*Pix above: eNaira
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The Central Bank of Nigeria (CBN) has reported a significant surge in eNaira circulation, jumping by 284.6 per cent to N9.78bn in August 2023, as disclosed in its recently published ‘Economic Report.’
–As conventional notes and coins transactions decline
This is even as notes and coins experienced a decline of 14 per cent to N2.65tn within the period under review.
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It said: “There was a substantial increase in the eNaira, which rose by 284.6 per cent to N9.78bn, although the ratio of eNaira to currency-in-circulation (CIC) at 0.37 per cent remained insignificant, compared with notes and coins which accounted for 99.63 per cent.”
The apex bank emphasizes that despite the notable increase in eNaira, it still constitutes a mere 0.37 per cent compared to the dominant 99.63 per cent held by notes and coins in circulation. The report notes that currency-in-circulation also witnessed an 11.7 per cent decline to N2.66tn in August, moderating the growth in reserve money.
It explained: “Currency-in-Circulation, however, declined by 11.7 per cent to N2.66tn, which moderated the growth in the reserve money.
There was a substantial increase in the eNaira, which rose by 284.6 per cent to N9.78bn, although the ratio of eNaira to CIC at 0.37 per cent remained insignificant, compared with notes and coins which accounted for 99.63 per cent. The volume of notes and coins, however, declined by 14.0 per cent to N2.65tn at end-August 2023.”
This reduction is attributed to the rising adoption of alternative payment channels, with more individuals embracing electronic transfers and other digital platforms.
The CBN introduced the eNaira in 2021, prompting ongoing discussions about its adoption.
According to the International Monetary Fund (IMF), the adoption of eNaira has been slow, with about 98.5 per cent of eNaira wallets remaining unused a year after its launch.
The IMF’s report, titled ‘Nigeria’s eNaira, One Year After,’ reveals a gradual uptake, with retail wallet downloads reaching approximately 860,000 by end-November 2021, representing only 0.8 per cent of Nigeria’s active bank accounts.
Merchant wallet downloads, reaching about 100,000 by end-June, constitute roughly one eleventh of the number of merchants with Point-of-Sales (POS) terminals facilitating card payments.
It said: “The retail wallet downloads saw a few weeks of initial surge before tapering off. More specially, it only took 25 days for the number of downloaded wallets to reach 500,000 units—but going from there to 600,000 units took another 63 days; and to 700,000 units yet another 143 days.
“As of end-November 2021, the total number of retails eNaira wallets amounted to about 860,000. This is just 0.8 per cent of Nigeria’s active bank accounts. Merchant wallet download has reached about 100,000 in end-June, which is about one eleventh of the number of merchants with Point-of-Sales (POS) terminals—which enables credit or debit card payments.”(agency)/PLEASE SHARE
*Tags: eNaira, conventional currency, CBN
