CAN THE CENTRAL BANK DIGITAL CURRENCY (E-NAIRA) FACILITATE FINANCIAL INCLUSION IN MAIDUGURI METROPOLIS OF BORNO STATE?

Abstract

The study seeks to assess whether or not Central Bank Digital Currency (eNaira) will facilitate Financial Inclusion within Maiduguri Metropolis of Borno State. By so doing, descriptive survey research design was employed in which primary data was obtained through the use of structured copies of questionnaires. The population of the study was bankers within the metropolis and its sample size were 68 respondents which were obtained through the sampling technique adopted from the works of Ashwin et al. However, the study was hinged on the Technological Acceptance Model and Diffusion theory of Innovation. The data obtained on the key variables was presented using simple tables, frequency and percentages which was analyzed using the regression model specifically the logistic regression. The study revealed that Central Bank Digital Currency (CBDC) product/services usage and service quality have odd ratios of 5.2149 and 1.7228 which implies that they have positively facilitated financial inclusion whereas Central Bank Digital Currency access has an odd ratio of 0.9384 which indicates that it negatively spurred financial inclusion. In addition, the study shows that public enlightenment, financial illiteracy, cyber-attack and end-user acceptance are the main challenges facing Central Bank Digital Currency within the metropolis. The study concluded that CBDC has facilitated financial inclusion within the metropolis. Furthermore, recommendations were offered which captures the need for the central bank to engage relevant stakeholders on the need to intensify concerted efforts toward creating public awareness and financial education, introduction of a compensation or motivation package by DMBs for users of eNaira which could be in form of interest or Hibah (Gift) for conventional and Islamic banks.