When Nigeria launched its Central Bank Digital Currency (CBDC), the eNaira, in October 2021, it was seen as a revolutionary step forward. As the first African nation and the second country globally to roll out a digital currency, expectations were high. However, three years on, the eNaira has failed to live up to its promise, leaving many Nigerians disillusioned.
Yusuf Ibrahim, one of the early adopters, had hoped the eNaira would help him avoid the high transaction fees associated with traditional banking. “When I was opening my wallet, I had the idea of moving all my money to the wallet and leaving little to the banks to prevent their charges, which often accumulate to thousands by the end of the month,” he said.
However, Yusuf’s enthusiasm waned after the Central Bank of Nigeria (CBN) banned cryptocurrency trading, leading to widespread distrust. “The ban on cryptocurrency made me rethink. I feel the institution can block my account if they feel I contravene any financial rule. So, I decided not to put all my money in one basket with the CBN,” he explained.
User Frustrations and Technical Issues
For some users, technical glitches further dampened their trust in the eNaira. Suleiman Adam, a journalist in Kano State, abandoned the platform in 2022 due to unresolved bugs. “The wallet did not engage in any update while I was using it, and I remember losing N10,000 during a transfer from my bank app to the eNaira wallet. Till date, I am yet to get the money back,” he lamented.
Adam also highlighted the lack of widespread acceptance of the eNaira in everyday transactions. “The initiative is a good one, but the lack of updates and acceptability made me feel the CBN was not serious about onboarding more people,” he said.
Maryam Ahmad, another user, echoed similar sentiments. While she initially opened an eNaira wallet out of curiosity, she eventually stopped using it due to the absence of meaningful incentives. “I might have continued using it if there were benefits like small cashback rewards for transactions,” she said.
Missed Opportunities and Grassroots Challenges
In 2022, the CBN launched a grassroots campaign to promote eNaira adoption among commercial tricycle operators in Abuja. Promises of subsidies and simplified transactions were made, but follow-up efforts were scarce.
Auwal Ibrahim, a tricycle operator, recounted how the campaign fizzled out. “They left us with umbrellas, shirts, and face caps but never returned to onboard us properly. During the cash crunch, we could have used the eNaira, but it wasn’t implemented effectively,” he said.
A Hasty Rollout
The eNaira was initially positioned as a tool to enhance financial inclusion and support Nigeria’s cashless policy. However, the rushed rollout, just four months after its announcement, has resulted in lackluster adoption.
According to the International Monetary Fund (IMF), by 2024, 13 million eNaira accounts had been created, yet most remained inactive. While 854,512 transactions were recorded, with a total value of N29.3 billion, the numbers fell short of expectations.
As Nigeria reflects on the eNaira’s challenges, the initiative’s shortcomings underscore the importance of building trust and ensuring seamless user experiences to drive the success of digital financial platforms.
