‘eNaira Value Drops To N18.32bn In September 2024’

The Central Bank of Nigeria (CBN) has reported a slight decline in the value of the eNaira, the country’s official digital currency.
According to the CBN’s Monthly Economic Report for October 2024, the eNaira’s value fell by 0.16 per cent, from N18.35 billion at the end of August to N18.32 billion by the end of September.
This decrease comes amid ongoing efforts by the CBN to deepen financial inclusion and strengthen Nigeria’s payment system infrastructure. However, the report showed a contrasting rise in the total value of notes and coins in circulation (CIC), which increased to N4,530.90 billion from N4,292.72 billion over the same period.
“Notes and coins remained the largest component of CIC, increasing from N4,292.72 billion in September 2024 to N4,530.90 billion. Meanwhile, the eNaira’s value decreased by 0.16 per cent to N18.32 billion,” the report stated.
The figures highlight the dominance of physical cash over digital currency in Nigeria’s economy, despite the CBN’s push for a cashless society.
While the eNaira’s value grew by 31 per cent year-on-year to N18.38 billion in Q2 2024, it dropped slightly by 0.16 per cent to N18.35 billion in Q3 2024.
Launched in October 2021, the eNaira is a digital representation of the national currency, intended to complement physical cash. Access to and usage of the eNaira require a digital wallet, which stores the currency and facilitates transactions.
The CBN aims for the eNaira to achieve several key objectives, including promoting financial inclusion, reducing the cost of cash management, enhancing revenue transparency, supporting government welfare initiatives, and strengthening the payment ecosystem.
However, the recent decline in eNaira usage underscores the challenges of encouraging adoption in a predominantly cash-dependent society.
Governor Olayemi Cardoso, who recently launched the CBN’s Payment System Vision 2025, said the apex bank would conduct a comprehensive review of the eNaira’s implementation to improve its effectiveness and economic impact.
The review will focus on identifying barriers to adoption, improving trust, usability, and expanding acceptance of the digital currency. The Payment System Vision 2025 also outlines strategies for modernising Nigeria’s financial system, such as promoting innovative technologies, improving cybersecurity, and aligning with global standards for transaction security and efficiency.