Shifting Strategy for Nigeria’s Digital Currency

Nigeria’s Central Bank (CBN) is quietly repositioning its eNaira digital currency after a slow adoption period. Launched in October 2021 as Africa’s first CBDC, the eNaira has struggled to gain widespread use.

The CBN recently acknowledged this in its Payments System Vision (PSV) 2028 strategy document. While the eNaira currently supports “millions of wallets,” it has processed only approximately NGN 22 billion (USD 16 million) in transactions—a fraction of Nigeria’s total electronic payments and far below initial targets.

From Consumer Tool to Infrastructure Backbone

The CBN now aims to transform the eNaira into a backend infrastructure for government disbursements, cross-border settlements, and other wholesale applications rather than competing directly with existing payment platforms. This shift recognizes that the CBDC currently offers limited advantages over established bank apps and fintech wallets.

Key Elements of the New Strategy:

• Government payments focus: Prioritizing eNaira for G2P transactions like welfare disbursements
• Cross-border settlements: Leveraging the CBDC to facilitate trade under the AfCFTA
• Integration with broader digital ecosystem: Positioning the eNaira alongside initiatives in open banking and digital identity

The repositioning reflects a broader strategic shift at the CBN under Governor Olayemi Cardoso, who has prioritized economic stabilization and investor confidence.

While some analysts note tensions between past performance and future ambitions, the CBN appears determined to find a sustainable role for Africa’s first CBDC in Nigeria’s evolving digital payments landscape.