Potential and Challenges of e-Naira: Commercio Partners Report
Commercio Partners Report: Potential and Challenges Associated with e-Naira in Nigeria
The Commercio Partners report praised the potential benefits associated with Nigeria’s Central Bank Digital Currency (CBDC) – e-Naira, but also pointed out the challenges facing this innovation. Experts highlighted the positive impact it could bring while recommending the Central Bank of Nigeria (CBN) to redefine its strategy, adding features that would make the digital currency more appealing to Nigerians.
Potential for Mainstream Acceptance
According to the Commercio Partners report, e-Naira has the potential to gain mainstream acceptance, which could accelerate financial processes in the country. Despite being the first project of its kind on the African continent, e-Naira faces low acceptance among users.
Challenges Facing e-Naira
E-Naira was introduced in October 2021 with the intention of revolutionizing transactions, supporting financial inclusion initiatives, and making Nigeria a leader in financial innovation. However, two years after its introduction, e-Naira still struggles with low acceptance, with only 1.5% of wallets actively used.
The main issue for e-Naira is the lack of clarity regarding its applications. Potential users do not see compelling reasons to adopt this new form of digital money. The lack of clear identification of e-Naira makes it vulnerable to social skepticism.
New Leadership at CBN
The new head of the CBN, Olayemi Cardoso, brings greater uncertainty about the future of e-Naira. Within nine months, the circulation value of e-Naira increased by an impressive 302%, giving hope for improved acceptance of this digital currency.
Planned Changes and Innovations
To increase the popularity of e-Naira, the CBN has introduced new features, including enabling the use of this digital currency without smartphones, through Near Field Communication (NFC) technology. Additionally, there are plans to make e-Naira the preferred method of collecting income in higher education institutions across the country, which could help boost its acceptance in society.
E-Naira must therefore face challenges, gain trust, and adapt flexibly to the dynamic financial landscape in order to succeed and fulfill its goals as Nigeria’s digital currency.
