but the most important is cyber security awareness and digital skills and education amongst users of the eNaira.

He said many secure financial services and products rely on a trusted system and user acceptance is key for their credibility.

Another IT expert, Chukwuemeka Fred Agbata (CFA), said the eNaira seemed like a rushed project which was why it encountered a hitch early in its life.

‘’One wonders what the rush is all about? I honestly don’t see the reason why CBN is in a race to launch eNaira,’’ Agbata said.

The IT expert-cum-journalist said cybersecurity is a challenge and that CBN might not fully prepare for what is to come.

He said: “My heartfelt sympathy goes ahead to many that will likely fall for simple but real eNaira scams. Honestly, the preparation for the launch has been nothing short of disappointing.’’

He advised “the CBN to take up the challenge of increasing the literacy level – this means partnering with the media and other professionals. People must be taught to distinguish between the real or any other type of eNaira.

“Buy up as many related domain strings. This will be one way that the bad actors would use to penetrate uninformed Nigerians. Imagine a close domain like enaira.co or enairagov.io,’’ he said.

But a lead consultant at DigiSense, Remmy Nweke, said the eNaira launch was timely as Nigeria doesn’t have to wait for all Nigerians to be technology savvy or literate before a given value-added service is introduced. “So leapfrogging is allowed’’, Nweke said.  

He said every platform in the technology space is susceptible to attack by fraudsters and all that the CBN should do is go back to the drawing board and fortify its system.

He said security features that should be included in the eNaira are a Registry Lock, Domain Name System Security Extensions (DNSSEC), Anti-Denial-of-Service (DoS) modules, Web Protocol Security, and Cold wallet etc.

We don’t bear losses caused on app – CBN

In the meantime, the apex bank has warned users that it will not be held liable for any loss, whether arising from, or in connection with the use of the eNaira website.

The information is displayed on the CBN’s eNaira website. The bank stated this after the sudden disappearance of the eNaira wallet from the Google Play Store earlier on Wednesday.

Explaining further, CBN said it has limitation on liability. “In no event will the CBN or its directors, officers, employees, independent contractors, affiliates or agents, or any of its or their respective service providers, be liable to you or any third party for any use, interruption, delay or inability to use the eNaira website, lost revenues or profits, delays, interruption or loss of services, business or goodwill, loss or corruption of data, loss resulting from system or system service failure, malfunction or shutdown, failure to accurately transfer, read or transmit information, failure to update or provide correct information, system incompatibility or provision of incorrect compatibility information or breaches in system security, or for any consequential, incidental, indirect, exemplary, special or punitive damages, whether arising out of or in connection with the use of the eNaira website.”

The apex bank may have also set off caution for users as it insisted it won’t be held liable for errors made on the site. The disclaimer reads, “The materials appearing on eNaira’s website may include technical, typographical, or photographic errors. CBN will not promise that any of the materials in this website are accurate, complete, or current. CBN may update the materials contained on the eNaira website at any time without notice and make no commitment to update the materials.”