One initiative which I think Nigeria’s Central Bank got distracted by was the whole thing on eNaira. With digital wallets, virtual accounts, USSD, and other options out there, the real contribution of eNaira to the advancement of Nigeria’s economy remains muted, from my perspective. It does not yield more money than old Naira, and it does not help you make more money than the traditional Naira money. So, what is really the big deal for an apex bank to be spending time on it?
Yet, it seems smarter people are finding ways to use eNaira: “A recent report by the Central Bank of Nigeria (CBN) has disclosed that the value of eNaira in circulation rose by 302 percent in nine months to N10.26 billion at the end of September 2023, reflecting an increase in the adoption of the Digital currency.” That may look like a good number until you remember that it was launched on October 25, 2021. So, the adoption is very poor!
If you pick one Nigerian company, Moniepoint, which does $14 billion value of transactions per month, and compare it with eNaira lifetime equivalent of $11 million, you can understand why they should shut that thing down, and focus on the core mission of the apex bank: strengthen the Naira currency by controlling inflation, and ramp up employment via interest rate management. Running eNaira is a distraction now.
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Please do not attack me: if eNaira is a startup, and if you look at all the resources put in it (a presidential launch on national television), by now, it should be considered to have failed to attain a product-market fit. With that, either there is a pivot or the company will fade. Not many investors will keep investing in it. I think Nigeria should allow the eNaira to fade, and redirect the efforts on important things. Data has spoken!
One initiative which I think Nigeria’s Central Bank got distracted by was the whole thing on eNaira. With digital wallets, virtual accounts, USSD, and other options out there, the real contribution of eNaira to the advancement of Nigeria’s economy remains muted, from my… pic.twitter.com/XWCZO0n5cz
— Ndubuisi Ekekwe (@ndekekwe) February 13, 2024
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Just look at the two guys holding the eNaira board, that pretty much sums up all you need to know about it.
Again, what has Nigeria government excelled in before? Yea, a national project returned around N10 billion worth of activities in over two years, and we are still having a conversation about it.
Next case please.
If we are looking for something worthwhile to do, it has to be scaling transactions at informational level of the economy without involving cash, with that, nobody will ever demand N10 million (let alone N50 million and N100 million), as a ransom for kidnapping. When you are incapable of catching criminals, at least know how to water down their demands whenever they strike. Ineptitude is never a virtue.