Awareness and Understanding of Enaira in Nigeria
Keywords:Awareness, understanding, receptiveness, enaira
A central bank digital currency (CBDC), also known as a digital currency produced by the central bank, has recently attracted the attention of numerous major banks. A central bank digital currency (CBDC) is a liability of the central bank issuing it and is the digital representation of real money. The aim of the study is to evaluate the awareness, understanding, and receptiveness of the E naira in Nigeria. The specific objectives are to examine the evolution and understanding of the eNaira and its impact on the Nigerian Emerging economy and to find out how the eNaira awareness will improve financial inclusion in Nigeria's emerging economy. A survey research design was adopted, and primary data was used for the study. The population of the study were 33 banks that joined the eNaira platform of the CBN, and ten banks that were actively involved in eNaira operations were used as the sample. One hundred twenty copies of the questionnaire were administered to respondents from the selected banks, and descriptive statistics were used to analyze the retrieved questionnaires. Regression analysis was used to test the hypothesis, and the result showed that the level of awareness, understanding, and receptiveness is low in Nigeria. It was concluded that the initiative has not yet progressed past the initial wave of early adopters regarding market receptivity, and the number of retail clients on board is less than 1% of active bank accounts. It was recommended that CBDC could be a catalyst in an economy like Nigeria, which is lagging behind in mobile money penetration. It would be crucial for banks to create their CBDC technology models to allow compatibility with other CBDC systems to enhance strong coordination and information sharing among central banks, which will be extremely helpful as they work together to maximize this new technical innovation.
Abiodun, B. (2021). How Nigeria’s eNaira will work. Retrieved at:https://techpoint.africa
Ahannaya, C., Oshionowo, A., Sanni, A., Arogundade, J., & Ogunwale, O. (2021). The effect of cryptocurrencies on the Nigerian economy, IEEE-SEM, 9(3), 8-14
Arias, G., & Sánchez, A. (2016). The digital currency challenge for the regulatory regime., 5(2).
Armas, A., Ruiz, L., & Vásquez, J. L. (2022). Assessing CBDC's potential for developing payment systems and promoting financial inclusion in Peru. BIS Papers chapters 123, 131-151.
Asidok, N. O., & Michael, A, A. (2018). Mobile banking transactions and bank profitability in Nigeria. International Journal of Economics, Commerce, and Management, 6(6),
Bank of International Settlement. (2022). “Central Bank Digital Currencies: a New Tool in the Financial Inclusion Toolkit?” FSI Insights, No. 41, April.
Barontini, C., & Holden, H. (2019). Proceeding with caution survey on central bank digital currency. Moving with Caution-A- A Survey on Central Bank Digital Currency. BIS Paper, No. 101.
Barr, M. S., Harris, A., Menand, L., & Xu, W. M. (2020). Building the Payment System of the Future: How Central Banks Can Improve Payments to Enhance Financial Inclusion. U of Michigan Law & Econ Research Paper, (20-038).
Bartoletti, M., Carta, S., Cimoli, T., & Saia, R. (2017). Dissecting Ponzi schemes on Ethereum; Identification, analysis, and impact. Retrieved from: https://arxiv.org
Bech, M. (2017). Central Bank Cryptocurrencies, BIS Quarterly Review
Bissessar, S. (2016). Opportunities and risks associated with the advent of digital currency in the Caribbean.
Bordo, M. D., & Levin, A. T. (2017). Central bank digital currency and the future of monetary policy (No. w23711). National Bureau of Economic Research Cryptocurrencies. In (pp. 288-299). Springer, Cham.
Dakila Jr, F. G. (2022). Deliberations of an emerging market economy central bank on central bank digital currencies. BIS Papers chapters, 123, 153-160.
Deloitte (2022) The rise of using cryptocurrency in businesses. https://www2.deloitte.com/
Didenko, A. N., & Buckley, R. P. (2018). The evolution of currency: Cash to cryptos to sovereign digital currencies. , , 1041.
