- As reported by www.trendsnafrica.com, yesterday, Nigeria joined Bahamas, Sweden, Cambodia and South Korea as nations that are now on the global Central Bank Digital Currency (CBDC) tracking map.
- The adoption of eNaira in Nigeria appears to elicit different perceptions from various players.
As reported by www.trendsnafrica.com, yesterday, Nigeria joined Bahamas, Sweden, Cambodia and South Korea as nations that are now on the global Central Bank Digital Currency (CBDC) tracking map. The adoption of eNaira in Nigeria appears to elicit different perceptions from various players. Experts are of the view that issues like smartphone affordability; network hitches and low awareness may weaken the adoption of eNaira in the country. There are also concerns about competition from the private sector as similar fintech applications like the e-naira are already available in the market.
Network penetration in Nigeria is still primarily 2G and 3G. The country has also invested in 4G and is getting ready to commercially launch 5G by January 2022. However, on 2G, 3G and even 4G, the quality of service offered by operators allegedly is poor. This could hinder the success of eNaira, according to experts.
The purchase of smartphones for most Nigerians, who are battling recession, may be tough due to their low purchasing capacity. A recent report by Alliance for Affordable Internet (A4AI) revealed that despite the extreme advantage of smartphones, they remain unattainable for many across the world due to high costs. A4AI, a global coalition working to drive down the cost of Internet access in low- and middle-income countries of the world, reported that in countries like Nigeria, South Africa, Kenya, the cost of smartphones is almost 45 percent of their monthly income.
Some view the initiative as very elitist while business operators feel that the Federal Government should instead focus on measures to strengthen the Naira to regain its value on a sustainable basis. They also urged the government to prioritize infrastructure development and backward integration to boost export, reduce costs and inflation to revive the economy.
