Nigeria's New Incentive for Citizens to use CBDC

After initially establishing a "cashless" policy in 2012, Nigeria are beginning a new initiative in order to encourage the use of more digital payments in the nation. A year on from the launch of the country's own digital currency, eNaira, Nigeria's central banks have cut the available withdrawal limit through ATMs from $338 to $45 to try and encourage an increase in adoption amongst citizens.

It is reported in Cointelegraph that since the launch of Nigeria's own Central Bank Digital Currency adoption has been low, with less than 0.5% of the population having used the service. According to a CBDC tracker provided by the American think-tank, Atlantic council, Nigeria is one of only 11 countries to have fully launched their own CBDC, with 15 others set to initiate pilot programs; Brazil, the UK, and Japan have all voiced plans for digital currencies, with India's set to launch later this month.

Godwin Emifiele, the Governor of Nigeria's Central Bank has said that they will be reissuing new banknotes in an effort to move further towards digital payments after it was noted that 85% of all Naira is currently held outside of banks. As the nation seeks to amplify financial inclusion and curb corruption, it is the hopes of the Government to boost the effectiveness of the country's monetary policy, make their payment systems more efficient and reduce the cost of physical banking services.