The Central bank of Nigeria started incentivising people to use the Nigerian CBDC (eNaria) in October 2021 but a year later only 0.5% of the population had done so. Consequently, in October 2020 the Central bank said that existing paper notes would be replaced by new note from 1 Feb 2023.
On 2 December 2022, by way of another measure, the Central Bank set cash withdrawal limits: ₦100,000 (about $225) per week for individuals and ₦500,000 (about $1,120) for businesses.
Larger withdrawals were subject to a 5 to10% processing fee. ATM withdrawals were limited to ₦20,000 ($45) per day. Only ₦200 ($0.45) notes or lower denominations were available from ATMs.
As a result of this eNaria usage has increased from 0.5 percent to 6 percent of the population.
Sources:
www.cato.org
www.armstrongeconomics.com
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