Nigeria’s Digital Currency Soars to N10.26 Billion in Circulation

Nigeria’s digital currency, eNaira, has witnessed a remarkable surge in value circulation, reaching N10.26 billion as of September 30th, 2023. This 302% growth in just nine months indicates a rising acceptance of Africa’s first Central Bank Digital Currency (CBDC), launched by the Central Bank of Nigeria (CBN) in October 2021.

A Rapidly Evolving Digital Landscape

The eNaira, a digital equivalent of the country’s paper money, is stored, accessed, and used via the eNaira wallet. The CBN’s data analysis from the quarterly statistical bulletin reveals a steady increase in eNaira in circulation, with quarter-on-quarter growth rates of 90%, 48%, and 43% in Q1’23, Q2’23, and Q3’23, respectively.

Strategic Initiatives Fuel eNaira’s Ascent

To boost eNaira adoption, the CBN introduced an enhanced USSD channel for feature phone users, enabling seamless transactions. Additionally, the CBN offered eNaira as a payout option for Diaspora remittances, highlighting its growing acceptance globally.

USSD Channels Drive eNaira Adoption

The surge in eNaira adoption can be primarily attributed to transactions via the USSD channel. The volume and value of eNaira transactions via USSD have risen significantly, showcasing a growing acceptance of the digital currency.

As we move forward in this digital age, the eNaira’s journey represents a significant milestone in Nigeria’s transformation towards a cashless future. The digital currency’s rapid growth reflects not only the country’s monetary evolution but also its potential to reshape the global financial landscape.

Key Points:

  • The value of eNaira in circulation has increased by 302% in nine months, reaching N10.26 billion.
  • Strategic measures by the CBN, such as enhancing USSD channels and offering eNaira as a payout option for Diaspora remittances, have fueled the digital currency’s adoption.
  • Transactions via USSD channels have significantly contributed to the eNaira’s growing acceptance.
  • Nigeria’s digital transformation journey is marked by the eNaira’s rapid growth, reshaping the nation’s monetary landscape and paving the way for a cashless future.

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