eNaira value declined to N18.32 billion in September 2024 – CBN 

According to the CBN’s Monthly Economic Report for October 2024, the eNaira value dropped by 0.16% from N18.35 billion to N18.32 billion at the end of the month.

This decline comes amidst continued efforts by the apex bank to deepen financial inclusion and strengthen the country’s payment system infrastructure.

In contrast, the report revealed a significant increase in the total value of notes and coins in circulation (CIC), which rose to N4,530.90 billion from N4,292.72 billion within the same period.

“At N4,530.90 billion, notes and coins remained the largest component of CIC relative to N4,292.72 billion at end September 2024. On the other hand, the eNaira decreased by 0.16 per cent to N18.32 billion from N18.35 billion at end September 2024,” the report noted.

The data shows the dominance of physical cash over digital currency in Nigeria’s economy, despite the CBN’s push for a cashless society.

The report shows that eNaira value grew by 31 percent YoY to N18.38 billion in Quarter 2, 2024 but fell by 0.16 percent to N18.35 billion in Quarter 3, 2024.

Introduced in October 2021, the eNaira is a digital representation of the national currency, designed to complement physical cash.

Accessing and using the eNaira requires a digital wallet, which serves as storage for the currency and facilitates transactions.

The CBN envisioned the eNaira as a tool to achieve several critical objectives, including:

Despite these aspirations, the recent dip in eNaira usage shows the challenges of driving adoption in a predominantly cash-dependent society.

Governor Olayemi Cardoso, who recently unveiled the CBN’s Payment System Vision 2025, emphasized that the apex bank would conduct a comprehensive review of the eNaira’s implementation to enhance its effectiveness and broaden its economic impact.

These include promoting innovative technologies, enhancing cybersecurity, and aligning with global standards to improve the efficiency and security of transactions.

While the eNaira holds great potential, its slow adoption can be attributed to several factors, including limited public awareness, technological barriers, and the preference for physical cash.

Experts have also noted the need for more incentives and partnerships with financial institutions and fintech companies to drive adoption.