Retailers’ Culture and Attitudinal Barriers Towards the Use of E-Naira
Chapter One
OBJECTIVE OF THE PROBLEM
The general aim of this study is to examine the retailers’ culture and attitudinal barriers towards the use of eNaira. Specifically, the study is set to:
- To determine if the eNaira will have any significant effect on the day-to-day business operations of retailers,
- Determine the extent to which retailers are accustomed to the use of physical cash in running business transactions.
- Determine whether the literacy level of retailers will significantly influence the use of eNaira in carrying out business transactions.
CHAPTER TWO
LITERATURE REVIEW
eNaira
eNaira can be called electronic currency (e-currency) or digital money, or cybercash for Internet transactions. African countries are not left out in adopting e-currency for their citizens to trade/do business locally and internationally. However, some the countries like India, Ghana, South Africa, China, Nigeria, and many more have opted for homegrown e-currency (Abraham, 2021). Through its Central Bank of Nigeria (CBN), the Federal Government of Nigeria has introduced the rollout of its homegrown e-currency called eNaira. The announcement of eNaira came as a surprise to many Nigerians because of the government’s position oncryptocurrency. In February 2021, CBN banned the transaction of cryptocurrencies in Nigeria, citing reasons such as unregulated (uncontrolled), high volatile, susceptible, and discontinuity nature of cryptocurrency and the funding of #EndSars through the use of crypto (Umoru, 2021). Crypto is regarded as a digital currency that facilitates Internet (online) transactions. However, the ban saw traders used alternative means to continue their crypto trading underground (illicit trading) (Abraham, 2021). Countries such as Lesotho, Kuwait, Oman, and Macau have banned cryptocurrencies (Said, 2019). Cryptocurrency is a blockchain currency that facilitates easy payment with a peer-to-peer process. According to Abraham (2021), Nigeria is ranked second behind the United States of America in countries that are trading in cryptocurrency. According to Onukwue (2021), the introduction of eNaira by CBN aimed to discourage cryptocurrency dominance among the youth. However, many Nigerians are wondering about the difference between eNaira and other cryptocurrencies, and many are asking:
- Is Nigeria launching eNaira as a cryptocurrency? No. According to Abiodun (2021), CBN is not offering cryptocurrency through eNaira. They are not the same.
- Will Nigeria lift the ban on crypto trading The introduction of eNaira is not an indication to lift the ban on cryptocurrency in the country.
- Will the launch of eNaira replace the traditional Naira notes? No, both will be operated together to facilitate transactions. However, eNaira is the digital version of Naira.
- How secured will eNaira be? At this point, the security details are not precise. But security remains the talking point of all digital currencies.
- What is the importance of eNaira? According to Olisah (2021) and Abiodun (2021), eNaira will provide and facilitate a cross-border transaction,improve “financialinclusion,monetarypolicyeffectiveness, improved payment efficiency, revenue tax collection, remittance improvement, and targeted social interventions”. These questions and many more beg for additional answers as eNaira continues to operate. Against the questions (confusions) mentioned above. The Nigerian and business community does not understand the challenges and opportunities that come with eNaira. This paper aims to provide a comprehensive understanding of eNaira, the opportunities and challenges for Nigerians and businesses
The operations and characterization of eNaira
Every digital or electronic currency (eNaira) presents opportunities and challenges for traders, especially the informal sectors. eNaira is a digital currency equivalent to fiat Naira (physical or printed Naira notes). Again, eNaira is Naira in a digital form that can only be used on the Internet, without physical notes. eNaira is issued by CBN through the backing of the Federal Government of Nigeria. According to Timi-Koleolu and Aroh (2021), customers (Nigerians) can purchase eNaira through Financial Institutions (FI) and transfer to their ewallets (eNaira Speed Wallet) account. It means that FI can convert normal money in the customer’s bank account into an eNaira wallet, allowing customers to make online transactions easier for individuals and entrepreneurs. Most entrepreneurs in Nigeria are in the informal (unstructured) economy sector, which made cryptocurrency thrive because crypto is unregulated (unstructured). In the same vein, the eNaira can succeed amongst the informal sector if the implementation is unstructured. According to Adiodun (2021) and Olisah (2021), eNaira has some great objectives: increasing financial inclusion, improving revenue and tax collection, improving payment efficiency, improving social interventions, and many others. These objectives are untested in reality.
