The Central Bank of Nigeria (CBN) has reported a substantial surge of 284.6% in the volume of eNaira in circulation, reaching N9.78 billion in August, as revealed in the bank’s recently released ‘Economic Report’ for the same month.

Traditional notes and coins experienced a decline of 14%, totaling N2.65 trillion during the same period.

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The CBN acknowledged the notable increase in eNaira but highlighted its insignificance compared to the dominant circulation of notes and coins, stating, “There was a substantial increase in the eNaira, which rose by 284.6 per cent to N9.78bn, although the ratio of eNaira to CIC at 0.37 per cent remained insignificant, compared with notes and coins which accounted for 99.63 per cent.”

Regarding currency in circulation, the CBN noted an 11.7% decline, bringing it to N2.66 trillion for the month.

The bank attributed this reduction to the growing preference for alternative payment channels, such as electronic transfers and other digital platforms.

Despite the push for eNaira adoption since its 2021 launch, the report cited data from the International Monetary Fund (IMF) indicating slow adoption.

The IMF’s report, titled ‘Nigeria’s eNaira, One Year After,’ revealed that only 0.8% of Nigeria’s active bank accounts, approximately 860,000 eNaira wallets, were in use as of end-November 2021.

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The report further noted a gradual increase in wallet downloads, indicating a relatively slow uptake by households and merchants.

The CBN’s efforts to promote eNaira adoption face challenges as traditional currency methods continue to dominate, with electronic payment alternatives gaining traction at a slower pace than initially anticipated.