eNaira adoption is not going as planned. Until now indeed, only a small percentage of the population uses this official digital currency of Nigeria. To remedy this situation and above all encourage Nigerians to accept eNaira, the central bank decided to limit withdrawals from ATMs.
Few Nigerians use eNaira till now
Nigeria can be proud to become the first African country to launch its own digital currency. Only problem: even after a year of existence, the eNaira is still not well accepted by the population.
The data proves it: the central bank has not achieved the expected adoption rate. It targeted nearly 4 million Nigerians without bank accounts. Currently, however, only 0.5% of Nigerians use eNaira.
Nigeria’s central bank is rethinking its strategy
By launching eNaira, Nigeria set itself the goal of moving away from physical currencies (or more accurately physical cash). This digital currency is intended to make the payment system more efficient, but not only! eNaira also reduces the cost of banking services. Through this digital currency, Nigeria even thought to optimize the country’s monetary policy.
To achieve these goals, the central bank has decided to drastically reduce the amount of withdrawals from ATMs. A guideline relating to this measure was sent to financial companies.
As explained by the central bank of Nigeria, the decrease in the amount of withdrawals concerns both individuals and businesses. Individuals can withdraw $225 per week, compared to $1125 per week for businesses.
Nigeria’s central bank’s decision to limit ATM withdrawals is sure to boost eNaira usage. But is this really the ideal method of raising awareness, especially if the central bank is targeting poorer communities? To meditate.
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