eNaira: Dead on Arrival or Ready for Resurrection?
Once hailed as the future of Nigerian money, the eNaira, Africa’s first central bank digital currency (CBDC), stormed into the spotlight in 2021. But fast-forward to 2025, and many Nigerians are asking: Is the eNaira dead, or is it silently gearing up for a second act?
Let’s break down what went wrong, what’s changing, and why you might want to keep an eye on this digital currency’s next chapter.
The Chilling Start: Why eNaira Struggled
When the Central Bank of Nigeria (CBN) launched the eNaira, the vision was bold:
“Faster payments, lower costs, better financial inclusion.”
But reality hit harder than expected. The adoption rate was abysmal—less than 1% of Nigerians actively used the eNaira by 2023. Why?
- User Experience Fail: The app was glitchy and confusing for many.
- No Incentive: People already had mobile money, fintech apps, and USSD banking. Why switch?
- Distrust of Government Control: Many feared surveillance or account restrictions.
- Low Merchant Acceptance: Businesses didn’t see the need to integrate it.
Nigerians voted with their thumbs, and mostly ignored it.
2025: Signs of a Resurrection?
But something’s changing in 2025.
Under new CBN leadership, a quiet but aggressive revamp is underway. Here’s what we’re seeing:
Integration with POS terminals
Rewards-based pilot programs in rural markets
Partnerships with fintechs and telcos
Offline and USSD functionality rollout
More importantly, Nigerian banks are now being incentivized to push eNaira wallets, offering discounts on remittances and cross-border payments.
And with the naira’s volatility, the CBN is positioning the eNaira as a more stable digital alternative with programmable features for subsidies, salaries, and micro-credit disbursements.
Is the eNaira a Threat to Fintechs and Banks?
In its first form, fintechs like OPay, PalmPay, and Kuda shrugged it off.
But 2025’s eNaira 2.0 is now competing in their arena:
- Micro-lending: Pilot schemes for CBN-backed nano loans via eNaira are gaining traction.
- Cross-border transfers: eNaira may become a direct remittance channel, bypassing traditional banks.
- Government payments: Salary and subsidy pilots are being tested—cutting out middlemen.
If the CBN can crack mass adoption, banks and fintechs might face a silent disruptor.
Investment and Economic Impact
For investors and businesses, the eNaira revival has two sides:
The Good:
- Boosts digital infrastructure and payment innovation
- Lowers transaction costs for B2C businesses
- Enables faster and traceable B2G transactions
The Risks:
- CBN overreach might crowd out private payment systems
- Increased control and surveillance could deter users
- Confusion between multiple digital wallets and currencies
Insight: The eNaira’s growth may not kill fintechs, but it could reshape how digital payments are taxed, regulated, and monetized in Nigeria.
Final Word: Still Skeptical?
So, is the eNaira dead?
Not quite.
On life support? Maybe.
But resurrection is underway, and this time, it looks smarter.
For now, adoption remains limited. But don’t write it off just yet. In a digital-first Africa, central banks are watching, learning, and iterating. If CBN plays this right, the eNaira may still become Nigeria’s most powerful financial tool, not in headlines, but in silent, everyday transactions