CONCEPTUALIZATION OF eNAIRA’S PROSPECTS ON NIGERIA’S MACROECONOMIC CHALLENGES

Abstract

Nigeria’s macroeconomic environment is marked by persistent inflation, exchange rate volatility, and high poverty levels, prompting the need for innovative monetary tools. This study explores the potential of the Central Bank of Nigeria’s digital currency, the eNaira, to address these challenges. Adopting a conceptual analysis grounded in monetary and economic theory, the paper explores the design, implementation, and future macroeconomic implications of the eNaira within Nigeria’s unique fiscal and monetary system. Findings suggest that eNaira may not solely contribute to resolving existing structural issues such as inflation or poverty, but it holds promise in enhancing financial inclusion, improving cross-border payments, and strengthening monetary policy transmission if properly integrated within the system. The study concludes that eNaira’s effectiveness depends on robust regulatory frameworks, strategic public adoption, and technological interoperability. It recommends a phased implementation approach, improved stakeholder engagement, and continuous evaluation mechanisms to maximize the eNaira’s macroeconomic impact.