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 retailers culture and attitudinal barriers towards the use of enaira. Selected SMEs in Lagos 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.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was to ascertain retailers culture and attitudinal barriers toward the use of enaira. 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 addressing an retailers culture and attitudinal barriers toward the use of enaira
Summary
This study was on retailers culture and attitudinal barriers toward the use of enaira. Three objectives were raised which included: To determine if the eNaira will have any significant effect on the day-to-day business operations of retailers, determine the extent to which retailers are accustomed to the use of physical cash in running business transactions and determine whether the literacy level of retailers will significantly influence the use of eNaira in carrying out business transactions. A total of 77 responses were received and validated from the enrolled participants where all respondents were drawn from selected SMEs in Lagos. Hypothesis was tested using Chi-Square statistical tool (SPSS).
Conclusion
Digital currency is a disruptive technological initiative with the ability to revolutionize the financial sector and commerce. The Nigerian government and the apex bank (the CBN) are tapping into the huge opportunities in delivering efficient financial services to the populace through the introduction of eNaira. However, the success of eNaira lies on CBN, FinTechs, and financial sectors to do the basics and carry the populace along in confronting their challenges. The challenges mentioned above can hinder the potential of eNaira to thrive after its implementation in October 2021 and as we advance. This paper analyzed the digital or electronic currency, eNaira, and the opportunities and challenges in the implementation of eNaira. However, in the future, more studies are necessary after the October 2021 eNaira implementation.
Recommendation
The Nigerian government, through its CBN, should build among the populace to believe in the idea.
The success of digital-initiated currency in Nigeria should be driven by an agent different from the conventional CBN banking formation (Abraham, 2021).
The success of eNaira lies in the elimination of the challenges mentioned above and other emerging ones.
The CBN should work with FinTechs in Nigeria and other grassroots agents to drive this eNaira initiative to the people.
The CBN should be flexible in formulating and regulating eNaira and willing to adapt to change in the future.
References
- Abraham, A. (2021). Challenges of the proposed e-naira. Retrived at: https://guardian.ng/opinion/challenges-of-the-proposed-e-naira/ 3.
- Arias, G., & Sánchez, A. (2016). The digital currency challenge for the regulatory regime. Revista Chilena de Derecho y Tecnología, 5(2). 4.
- Bissessar, S. (2016). Opportunities and risks associated with the advent of digital currency in the Caribbean. 5.
- Didenko, A. N., & Buckley, R. P. (2018). The evolution of currency: Cash to cryptos to sovereign digital currencies. Fordham Int’l LJ, 42, 1041. 6.
- eNaira (n.d). Get started. Retrived at: https://enaira.com/wallet/get-started 7.
- Olisah, C. (2021). CBN lists benefits of its digital currency, e-Naira in financial system. Retrived at: https://nairametrics.com/2021/09/10/cbn-lists-benefits-of-its-digital-currency-e-naira-in-financialsystem/ 8.
- Onukwue, . (2021). Nigeria’s eNaira digital currency had an embarrassing first week. Retrived at: https://qz.com/africa/2080949/nigerias-enaira-android-wallet-deleted-days-after-launch/ 9.
- Ozili, P. K. (2021). Central bank digital currency in Nigeria: opportunities and risks. Available at SSRN. 10.
- Paré, G., & Kitsiou, S. (2017). Methods for literature reviews. In Handbook of eHealth Evaluation: An Evidence-based Approach [Internet]. University of Victoria. 11.
