Using eNaira CBDC to solve economic problems in Nigeria

Ozili, Peterson K (2023): Using eNaira CBDC to solve economic problems in Nigeria. Forthcoming in:

Abstract

This paper discusses how the eNaira central bank digital currency (CBDC) might be used to solve some economic problems in Nigeria. It presents the eNaira as a payment option, a monetary policy tool and a financial stability tool to solve some economic problems in Nigeria. I show that the eNaira can be instrumental in solving fiscal revenue challenges, controlling inflation, increasing foreign exchange accretion, managing exchange rate, addressing food insecurity, reducing financial stability risks, reducing poverty level, and recovering from a recession. The implication is that the eNaira can support the monetary, fiscal and regulatory authorities in preserving macroeconomic stability. However, a trade-off might arise among policy objectives if the eNaira cannot achieve multiple policy objectives at the same time.

• Item Type: MPRA Paper
• Language: English
• Keywords: eNaira, CBDC, central bank digital currency, fiscal revenue, inflation, foreign exchange, food insecurity, financial stability, poverty, Nigeria, blockchain, exchange rate, recession.
• Subjects: E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E52 - Monetary Policy; E - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E58 - Central Banks and Their Policies

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