Nigeria’s eNaira, One Year After

IMF Working Papers, May 16, 2023

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The eNaira is the first CBDC in Africa.
The project achieved undisrupted operation for the first full year.
Adoption remains limited and has not moved beyond the initial wave of limited adoption.
Network effects imply that the initial low adoption spell will require a coordinated policy drive to break it.
The eNaira can either complement or substitute mobile money; realizing financial inclusion potential requires a strategy to set the right relationship with mobile money.
Cost savings from integrating CBDC—as a bridge vehicle—in the remittance process may be substantial.

Implement a coordinated policy drive to overcome initial low adoption stemming from weak network effects.
Develop a clear strategy defining how the eNaira should interact with mobile money to maximize financial inclusion and avoid harmful substitution effects.
Explore integration of the eNaira into remittance corridors as a bridge vehicle to capture potential cost savings in the remittance process.

Monitor adoption metrics beyond the initial wave to assess effectiveness of policy interventions targeting network effects.
Evaluate comparative outcomes when the eNaira complements versus substitutes mobile money services.
Quantify remittance cost savings from CBDC integration in operational pilots to inform scale-up decisions.

IMF Working Paper No. 2023/104