The number of eNaira wallets in Nigeria has reached 13 million, with a 63% increase in transaction value during the year

It is reported that due to a shortage of cash, Nigerians are turning to the country’s central bank digital currency (CBDC). The Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, told reporters at a news conference that since October last year, the number of eNaira wallets has increased more than 12 times to 13 million, and this year’s transaction value has increased 63% to 22 billion naira (US $48 million). The country’s CBDC was launched in October 2021. (Bloomberg)

Interpretation of this information:

The rise in the number of eNaira wallets and the surge in transaction values can be attributed to the shortage of cash that Nigeria is currently experiencing. As per reports, the country’s central bank digital currency has seen a 12-fold increase in eNaira wallets since October 2021, and this year’s transaction value has increased by 63% to US $48 million. Governor of the Central Bank of Nigeria, Godwin Emefiele, highlighted these statistics during a news conference.

It is evident that the CBDC has emerged as a savior for the country’s financial system, especially during times of economic distress. The eNaira wallets have become increasingly popular and accessible among Nigerians, offering a quick and secure way of making payments, which also addresses concerns around financial inclusion.

Moreover, as the country grapples with the cash crunch, the adoption of digital currencies can lead to a reduction in the cost of printing and distributing cash in Nigeria, eventually saving significant funds for the government.

Overall, the increasing popularity of the CBDC is a sign of its growing acceptance in Nigeria and marks an important milestone in the country’s financial journey.