A Critical Investigation on the Effectiveness of E-naira Services to Users (Case Study of Selected E-naira Users in Lagos State)




1.1 Background Of The Study

There have not been any broadly agreed definition of digital currency. This is owing to the fact that the digital currency system is a novel transaction system that has never been used before, and it is impossible to compare to traditional money. The term “digital currency” and “virtual currency,” on the other hand, are commonly used interchangeably. According to the Financial Action Task Force (FATF 2014), digital currency is a digital representation of value that may be digitally transferred while functioning as a medium of exchange, unit of account, and store of value, and it works exclusively by agreement among virtual currency users. Similarly, The European Banking Authority (2015) defined virtual currency as “a digital representation of value that is not issued by a central bank or a public authority, is not necessarily attached to a fiat currency, but is accepted as a means of payment by natural or legal persons and can be transferred, stored, or traded electronically.”

The general market and most financial markets have continuously improved strongly. In this sense, systems of transferring products have evolved and adapted to market needs, with the objective of making business transactions as simple as possible (Grinberg, 2012). T here has been rapid development and the introduction of numerous digital currencies. Countries such as China, Sweden, and others have successfully built a digital currency for their various local currencies (Abdulkareem, 2021). In likewise manner, the Nigerian government, have developed a digital currency, which is named “e-Naira”.

According to Emeka (2021), the e-Naira is a digital currency that the Nigerian government aims to issue with the same value as fiat Naira (i.e. physical Naira notes) (i.e. physical Naira notes). It will be purchased by the general public through FI and transferred into users’ e-wallets. It is analogous to the digital renminbi in China and the e-krona in Sweden (SearchNGR, 2021).

The e-Naira platform is designed to function as a wallet for clients to store current funds in their bank accounts, and enable cheaper and faster remittance inflows (SearchNGR, 2021).

Additionally, the CBN added value to the e-Naira platform by ensuring that it offers high-quality services to consumers both in and outside of Nigeria (Abdulkareem, 2021).  In other words, the platform is believed to promote faster transactions, hence improving local and international trade by facilitating faster and safer transactions across nations (Abdulkareem, 2021).   This simply implies that individuals in Nigeria have unfettered access to the worldwide market since the platform encourages international trading and financial exchange. This study therefore will critically analyze the efficiency of the aforementioned services offered by the e-Naira digital platform as perceived by its subscribers.

1.2 Statement Of The Problem

Digital currencies are money that exist not in physical form but simply as electronic data, but perform the core functions of money, being a unit of account, store of value, and means of exchange (Charles 2020).

However, given the expanding use of the digital currency dispensation, various governments across the world, Nigeria inclusive, showed an interest in the operations of digital currencies with the CBDC development appearing as the preferable starting point for them. Hence, the CBN has introduced to Nigerian society the e-Naira digital currency, as it embraces the digital currency dispensation (Emeka, 2021).

E-Naira offers speedy transactions, cheap diaspora remittance, direct government aid, easier local payments, and safe banking as percieved by the researcher. According to Wale (2021), “eNaira was developed with customer expectations in mind, since they recognize the customers are genuine persons whose requirements are always growing. Hence, the strategy to supplying personalised solutions needs to constantly evolve (Emeka, 2021). From functionality, call to action, to user interface, the goal has always been to create an amazing digital experience tailored to an individual’s needs.

Remarkably, the platform ensures that Government financial aids gets straight to persons from the comfort of their locations. More-so, eNaira makes it feasible to send funds, save money, and save time while at it. Boycott the lineups and pay taxes and bills from the comfort of users’ home (Ayodeji, 2021). This study, therefore, is set to meticulously analyze the effectiveness of the acclaimed services offered by the eNaira platform.

1.3 Objective Of The Study

The primary aim of this study is to critically investigate the effectiveness of e-Naira services to users. Specifically, the study is set to:

  1. Ascertain the features of eNaira which are beneficial to individual subscribers.
  2. Ascertain if individual accounts and wallets on the eNaira platform are not subject to scams and fraudulent activities.
  3. Ascertain if the eNaira platform promotes cross-border reliable investment to individual subscribers.

