Nigerian Journal of Banking and Financial Issues (NJBFI)

DIGITAL CURRENCY ADOPTION AND FINANCIAL STABILITY: A POLICY REVIEW OF THE ENAIRA FRAMEWORK IN NIGERIA

Abstract

This study examines how central bank digital currency (CBDC) policy design and governance shape adoption outcomes and financial stability, using Nigeria’s eNaira as a live case in a bank-dominated emerging economy. Motivated by the observed gap between policy ambition and modest eNaira uptake, the study integrates a conceptual–empirical framework that links policy design variables to behavioural adoption mechanisms and financial-stability transmission channels. Using a policy review and case study approach, the analysis draws on regulatory documents, recent empirical adoption studies, and established CBDC stability frameworks. The findings show that while the eNaira framework is strongly aligned with international best practice in terms of institutional architecture and stability safeguards, adoption remains constrained due to weak trust, limited perceived usefulness, insufficient merchant integration, and misaligned intermediary incentives. As a result, the realised impact of eNaira adoption on financial stability has so far been minimal. By explicitly linking adoption pathways to stability outcomes, the study provides policy-relevant insights on how incremental design and implementation adjustments can strengthen CBDC adoption without undermining financial-system resilience.