Despite the efforts of the Central Bank of Nigeria to promote the adoption of the eNaira, the digital currency has failed to gain significant traction among Nigerians. With only 0.36% of the currency in circulation being in the form of eNaira tokens, experts attribute the slow adoption to a perceived lack of significant benefits compared to the traditional Naira. This lack of enthusiasm stands in stark contrast to the country’s booming cryptocurrency market, where digital assets like Bitcoin and stablecoins enjoy widespread popularity.
One of the key challenges facing the eNaira is the limited knowledge and understanding of the digital currency among the Nigerian population. Ndubuisi Ekekwe, Chairman of Tekedia Capital, argues that the eNaira does not offer any real benefits that would distinguish it from existing digital payment options such as virtual accounts and USSD. Obinna Iwuno, President of the Stakeholders in Blockchain Technology Association of Nigeria (SIBAN), believes that the slow uptake of the CBDC is due to Nigeria being one of the first countries to launch such a digital currency, resulting in limited knowledge about its implementation.
The International Monetary Fund (IMF) also points to accessibility as a key factor contributing to the slow adoption of the eNaira. Currently, the digital currency is only accessible to Nigerians with bank accounts, excluding a significant portion of the population. The IMF emphasizes the importance of making the eNaira available to all Nigerians while implementing robust financial integrity safeguards to prevent its misuse for financial crimes.
Despite efforts by the Central Bank of Nigeria to generate interest in the eNaira, including offering rewards to residents and merchants who accept the digital currency, interest remains subdued. The collaboration with tech firm Gluwa in enhancing the functionality of the CBDC and promoting financial innovation through blockchain technology has also not yielded the desired results. In fact, some local experts have declared the eNaira project as a whole as a flop, questioning its ability to meet expectations and contribute to the advancement of Nigeria’s economy.
As Nigeria continues to grapple with the slow adoption of the eNaira, experts and policymakers are exploring ways to increase awareness and incentivize the use of the digital currency. With the country being a prominent player in the global cryptocurrency market, there is hope that the eNaira can eventually gain traction and become a valuable addition to the country’s financial ecosystem. However, significant challenges remain, including the need to address issues of accessibility, knowledge, and perceived benefits in order to drive widespread adoption of the eNaira among the Nigerian population.
