The Nigerian Central Bank Digital Currency: Implications for Financial Inclusion and Financial Stability

In 2021 the Central Bank of Nigeria (CBN) introduced a central bank digital currency (CBDC) called “e-Naira”. A digital currency is money or money-like asset stored on a digital platform. CBDCs are seen to provide solutions to a lot of economic and financial problems in many countries including Nigeria in areas of financial inclusion and alternative payment platform. The major objective of this study was to ascertain the effects of e-Naira on financial inclusion and financial stability. This study relied on primary data; data was collected using questionnaire survey from 120 Nigerians. An expert sampling method which is a form purposive sampling technique was adopted. Findings from the study provided evidence that the e-Naira will improve financial inclusion and financial stability and can also serve as an effective tool to achieve the objectives of monetary policies. Also, the study provided evidence that the CBDC in Nigeria can complement the existing electronic payments platforms, and it would have helped in the last currency redesign program in Nigeria. Public awareness is critical in the adoption and usage of CBDCs. Therefore, the study recommends there should be intense campaigns to raise awareness on the usage of e-Naira, especially in the rural areas where most people are financially excluded. In addition, the study recommends that CBN must ensure the stability of value of the local currency as well as guarantee impeccable and smooth technology and security for the e-Naira.

Keywords: E-Naira, Central Bank, Digital Currency, Nigeria, Financial Inclusion, Financial Stability.