Quiet Collapse Of Buhari’s eNaira Exposes Deep Flaws In Technology, Infrastructure And Public Confidence

 

When Nigeria’s former president Muhammadu Buhari unveiled the eNaira on October 25, 2021, he hailed it as Africa’s first central bank digital currency and a tool that would transform the nation’s economy. The Central Bank of Nigeria (CBN) minted ₦500 million worth of the digital currency at launch, promising that it would deepen financial inclusion, boost remittances, formalize the vast informal sector, and even add $29 billion to GDP over the following decade. With 33 banks onboard and merchants enrolled, the project began with strong political backing and fanfare.

The excitement quickly faded. Technical hitches appeared almost immediately, with the eNaira wallet app pulled from Google Play just days after its launch following poor reviews and complaints of failed transactions and broken support systems. Even after the app returned, many Nigerians reported difficulties linking their bank accounts, while the overall user experience was frustrating and unreliable. The optimism that had accompanied the rollout gave way to skepticism, and the cracks in the project became visible.

Adoption numbers told their own story. By mid-2022, only 0.5 percent of Nigerians had tried the eNaira, and over 98 percent of registered wallets remained inactive. Despite government assurances, the digital currency simply did not find its way into everyday commerce. Most retailers and service providers never integrated it, and citizens who downloaded the wallet found little use for it in practical terms.

Several systemic problems contributed to the eNaira’s stumbles. Nigeria’s infrastructural weaknesses proved a major obstacle, as unreliable electricity and patchy internet access limited the ability of many citizens, particularly in rural areas, to use a digital currency consistently. Beyond infrastructure, a deep trust deficit stood in the way. Nigerians worried about surveillance and privacy, knowing that unlike decentralized cryptocurrencies, the eNaira operated on a centralized, government-controlled blockchain system that allowed the central bank to monitor transactions.

Policy contradictions aggravated public unease. Authorities had previously banned cryptocurrencies like Bitcoin and Ethereum, citing their destabilizing effects, yet rolled out a digital coin of their own. Citizens viewed this as an attempt to control financial transactions rather than empower them. Matters grew worse during the controversial redesign of physical naira notes in late 2022, which sparked severe cash shortages across the country. Instead of pushing people toward digital payments, the crisis bred resentment, with many Nigerians accusing the government of using the eNaira experiment to restrict their access to cash.

Despite poor adoption, the CBN pressed ahead with attempts to breathe life into the digital currency. Partnerships with blockchain firms like Gluwa were announced to improve the wallet’s functionality, integrate credit scoring, and make the system more appealing to both merchants and consumers. By 2024, eNaira wallet usage showed modest growth, reportedly reaching around 12 percent of the population, and transaction volumes saw some uptick. However, compared to the sheer size of Nigeria’s economy, the digital currency remained insignificant, representing less than half a percent of total money supply.

Signs of revival continued to appear in mid-2025, with CBN officials reiterating their commitment to digital finance during public events. Yet these assurances rang hollow when users discovered the official eNaira website inaccessible and the wallet app offline by late August. Without explanation, the system appeared to vanish into digital limbo, raising fresh questions about whether the project had been quietly shelved.

Analysts argue that the failure of Buhari’s eNaira is the result of overlapping challenges. Technical fragility eroded public confidence from the outset, while weak infrastructure created barriers for millions of citizens. Distrust in government, coupled with fears of surveillance, made users hesitant to embrace the platform. Policy inconsistencies, especially the crypto ban and currency redesign, only deepened suspicion. And once adoption numbers stagnated, a vicious cycle set in—merchants saw no reason to accept eNaira, and consumers saw no reason to spend it.

The future of the project remains uncertain. On paper, Nigeria still has the capacity to retool the eNaira, especially with growing global interest in central bank digital currencies. If reimagined with transparency, strong user protections, better technology, and practical integration into daily payments, it could yet regain relevance. But without addressing the deeper issues of infrastructure, trust, and utility, the eNaira risks becoming a cautionary tale of ambition without execution.

What began as a bold symbol of innovation has ended, for now, as a ghost currency, offline and largely forgotten by the citizens it was meant to serve. Nigeria’s journey with the eNaira underscores a simple lesson: financial technology cannot succeed on hype alone; it must be reliable, accessible, and trusted by the very people it seeks to empower.