A Critical Investigation on the Impact of E-naira on POS Business in Nigeria
Chapter One
Objective of the study
The broad focus of this study is to examine the critical investigation on the impact of e-naira on POS business in Nigeria. Specifically the study seek to:
- Examine if the launching of e-Naira will widen the scope of the services rendered by POS retailers.
- Investigate if the launching of e-Naira will improve the profitability of POS business owners.
- Ascertain if the public adoption of e-Naira will broaden the challenges of POS business
- Determine if the public acceptance of e-Naira will threaten the survival of POS business since they serve only as Bank agents
CHAPTER TWO
REVIEWED OF RELATED LITERATURE
Enaira
Fiat currency is issued by the government through its national bank (apex bank) as fiat money (for example, paper notes), while electronic money (e-money) or digital currency is the same currency digitally (fiat digital currency) (Ozili, 2021; Arias & Sánchez, 2016). Digital currency operates like fiat currency in the payment of goods and services over the Internet. Over the years, digital or electronic currencies like Bitcoin, Ethereum, Ripple Price, Dogecoin, and many others have increased in popularity and acceptance (Abiodun, 2021). Originally, Bitcoin was initiated in 2008 and began operation in 2009 by Satoshi Nakamoto (Didenko & Buckley, 2018; Bissessar, 2016). Since then, many others have emerged, and the acceptance has kept growing locally and internationally. The growth and large acceptance of cryptocurrencies are attributed to the success stories of those who made a huge amount of money within a short and long period on their investment. Furthermore, the success of cryptocurrencies is seen in its decentralized nature, which means that anyone can participate (trade) from any country without exclusion. Central banks (apex banks) and governments worldwide are busy monitoring the advancement of digital currencies and their challenges (Said, 2019). Their monitoring is resulting in many central banks introducing digital currencies like in the case of eNaira. eNaira is a digital currency operated by the Nigerian government through its CBN. Governments run digital currency through central bank digital currencies (CBDCs) in making Internet transactions easier. Nigeria is the first African to introduce a digital currency called eNaira (Ozili, 2021). According to Abiodun (2021), CBDCs are the digital currencies operated by the government to offer digital currencies, for example, eNaira. However, these digital currencies, including eNaira, have some opportunities and challenges for the apex bank and the customers.
A digital currency refers to alternative method of payment that occurs without holding physical currency in an electronic form. These currencies are issued, regulated and controlled by central bank, and supported by the government. This is absolutely different with extant electronic money, which is issued by central banks but its usage is limited to the banks and financial institutions selected. Digital currency (eNaira) is an electronic version of the physical Nigeria currency issued by CBN which is equal in value with the physical currency. It is not with the motives of replacing cash but functioning as an alternative means of settling debt and payment. The eNaira is central bank digital currency (CBDC) issued by the government which possesses the same value as the flat currency. eNaira is not in coins form neither is in notes format, it is virtual designed format. It is translated that eNaira cannot be hold physically but can be stored in value. It is legally backed by central bank to make payment. CBDC is a direct central bank liability, and can be exchanged, and transferred using blockchain as a technology to regulate and protect eNaira. It refers to a system which stores transaction records across computers network for effective eNaira implementation.eNaira shall be controlled and administered by CBN through the Digital Currency Management System (DCMS). DCMS provides digital currency and stable coin solutions to CBN, financial institutions and ecosystem participants worldwide.
CHAPTER THREE
RESEARCH METHODOLOGY
INTRODUCTION
In this chapter, we described the research procedure for this study. A research methodology is a research process adopted or employed to systematically and scientifically present the results of a study to the research audience viz. a vis, the study beneficiaries.
RESEARCH DESIGN
Research designs are perceived to be an overall strategy adopted by the researcher whereby different components of the study are integrated in a logical manner to effectively address a research problem. In this study, the researcher employed the survey research design. This is due to the nature of the study whereby the opinion and views of people are sampled. According to Singleton & Straits, (2009), Survey research can use quantitative research strategies (e.g., using questionnaires with numerically rated items), qualitative research strategies (e.g., using open-ended questions), or both strategies (i.e., mixed methods). As it is often used to describe and explore human behaviour, surveys are therefore frequently used in social and psychological research.
POPULATION OF THE STUDY
According to Udoyen (2019), a study population is a group of elements or individuals as the case may be, who share similar characteristics. These similar features can include location, gender, age, sex or specific interest. The emphasis on study population is that it constitutes of individuals or elements that are homogeneous in description.
This study was carried to examine a Critical Investigation on the Impact of E-Naira on POS Business in Nigeria. POS operators in Awka, Anambra state form the population of the study.
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
INTRODUCTION
This chapter presents the analysis of data derived through the questionnaire and key informant interview administered on the respondents in the study area. The analysis and interpretation were derived from the findings of the study. The data analysis depicts the simple frequency and percentage of the respondents as well as interpretation of the information gathered. A total of eighty (80) questionnaires were administered to respondents of which only seventy-seven (77) were returned and validated. This was due to irregular, incomplete and inappropriate responses to some questionnaire. For this study a total of 77 was validated for the analysis.
