Moves by the Central Bank of Nigeria (CBN) to revive its digital currency, the eNaira, three years after its launch, have been hailed by experts and fintech leaders.
In reactions to the plan, the experts said if well executed, the revised eNaira could become a powerful instrument for financial inclusion and economic development.
One of the experts and co-founder/CEO of a fintech company, meCash, Modupe Diyaolu, said eNaira must become decentralised and globally accessible to succeed.
An economist Ikemesit Effiong pointed to the eNaira’s potential role in digitising public services and promoting safer, faster payments.
Although there is a steep decline in trust and the usage of eNaira, the CBN is optimistic about the currency’s potential, citing its role in modernising Nigeria’s financial system and improving inclusion, especially among underserved populations.
Introduced in October 2021, the eNaira was heralded as a bold step in Africa’s digital finance landscape. Nigeria became the first country on the continent to roll out a central bank digital currency (CBDC), joining only a few global peers such as The Bahamas and Jamaica.
Initially, the currency showed strong uptake. Within the first few months, the eNaira app was downloaded nearly 840,000 times, and over 270,000 wallets – comprising 252,000 consumer and 17,000 merchant wallets – were actively in use. Transaction volume and value surged to over 200,000 and N4 billion, respectively. However, that momentum has not been sustained.
The digital currency saw its user-base dwindle rapidly, with official data showing that 98 percent of wallets are now inactive. Though the value of the eNaira in circulation had grown from N0.94 billion in December 2021 to N18.31 billion by October 2024, it still represents less than one percent of the total N4.55 trillion in currency circulation.
Meanwhile, the app itself has not received updates in over a year. Frustrated users, such as Baffa Halliru, have reported unresolved issues with transactions and poor customer support. “It’s been almost a year I’ve complained about my failed transaction and yet I never get any feedback,” Halliru wrote in a one-star review.
Despite these setbacks, CBN Governor Olayemi Cardoso has restated the bank’s commitment to the digital currency. At the 2024 Bankers’ Dinner, he announced that the CBN would undertake a comprehensive review of the eNaira project in 2025 as part of its broader Payment System Vision 2025 initiative.
According to Cardoso, the review aims to optimise the currency’s economic impact, improve adoption and explore new-use cases including affordable cross-border payments.
He described the eNaira as a digital tool with significant growth potential.
The planned reboot, dubbed eNaira 2.0, seeks to fix earlier flaws and expand the platform’s functionality. It is expected to feature offline capabilities, programmable money for conditional payments, and a version geared toward wholesale use by deposit money banks.
In a bid to increase adoption, the CBN intends to work closely with both federal and state governments, allowing Ministries, Departments and Agencies (MDAs) to use eNaira wallets for vendor and beneficiary payments.
The apex bank is also pushing for a model that integrates eNaira payments into existing financial processes, including tax collection and government transfers.
In an interview with LEADERSHIP Weekend, Diyaolu said the eNaira must become decentralised and globally accessible to succeed.
“It shouldn’t require a BVN or a Nigerian bank account. A Chinese or European buyer should be able to pay a Nigerian seller directly using eNaira without needing to go through cumbersome processes. Decentralisation will drive adoption,” she said.
Diyaolu noted that Nigeria’s existing financial infrastructure primarily caters to corporate clients and larger institutions, leaving retail customers and small businesses underserved. “The eNaira shouldn’t be about competing with banks; it should fill the gaps they’ve left. Challenger banks and fintechs brought banking to millions without the need to visit a branch. The eNaira should build on that model to reach unbanked populations, particularly in rural areas.”
To Effiong, the eNaira has potential in digitising public services and promoting safer, faster payments. He said government-backing provides an additional layer of security that can reduce fraud and deter illicit use.
“Unlike cryptocurrencies that some use to evade oversight, the eNaira is issued and monitored by the government. That discourages fraud and builds confidence among cautious users,” he said.
Effiong argued that integrating the eNaira into cash-heavy sectors such as public transportation could catalyse broader adoption. “Most public transport systems in Nigeria still operate with cash. Bringing them into the eNaira ecosystem would drive usage and improve transparency,” he added.
Despite these promising angles, there are significant challenges; trust remains a major hurdle. Many Nigerians are wary of government oversight, fearing that digital transactions could be used to monitor or control them.
Also, several young users interviewed said that while they are open to using eNaira, they must first feel secure and confident in the platform. One user explained that the lack of a working USSD code, crucial for those without smartphones, excludes a large segment of rural dwellers.
“Many people don’t have smartphones, and even those who do can’t always access the internet. The USSD code hasn’t worked in months. How can you drive inclusion without the basic tools?” he queried.
Others compare Nigeria’s experience unfavourably with countries like The Bahamas, where the rollout of a digital currency involved extensive public education and phased implementation. In Nigeria, the process was viewed as rushed, with little effort made to explain the product or guide users through its functionality.
A report by the International Monetary Fund (IMF) cited this as one of the main reasons for the eNaira’s poor performance. According to the IMF, 98.5 percent of wallets remained unused one year after the launch, with the phased approach limiting access to banked individuals and excluding key user segments.
Analysts suggest that for eNaira 2.0 to succeed, the CBN must adopt a more collaborative and transparent approach. This includes working with fintechs, banks, mobile network operators, and community organisations to educate users and improve access.
They also recommend robust investment in customer support infrastructure and app development, given the many complaints lodged by users over unresolved technical issues. Transparency around user data and privacy protections will also be essential to rebuild public trust.