e-Naira

The e-Naira is Africa's first Central Bank Digital Currency, launched by the Central Bank of Nigeria in October 2021 to improve financial inclusion, reduce transaction costs, enable direct government-to-citizen payments, and provide alternative to cash in Africa's largest economy with 200+ million population.

The e-Naira operates through digital wallets provided by authorized financial institutions and fintech partners, maintains parity with physical naira, supports both online and offline transactions, integrates with existing bank accounts and mobile money systems, and enables instant peer-to-peer transfers and merchant payments. Strategic priorities include banking the unbanked 40% of population lacking formal financial access, reducing remittance costs for diaspora sending money home, providing transparent channel for government social payments and subsidies, facilitating cross-border trade within Africa, and reducing dependence on cash which comprises over 90% of transactions.

Adoption challenges include limited smartphone penetration requiring feature phone compatibility, consumer trust concerns following previous financial sector issues, merchant acceptance infrastructure development, competition from established mobile money platforms, and user education on digital wallet security and operation. By 2025, the Central Bank of Nigeria continues promoting e-Naira through merchant incentives, government salary payments in e-Naira, and integration with popular fintech platforms. The e-Naira demonstrates CBDC implementation in large developing economy with unique challenges around informal economy integration, infrastructure limitations, and financial literacy barriers.