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Research Article |

Assessment of the Economic Implications of the Introduction of E-Naira in Nigeria

A digital currency or an electronic currency is money stored on a digital platform. The debate on the introduction and use of central bank digital currencies on the global scene arose because of the rapid rise in the use of private crypto currencies. Private crypto currencies is used by millions of people daily to transact across the globe. This has made governments to realize the need to introduce government backed central bank digital currencies. Digitalization is reshaping economic activities globally thereby reducing the role of physical cash in financial transactions. In response to these new developments, the central bank of Nigeria introduced a central bank digital currency the “e-Naira" in 2021. This study contributes to the emerging literature on central bank digital currencies and economic growth. This study evaluates the impact of the central bank of Nigeria digital currency on the Nigerian economy and financial system. The study adopted a qualitative methodology through literature review and content analysis. This approach entails the use of secondary qualitative information from different sources and summarizes it into useful information. The study found out that the e-Naira can accelerate financial inclusion, improve monetary policy effectiveness as well as ensure better tax collection. All these are panacea for accelerated economic growth. The digital currency is expected to be a simpler payment method and should help in reducing the amount of physical cash being used in Nigeria. It should provide veritable avenue for better inflow of diaspora remittances which can play a major role in providing in economic growth in Nigeria if properly harnessed. The study concluded that if widely adopted the e-naira could become a complementary means of payment and can act as a catalyst for continued innovation in the financial system which will lead to economic growth in Nigeria. This study recommends that the central bank should ensure the safeguard of data, protect customers’ privacy and ensure the stability of the value of the digital currency using appropriate mechanisms.

E-naira, Nigeria, Central Bank, Digital Currency, Economic Growth

APA Style

Akanbi, A. (2023). Assessment of the Economic Implications of the Introduction of E-Naira in Nigeria. International Journal of Economics, Finance and Management Sciences, 11(6), 311-315. https://doi.org/10.11648/j.ijefm.20231106.13

ACS Style

Akanbi, A. Assessment of the Economic Implications of the Introduction of E-Naira in Nigeria. Int. J. Econ. Finance Manag. Sci. 2023, 11(6), 311-315. doi: 10.11648/j.ijefm.20231106.13

AMA Style

Akanbi A. Assessment of the Economic Implications of the Introduction of E-Naira in Nigeria. Int J Econ Finance Manag Sci. 2023;11(6):311-315. doi: 10.11648/j.ijefm.20231106.13

Copyright © 2023 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

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