Is Nigeria Forcing its CBDC (eNaira) on its Citizens? The Truth Unveiled

Nigeria\'s journey toward a cashless economy has been fraught with controversy, particularly surrounding the introduction and adoption of its Central Bank Digital Currency (CBDC), the eNaira. In 2025, the Central Bank of Nigeria launched its CBDC (the eNaira), with the hope of transitioning to a cashless economy. But is Nigeria truly forcing its CBDC on its citizens, or is this simply a push towards modernization?

The eNaira Launch and Initial Incentives

Nigeria launched its CBDC, the eNaira, with the hope of transitioning to a cashless economy. The government initially attempted to encourage adoption by offering incentives such as removing [mention a specific incentive, if available and accurate]. This was intended to make the eNaira an attractive alternative to traditional cash transactions. Nigeria’s CBDC is an intermediated CBDC where banks and other financial institutions act as a third party between users and the central bank.

Resistance and Cash Shortages Fuel Concerns

However, the eNaira\'s adoption has been significantly lower than anticipated. The Central Bank of Nigeria has encountered trouble in convincing Nigerians to employ the CBDC. A dainty 0.5 percent of the population has been using the CBDC since its inception. Adding to the friction, recent cash shortages have exacerbated existing anxieties and fueled accusations of coercion. In Nigeria, citizens have taken to the streets to protest the nation’s cash shortage, further objecting to their government’s implementation of a central bank digital currency. This situation has led many to believe that the government is deliberately creating a cashless environment, even against the will of the people.

Arguments for and Against Forced Adoption

Some critics argue that "The Nigerian government is intentionally forcing its citizens into a cashless Keynesian economy while they position their surveillance CBDC - eNaria as final destination.” They see the cash shortages and the push for the eNaira as a coordinated effort to exert greater control over financial transactions and potentially implement surveillance measures.

Conversely, proponents argue that the eNaira offers numerous benefits, including increased financial inclusion, reduced transaction costs, and greater transparency. They maintain that the move towards a cashless society is a natural progression in the digital age and that the eNaira is simply a tool to facilitate this transition.

The Reality: A Complex Situation

The truth likely lies somewhere in between. While the government may genuinely believe in the benefits of the eNaira, the combination of cash shortages, limited adoption, and concerns about surveillance has created a climate of mistrust. It\'s crucial for the Nigerian government to address these concerns openly and transparently, ensuring that the transition to a cashless economy is voluntary and benefits all citizens, not just a select few. In Nigeria, citizens have taken to the streets to protest the nation’s cash shortage, further objecting to their government’s implementation of a central bank digital currency.

Further developments are awaited to observe the eNaira\'s future trajectory in Nigeria.