Can the e-Naira foster financial inclusion in Nigeria? Evidence from structural equation model

Usenobong Akpan () and Aminu Umaru ()
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Usenobong Akpan: Central Bank of Nigeria, Research Department
Aminu Umaru: Central Bank of Nigeria, Research Department

Journal of Social and Economic Development, 2025, vol. 27, issue 3, No 6, 863-881

Abstract: Abstract In this paper, we evaluate the extent to which the e-Naira can bridge the financial inclusion gap in Nigeria. From a survey design of a well-structured questionnaire, we subject the field dataset to the structural equation model (SEM), which combines factor analysis with multiple regression. The choice of SEM also follows from its capacity to handle complex and difficult data that may be non-normal and incomplete. Our results indicate that enhancing access to, quality of, and usage of the e-Naira could have a positive and significant influence on financial inclusion in Nigeria. In particular, we found that a unit increase in e-Naira’s access, usage, and quality could, respectively, lead to a 0.18%, 0.32%, and 0.38% increase in financial inclusion in Nigeria. The results were robust to various standard diagnostic tests. Consequently, the paper provides strong support for the need to further promote access, usage, and quality of the e-Naira in Nigeria as part of the strategies for enhancing financial inclusion in the country.

Keywords: Financial inclusion; CBDC; e-Naira; SEM; E42; O17; C51; C38 (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s40847-024-00407-8

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