Edwin, M. A., & Adele-Louise. C. (2014). Mobile phone banking in Nigeria: Benefits, eNaira (n.d). Get started. Retrieved at: https://enaira.com/wallet/get-started
Engert, W., & Fung, B. S. C. (2017). Central bank digital currency: Motivations and implications (No. 2017-16). Bank of Canada Staff Discussion Paper.
Eze, G. P., & Egoro, S. (2016). Electronic banking and profitability of commercial banks https://nairametrics.com/2021/09/10/cbn-lists-benefits-of-its-digital-currency-e-naira-in-financialsystem/in Nigeria. Journal of Finance and Economic Research, 3(1), 202–222.
Jeffrey, R. (2014). Reply to George Selgin on Austrian Business Cycle Theory Nigeria-
Manon, Ravi. (2022) “Making Sense of Crypto,” F&D, International Monetary Fund, September, pp 14-17.
Minesso, M. F., Mehl, A., & Stracca, L. (2022). Central bank digital currency in an open economy. Journal of Monetary Economics, 127, 54-68.
Obiora, K.I. (2022). Special Remarks at the IMF CBDC Seminar in Frankfurt, Germany, June.
Oladejo, M. (2016). E-payments adoption and profitability performance of deposits money banks in Nigeria. IPASJ International Journal of Information Technology (IIJIT), 4(3), 1–9.
Olaiya, A., & Adeleke, K. (2019). Electronic banking and profitability of deposit money
Olisah, C. (2021). CBN lists the benefits of its digital currency, the e-Naira, in the financial system.
Ozili, P. K. (2023a). eNaira central bank digital currency (CBDC) for financial inclusion in Nigeria. In Digital Economy, Energy, and Sustainability: Opportunities and Challenges (pp. 41–54). Cham: Springer International Publishing. Problems and prospects. International Journal of Business and Commerce, 3(6), 50–70. Retrieved at: https://www.mondaq.com/nigeria/fin-tech/1108724/enaira-the-future-of-digital-currencyin- September 2017, Bank for International settlements.
Ozili, Peterson K., (2021). Central Bank Digital Currency in Nigeria: Opportunities and Risks.
Ree, Joo K. (2020) “Nigeria Strategy for a Monetary Policy Reset,” Nigeria Selected Issues, IMF Country Report No. 21/34, December, pp. 5-16.
Said, A. (2019). The Economic Impact of Digital Fiat Currency (DFC): Opportunities and Challenges.
Seun Timi-Koleolu and Eustace Aroh (2021). enaira – the future of digital currency in Nigeria? Retrieved from Accessed on 19/11/2021.
Sigurdsson, G., Giaretta, A., & Dragoni, N. (2018). Vulnerabilities and Security Breaches in
Timi-Koleolu, S., & Aroh, E. (2021). Nigeria: eNAIRA – The Future Of Digital Currency In Nigeria?
Ugwueze, A. C., & Nwezeaku, N. C. (2016). E-Banking and commercial bank performance in Nigeria: A co-integration and causality approach. International Journal of e-Education, e-Business, e-Management and e-Learning, 6(3), 175-185.
us/en/pages/audit/articles/corporates-using-crypto.html. Accessed January 24, 2022
White House. (2022). “Policy Objectives for a U.S. CBDC System,” September (https://www.whitehouse.gov/wp-content/uploads/2022/09/09-2022-Policy-Objectives-US-CBDC-System.pdf).
Zuluaga, D. (2021). Which Type of Digital Currency is for Financial Inclusion? Cato Journal, 41, 413.
How to Cite
Copyright (c) 2023 Oluwaleke Ebenezer Akindipe, AKHIMIE DEBBIE OLUWAJENYO, Dr. OLONADE
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
The author fully assumes the content originality and the holograph signature makes him responsible in case of trial.