eNaira Adoption Remains Low, Representing Less Than 1% of Circulating Currency as of March 2024
As of March 2024, eNaira, Nigeria’s digital currency, made up less than 1% of the total currency in circulation. Despite being an innovative step towards digital financial inclusion, it has yet to achieve significant adoption compared to traditional cash.
According to data from the quarterly statistical bulletin of the Central Bank of Nigeria (CBN) for the first quarter of 2024, out of N3.87 trillion currency in circulation by March 2024, e-naira made up N13.98 billion. This means that about 0.36% of currency in circulation in the country is in the CBDC, eNaira.
However, the amount of eNaira available for circulation has surged by 1,896% from N700.75 million recorded in October 2021.
Launched by the Central Bank of Nigeria (CBN) in October 2021, the eNaira was envisioned as a digital alternative to physical cash, aiming to enhance financial inclusion, reduce transaction costs, and improve the efficiency of the monetary system. The digital currency operates alongside the traditional naira and is accessible through a dedicated mobile app.
The CBN has been actively promoting the eNaira through various initiatives. These include partnerships with financial institutions, merchant incentives, and public awareness campaigns. Despite these efforts, many Nigerians still prefer using cash for daily transactions due to its familiarity and widespread acceptance.
While the eNaira holds promise for transforming Nigeria’s financial landscape, its current adoption rate highlights the need for continued efforts to address the barriers hindering its widespread acceptance.
Source: Nairametrics
