Emmanuel OchayiThe Central Bank of Nigeria (CBN) has revealed 284.6% increase in eNaira transaction volume for August 2023, reaching N9.78 billion, as reported in its Monthly Economic Report.
Despite this spike, eNaira’s ratio to Currency-In-Circulation (CIC) remains at a modest 0.37%.
“eNaira experienced a surge, rising by 284.6% to ₦9.78 billion, yet the eNaira to CIC ratio stays at 0.37%,” the report outlined.
However, the CBN also disclosed an 11.7% decline in CIC, totaling N2.66 trillion for August. This decline is attributed to the escalating utilization of electronic payment methods, reflecting a shift in business transactions.
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Moreover, total credits for August escalated by 0.8% to N38.55 trillion, with the service sector claiming the lion’s share at 52.2%. Meanwhile, consumer credit soared to N2.99 trillion, marking a 16.9% increase compared to the previous month. The report suggested that heightened demand for credit facilities by economic agents fueled this surge, with personal loans constituting 75.4% of consumer credit.
Despite the CBN’s initiative to promote financial inclusion through eNaira’s launch in 2021, the adoption rate remains low, as highlighted in a 2023 International Monetary Fund (IMF) report.
The IMF observed sluggish growth in wallet downloads among retail users, noting that a majority of eNaira accounts remain inactive, with an average of 14,000 eNaira transactions per week.
The IMF’s assessment underscores the challenge of increasing eNaira’s uptake, despite its noble intentions to enhance financial innovation and efficiency within the Nigerian economy.
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