Determinants of intention to adopt the Nigerian digital currency, the eNaira, for financial transactions in Abuja, Nigeria

Abstract

Nigeria became the first African country to introduce a national digital currency, the eNaira, on October 25, 2021. The primary objectives were to decrease the number of unbanked Nigerians and enhance online transaction efficiency from commercial banks. However, the Central Bank of Nigeria has noted a very low adoption rate, with only 700,000 downloads of the eNaira wallet out of a population exceeding 250 million. This research seeks to identify the key variables influencing eNaira adoption in Nigeria and to develop a model that is both valid and reliable based on these factors. A quantitative research method was utilized, involving an online survey of 120 undergraduate and postgraduate students in Abuja, Nigeria. The data were analyzed using SPSS and Smart PLS tools. The findings revealed that performance expectancy, effort expectancy, social influence, trust and government regulatory positively affect the intention to adopt the eNaira digital currency. however, facilitating condition was not found to positively relate to intention to adopt the eNaira digital currency among the citizens. This study adds to the existing body of knowledge by pinpointing the factors that influence the adoption of the eNaira in Nigeria. It also extends the Unified Theory of Acceptance and Use of Technology (UTAUT) model by incorporating new variables such as trust, government regulations, and technology awareness. The findings offer practical recommendations for policymakers and industry stakeholders in Nigeria and other developing nations considering similar digital currency initiatives.