The value of the eNaira, Nigeria’s digital currency introduced by the Central Bank of Nigeria (CBN) in 2021, increased significantly by 57% year-on-year (YoY), reaching N18.32 billion in the first ten months of 2024. An analysis of CBN data revealed stable growth in the currency’s value during the first quarter of 2024, followed by a 31% YoY increase in the second quarter before a slight decline of 0.16% in the third quarter. Month-on-month, the eNaira’s value also fell marginally in October, reflecting short-term fluctuations despite its upward trajectory.
The eNaira was designed to enhance financial inclusion, reduce cash processing costs, improve payment system efficiency, and facilitate Diaspora remittances. Its digital wallet allows users to hold and transact in eNaira, promoting ease of use similar to physical currency. The CBN emphasized that the eNaira also supports welfare interventions, enhances revenue transparency, and fosters a resilient payment ecosystem, aligning with Nigeria’s broader financial digitization goals.
CBN Governor Olayemi Cardoso announced a comprehensive review of the eNaira’s implementation under the Payment System Vision 2025 initiative to optimize its economic impact. Speaking at the 59th Annual Bankers’ Dinner of the Chartered Institute of Bankers of Nigeria, Cardoso highlighted the eNaira’s potential to drive economic growth by facilitating quick and affordable cross-border payments and improving trade and investment efficiency. The review aims to unlock the digital currency’s full potential and bolster confidence in Nigeria’s payment systems.