Since its launch in 2021, the eNaira—Nigeria’s digital currency—has struggled to gain traction, the International Monetary Fund (IMF) reports. Only about eight percent of eNaira wallets are active, with an average transaction value of N53,000 (approximately $120). By November 2022, total eNaira wallet downloads had reached 942,000, representing just 0.8 percent of bank accounts. Merchant wallet downloads account for roughly ten percent of merchants with point‑of‑sale terminals, and most wallets appear inactive. The average weekly eNaira transactions since launch involve only eight percent of wallets.
The IMF disclosed these findings in its “Staff Report for the 2022 Article IV Consultation: Key Issues” and “Nigeria: Selected Issues” reports. It noted that, despite some initial technical glitches, no major risk factors—such as a large‑scale cybersecurity event—have materialised. However, adoption by households and merchants remains slow after an initially strong uptake.
When Nigeria introduced its central‑bank digital currency (CBDC), it became the second country after the Bahamas to do so. President Major General Muhammadu Buhari (retd) emphasized that the eNaira would help move people and businesses from the informal to the formal sector, thereby expanding the tax base. He highlighted Nigeria‑specific benefits across various economic sectors.
The IMF states that the eNaira is intended to boost financial inclusion. To achieve this, the Central Bank of Nigeria (CBN) must enable individuals without bank accounts but with mobile phones to access the digital currency. The digital currency could also reduce remittance fees. The IMF recommends that the CBN forge strong relationships with mobile‑money operators and pursue well‑designed public‑private partnerships. Such collaborations would safeguard e‑money/mobile‑money ecosystems and ensure that the private financial sector’s contribution to financial inclusion is not undermined. Integrating the eNaira into existing mobile‑payment systems—by offering a safer store of value through an integrated mobile‑CBDC wallet—could enhance its utility and adoption.
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