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As of March 2024, Nigeria’s digital currency, the eNaira, accounted for less than 1% of the total currency in circulation. Despite its potential to drive digital financial inclusion, the eNaira has not yet seen significant adoption compared to traditional cash.
Data from the Central Bank of Nigeria (CBN) reveals that out of the N3.87 trillion currency in circulation by March 2024, the eNaira constituted N13.98 billion, representing approximately 0.36% of the total currency. This marks a substantial increase of 1,896% from the N700.75 million recorded in October 2021, shortly after its launch.
The CBN introduced the eNaira in October 2021 as a digital counterpart to physical cash, aiming to enhance financial inclusion, lower transaction costs, and improve the efficiency of the monetary system. The digital currency is designed to work alongside the traditional naira and is accessible through a dedicated mobile app.
To promote the eNaira, the CBN has implemented various initiatives, including partnerships with financial institutions, merchant incentives, and public awareness campaigns. However, despite these efforts, many Nigerians continue to favor cash for daily transactions due to its familiarity and broad acceptance.
While the eNaira has the potential to transform Nigeria’s financial landscape, its current low adoption rate underscores the need for ongoing efforts to overcome the barriers to its widespread acceptance.
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