Nigeria, the most populous African nation, experienced a severe cash shortage and these shortages have increased the adoption rate of its CBDC, the eNaira.
Nigeria is the first African nation to launch a sovereign digital currency. After the launch, the project suffered a low adoption rate from the citizens. But the recent cash shortage stemming from new financial policies and cash withdrawal limits has forced citizens to utilize digital solutions.
eNaira Now Gaining Relevance
Godwin Emefiele, Nigeria’s CBN governor, stated that the CBN minted over 10 billion eNaira, and nearly 3.4 billion is in circulation. Also, the Nigerian government is fueling the adoption of this digital currency, using it for payments under the Nigerian social scheme. This scheme is for poor Nigerians and has contributed 4 million new wallets.
Emefiele is bullish on digital currency, stating that it has become the preferred electronic payment channel for financial inclusion. It also serves as a social intervention plan in the Nigerian economy.
Adesoji Solanke, a Nigerian and a Director at Renaissance Capital, shared his thoughts on the eNaira. He stated that although the government wants increased adoption from the citizens, the channels are limited. He believes the main challenge is the requirements since users must possess a smart device and an internet connection.
The number of smartphone users in Nigeria will likely exceed 140 mi
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Author: Eli Dambell
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