Date: July 26, 2023
The Central Bank of Nigeria (CBN) is taking significant steps to encourage wider use and adoption of its digital currency, eNaira. According to CBN’s Acting Governor, Folashodun Shonubi, the bank is altering the eNaira model to facilitate greater usage of the central bank digital currency in the country. The move comes as part of Nigeria’s efforts to promote the use of eNaira, which was introduced in October 2021.
Despite witnessing an impressive increase in the number of eNaira wallets, reaching 13 million between October 2022 and March 2023, the adoption rate is still relatively low considering Nigeria’s population of nearly 224 million people. The CBN’s objective is to boost eNaira’s service offerings and user-friendliness to attract more users and integrate digital payments into the country’s financial landscape.
In a recent upgrade to enhance the user experience, CBN introduced contactless payment functionality to the eNaira app. However, specific details about the planned changes to the eNaira model have not been disclosed yet.
Despite the efforts made by the CBN, eNaira adoption faces challenges. The country’s informal economy, valued at $220 billion, heavily relies on cash transactions, resulting in limited infrastructure and merchant acceptance for extensive eNaira use. As a result, the CBN continues to work on increasing financial inclusion and accessibility while striving to complement existing payment systems, rather than replace them. The central bank aims to provide a platform that leverages eNaira’s capabilities to offer more effective and convenient financial services.
As eNaira enters its second year since its launch, the CBN remains committed to fostering partnerships with institutions across Nigeria to promote eNaira adoption and encourage its usage in transactions. Through ongoing engagement and collaboration with universities and other entities, the CBN seeks to create an environment where eNaira becomes the preferred option for financial transactions, especially for revenue collection and payments.
With the CBN’s continuous efforts to enhance eNaira’s functionality based on user feedback, Nigeria is poised to shape the future of digital payments, contributing to the country’s financial modernization and promoting financial inclusion.