1.4 Research Question

The study will be guided by the following questions:

  1. What are the features of eNaira which are beneficial to individual subscribers?
  2. Are individual accounts and wallets on the eNaira platform subject to scams and fraudulent activities?
  3. Does the  eNaira platform promote cross-border reliable investment to individual subscribers?

1.5 Significance of The Study

The study will be most relevant to the Nigerian populace who are yet to secure an account on the eNaira platform. This is based on the fact that the outcome of this study will educate them on the unique features of the eNaira, which are beneficial to individual subscribers. Enlighten them on whether or not individual accounts and wallets on the eNaira platform are subject to scams and fraudulent activities. Also, apprise them of whether or not the eNaira platform promotes cross-border reliable investment for individual subscribers. The study based on its findings will be useful to the professional bodies regulating the eNaira platform, hence it will keep them informed about public perception of the newly launched platforms. Additionally, the study will serve as a source of information to researchers, students and other academic inclined individuals who may be carrying out research on a related topic.

1.6 Scope Of The Study

Generally, the study is set to critically investigate the effectiveness of e-Naira services to users. However, the study will also cover the following specific areas: identifying the features of eNaira which are beneficial to individual subscribers, ascertaining whether individual accounts and wallets on the eNaira platform are subject to scams and fraudulent activities, and determining if the eNaira platform promotes cross-border reliable investment for individual subscribers. The respondents for this study will be obtained from eNaira subscribers in Lagos State, Nigeria.

1.7. Limitations Of The Study

In the course of carrying out this study, the researcher experienced some constraints, which included time constraints, financial constraints, language barriers, and the attitude of the respondents.

In addition, there was the element of researcher bias. Here, the researcher possessed some biases that may have been reflected in the way the data was collected, the type of people interviewed or sampled, and how the data gathered was interpreted thereafter. The potential for all this to influence the findings and conclusions could not be downplayed.

More so, the findings of this study are limited to the sample population in the study area, hence they may not be suitable for use in comparison to other schools, local governments, states, and other countries in the world.

1.8 Definition Of Terms

Naira: This is the basic monetary unit of Nigeria.

Digital Currency: Digital currencies are monies that exist not in physical form but only as electronic data, but perform the basic functions of money being unit of account, store of value and means of exchange.

eNaira: eNaira is the name given to the CBN’s first proposed digital currency.





Abdulkareem Mojeed, (2021) Businesses in Nigeria must accept e-Naira. Retrieved from https://www.premiumtimesng.com/news/more-news/486095-businesses-in-nigeria-must-accept-e-naira-cbn.html

Ayodeji Adegboyega (2021): Nigeria’s eNaira website opens ahead of digital currency launch. Retrieved from https://www.premiumtimesng.com/news/more-news/487018-nigerias-enaira-website-opens-ahead-of-digital-currency-launch.html

Charles (2020).The Crypto-Currency: Bitcoin and Its Mysterious Inventor.

Emeka Anaeto (2021): CBN gets set for eNaira, more measures put in place. Retrieved from https://www.vanguardngr.com/2021/09/cbn-gets-set-for-enaira-more-measures-put-in-place/

European Central Bank (2015). «Virtual Currency Schemes.

Financial Action Task Force (2014). «Virtual Currencies: Key Definitions and Potential AML/CFT Risks

Grinberg, Ruben (2012). «Bitcoin: An Innovative Alternative Digital Currency.

SearchNGR(2021): https://searchngr.com/enaira-official-website/

Wale Odunsi (2021): E-Naira: Things to know as CBN launches Nigeria’s digital currency. Retrieved from https://dailypost.ng/2021/09/18/e-naira-things-to-know-as-cbn-launches-nigerias-digital-currency/




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