Nigeria’s Central Bank Targets Taxi Operators to Boost eNaira Adoption

Nigeria’s Central Bank Targets Taxi Operators to Boost eNaira Adoption

Nigeria’s Central Bank is reaching out to three-wheeler taxi operators to promote the adoption of the eNaira, the country’s digital currency. Launched a year ago, the eNaira has seen sluggish adoption, with only 0.5% of Nigerians using it, despite being the first Central Bank Digital Currency (CBDC) in Africa.

Incentives for Adoption

To encourage uptake, the Central Bank is offering a 5% discount to motorized rickshaw drivers and passengers who use the eNaira. This initiative aims to attract unbanked Nigerians, estimated at 40 million, to join the digital economy. However, the strategy has yet to yield significant results, impacting Nigeria’s remittance flows and tax base.

eNaira vs. Cryptocurrency

While the eNaira is a government-backed digital currency, it differs from decentralized cryptocurrencies like Bitcoin and Ethereum. Despite the Central Bank’s efforts to promote the eNaira, it has restricted commercial banks from dealing with crypto exchanges, creating confusion among citizens, including taxi operators.

Public Perception and Challenges

Many Nigerians, including young taxi operators, question the government’s push for the eNaira while criticizing cryptocurrencies. The eNaira is perceived as a symbol of distrust, particularly among the elite, amid rising inflation and economic challenges. Meanwhile, Nigerians show more interest in cryptocurrencies, with over 10% of the population owning crypto assets, according to TripleA.

Conclusion

The Central Bank’s efforts to boost eNaira adoption through taxi operators highlight the ongoing struggle to integrate digital currency into Nigeria’s economy. While the eNaira aims to modernize payments and expand financial inclusion, its slow adoption and competition from cryptocurrencies present significant challenges.