Demographic profile of the respondents
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was to ascertain a Critical Investigation on the Impact of E-Naira on POS Business in Nigeria. In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in Critical Investigation on the Impact of E-Naira on POS Business in Nigeria
Summary
This study was on a Critical Investigation on the Impact of E-Naira on POS Business in Nigeria. Three objectives were raised which included: Examine if the launching of e-Naira will widen the scope of the services rendered by POS retailers, investigate if the launching of e-Naira will improve the profitability of POS business owners, ascertain if the public adoption of e-Naira will broaden the challenges of POS business and determine if the public acceptance of e-Naira will threaten the survival of POS business since they serve only as Bank agents. A total of 77 responses were received and validated from the enrolled participants where all respondents were drawn from POS operators in Awka, Anamabra state. Hypothesis was tested using Chi-Square statistical tool (SPSS).
Conclusion
In conclusion, the critical investigation on the impact of the E-Naira on the POS business in Nigeria has shed light on the potential benefits and challenges associated with the digital currency. The implementation of the E-Naira holds the promise of enhancing the efficiency, security, and inclusivity of the POS ecosystem, leading to numerous positive outcomes for businesses, consumers, and the overall economy.
One significant advantage of the E-Naira is its potential to streamline transaction processes, reducing the reliance on physical cash and improving overall efficiency. With digital payments becoming more accessible and convenient, both merchants and customers can benefit from faster and more secure transactions. Moreover, the E-Naira’s integration with existing payment systems and infrastructure can contribute to financial inclusion, allowing individuals without access to traditional banking services to participate in the digital economy.
The investigation also highlighted certain challenges that need to be addressed for a successful integration of the E-Naira into the POS business ecosystem. One major concern is the need for robust cybersecurity measures to ensure the safety of digital transactions and protect against potential fraud or hacking attempts. Additionally, sufficient technological infrastructure and reliable internet connectivity are essential for the widespread adoption and smooth operation of the E-Naira.
Furthermore, it is crucial for the government and regulatory authorities to provide clear guidelines and policies regarding the usage and implementation of the E-Naira. This includes addressing concerns related to data privacy, consumer protection, and regulatory compliance. A well-defined regulatory framework will help build trust among businesses and consumers, encouraging wider acceptance and adoption of the E-Naira in the POS business sector.
Overall, the critical investigation suggests that the implementation of the E-Naira has the potential to significantly transform the POS business landscape in Nigeria. The adoption of digital currency can enhance financial inclusion, improve transaction efficiency, and stimulate economic growth. However, it is crucial for stakeholders to work collaboratively, addressing the challenges and ensuring the necessary infrastructure, cybersecurity measures, and regulatory framework are in place for the successful integration of the E-Naira. By doing so, Nigeria can pave the way for a more inclusive and digitally driven economy, benefiting businesses, consumers, and the nation as a whole.
Recommendation
Based on the critical investigation conducted on the impact of the E-Naira on the POS business in Nigeria, the following recommendations are proposed:
- Robust Cybersecurity Measures: To ensure the secure implementation of the E-Naira, it is imperative to invest in robust cybersecurity measures. This includes implementing encryption protocols, adopting multi-factor authentication, and regularly updating security systems to protect against cyber threats. Collaboration between government agencies, financial institutions, and technology providers is crucial in developing and implementing comprehensive security measures.
- Technological Infrastructure: The success of the E-Naira relies on a reliable technological infrastructure, including widespread internet connectivity and a robust payment ecosystem. Investments should be made to improve internet connectivity in both urban and rural areas, ensuring that businesses and consumers have seamless access to digital transactions. Additionally, efforts should be made to upgrade existing POS systems and ensure interoperability among different payment platforms.
- Regulatory Framework: A clear and comprehensive regulatory framework is essential to govern the implementation and usage of the E-Naira. Regulatory authorities should collaborate with industry stakeholders to develop guidelines and policies that address data privacy, consumer protection, anti-money laundering measures, and fraud prevention. Regular monitoring and enforcement of these regulations will be crucial to maintain trust and confidence in the digital currency ecosystem.
- Public Awareness and Education: Extensive public awareness campaigns and educational programs should be conducted to familiarize businesses and consumers with the benefits, functionality, and security features of the E-Naira. By providing accurate information and addressing misconceptions, stakeholders can promote the adoption of digital payments and alleviate concerns regarding the use of the E-Naira in the POS business sector.
- Collaboration and Partnership: Effective collaboration between the government, financial institutions, technology providers, and business associations is essential for the successful integration of the E-Naira. Partnerships can facilitate the development of innovative solutions, encourage the adoption of digital payment technologies, and ensure the smooth functioning of the POS ecosystem. Stakeholders should work together to address challenges, share best practices, and create an enabling environment for the widespread acceptance of the E-Naira.
- Continuous Evaluation and Feedback: It is crucial to conduct ongoing evaluation and monitoring of the impact of the E-Naira on the POS business sector. Regular feedback from businesses, consumers, and other stakeholders will help identify areas for improvement, address emerging challenges, and adapt the implementation strategy as needed. This iterative approach will contribute to the continuous development and optimization of the E-Naira ecosystem
References
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