Nigeria’s Digital Currency - eNaira

 Nigeria to launch its first DIGITAL CURRENCY. - eNAIRA   A Central Bank Digital Currency.

-------- Author: Sowande Samson Oyedele - Financial Analyst_ACA 




The Central Bank of Nigeria suspended the launching of Nigeria's first digital currency called eNaira on 1 October, 2021 and finally set to launch it on Monday,  25 October, 2021 at Abuja FCT. 

The launching of the digital currency will be unveiled by President Muhammadu Buhari. It is pertinent to have some information about the digital as it possess some features which is different from other digital or crypto currencies.

What is eNaira?

eNaira is a new digital currency that is issued and regulated by the Central Bank of Nigeria. The digital currency serves as medium of exchange and a store of value, offering effective payment of transactions when compared to cash payments. It is the digital form of the Naira and will be used just like cash.

How to access eNaira?

To make use of eNaira - an eNaira wallet will be needed to access and use for eNaira. The eNaira wallet is a digital storage that holds the eNaira.  eNaira can be downloaded  on Apps store or Playstore.

Will eNaira replace physical cash?

No, the digital currency is expected to circulate alongside with cash. The  eNaira will complement cash as a less costly, more efficient, generally accepted, safe, and trusted means of payment.

What is the value of eNaira?

The digital naira is value at par with physical naira.

The value of  1 Naira  = 1 eNaira, this tends to give it the feature of a stable coin like USDT.


eNaira vs Cryptocurrency?

eNaira is different from cryptocurrency. The digital currency is issued and regulated by the government, unlike Bitcoin which is a cryptocurrency not being regulated.

The eNaira will makes transactions easier without  needing to be backed by cash.



How will eNaira affect the economy?

The Central Bank of Nigeria strongly believe that the launching of  eNaira would bring in economic growth and development. But it unclear the financial impact of eNaira on the economy and businesses at large.

However the possible challenge this may bring is on the fact the Wallet app cannot be used without a Smartphone (Android or iPhone). This mean that whoever that is going to have access to eNaira MUST have a smartphone.


 According to "Stears Business" published articles, 90% of the total population have mobile phones, only around 10%-20% use a smartphone. as stated in their article;

Majority of Nigeria mobile users have phones that offer only basic functions like voice calling and text messaging. Meanwhile 16%  of households who use smartphones struggle to pay for the internet.

This is an indication that CBN might not achieve the overall objective of launching the digital currency. We shall keep our fingers crossed and see how things unfold as the government launch the digital currency.


-------- Author: Sowande Samson Oyedele - Financial Analyst_ACA 

Email ✉️ : samoyeclearance01@gmail.com

                   samsonsowande317@gmail.com





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