Nigeria’s Central Bank in Talks with R3 to Improve eNaira Adoption After Slow Uptake

The Central Bank of Nigeria (CBN) is reportedly in talks with blockchain firm R3 (developer of DLT platform Corda) to develop a new system for its central bank digital currency (CBDC), the eNaira. The CBN originally worked with Bitt Inc. to issue the eNaira in 2021, however, it reportedly wants to develop its own software for the CBDC to “maintain full control”.

Nigeria was the first African nation to issue a digital version of its national currency in October 2021, and the eNaira was used for around $10m worth of transactions in its first year.

However, according to Bloomberg, the uptake for the eNaira has been less than 0.5% to date.

Heritage Falodun, writing an opinion piece for Bitcoin Magazine, said that the Nigerian government recently resorted to extreme measures to “incentivize” the adoption of its eNaira.

The Nigerian government placed restrictions on the amount of cash that can be withdrawn, limiting withdrawals from banks to about $225 (around 100,000 Naira per week).

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Falodun believes that the government’s actions are having a detrimental effect on people’s financial situation in Nigeria. Instead of the stated goal of “financial inclusion”, Nigeria is gradually moving from “banking the unbanked” to “un-banking the banked.”

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