By Modupe Gbadeyanka
The adoption of electronic payment systems by Nigerians has reduced the value of currency-in-circulation in the country, the Central Bank of Nigeria (CBN) has disclosed.
In its recently published Economic Report for August 2023, the central bank said in the period under review, currency-in-circulation decreased by 11.7 per cent to 2.66 trillion.
The bank noted that this was driven by an increase in the use of alternative channels of payment, including electronic transfer payments and other electronic platforms.
“Currency-in-Circulation declined by 11.7 per cent to N2.66 trillion, which moderated the growth in the reserve money,” a part of the report stated.
The CBN also disclosed in the paper that in the period under consideration, the volume of eNaira, the electronic version of the Naira, in circulation soared by 284.6 per cent to N9.78 billion, though it said this was still insignificant when compared to the coins and notes in circulation.
“There was a substantial increase in the eNaira, which rose by 284.6 per cent to N9.78 billion, 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,” it said.
Recall that in 2021, the apex bank introduced eNaira as part of its efforts to promote its cashless policy, which put extra cost on the use of cash. However, this was reversed this month.
Adedapo Adesanya