LAGOS: The e-Naira, Nigeria’s digital currency launched in October 2021 under the slogan “Same Naira, More Possibilities,” has seen a lukewarm reception with less than 0.5 percent of the population adopting it over a year later. Despite incentives offered to encourage its use, various challenges, including technological barriers and lack of awareness, have hindered its success.
According to News Agency of Nigeria, the digital currency, introduced under former President Muhammad Buhari, has faced obstacles such as weak technology infrastructure, unreliable electricity, and a lack of training for financial employees. Concerns about data privacy and financial crime, along with low trust in the government, have also contributed to its slow uptake. As of 2024, reports indicate that most e-Naira wallets remain inactive.
Demola Okunola, a lab scientist, expressed unfamiliarity with the e-Naira and questioned its necessity, given that other electronic platforms offer similar functions. Emmanuel Nkom, an ICT expert,
shared his experience of adopting the platform but found no significant benefits or incentives to continue using it. Nkom suggested that the policy was an attempt to clamp down on cryptocurrency, with little activity following the launch.
Experts highlight the absence of a comprehensive financial inclusion policy as a critical factor affecting e-Naira’s adoption. A report by Access to Finance survey in 2023 noted that 26 percent of Nigerians remain financially excluded, although platforms like Opay and Moniepoint have made strides in reducing this number.
A banker, speaking to the News Agency of Nigeria, emphasized that digital currencies globally are designed for international trade settlements, unlike the e-Naira, which is confined to local use. The banker pointed out that the infrastructure and security necessary to drive digital currency adoption in Nigeria are inadequately developed, contributing to the public’s hesitancy.
Yomi Babalola, an ex-banker, stressed the importance of not excluding the unban
ked population in digital currency initiatives. He highlighted the need for accessible infrastructure and education to facilitate the e-Naira’s adoption, noting that many Nigerians lack the necessary gadgets and technological know-how.
The challenges faced by the e-Naira underscore the need for a more inclusive approach, taking into account the country’s technological readiness and the population’s financial literacy. As Nigeria continues to explore digital currency, addressing these barriers will be crucial for its success.