DETERMINANTS OF E-NAIRA ACCEPTANCE AMONG MICRO-SMALL AND MEDIUM ENTERPRISES (MSMEs) IN NORTH-EASTERN NIGERIA

Abstract

The Central Bank of Nigeria (CBN) introduced eNaira to simplify and enhance micro and
low-cost payments, aiming to facilitate the realization of a digital economy. This paper
investigated the factors influencing the acceptance and usage of eNaira among Micro, Small,
and Medium Enterprises (MSMEs) in Northeast Nigeria. A sample of 444 MSME
owners/managers was surveyed using a modified framework called the Unified Theory of
Acceptance and Use of Technology (UTAUT), aiming to predict their intention to use eNaira.
The researcher argues that level of awareness, perceived usefulness, perceived ease of use,
attitude towards eNaira, perceived security, social influence, and perceived government
policy are significant determinants of MSMEs’ intention to use eNaira, where perceived ease
of use and perceived usefulness mediate the relationship between awareness and attitude
towards eNaira. The findings revealed that the level of awareness has a significant influence
on PU and PEOU among MSMEs, which subsequently influences their attitude towards
eNaira. While perceived government policy has the strongest influence on MSMEs intention
to use eNaira. The study extends existing models of digital currency acceptance, by providing
governments, policymakers, and financial market operators with an understanding of how
eNaira acceptance is developed in the context of MSMEs in Nigeria. The study recommends
that the CBN should increase public awareness about eNaira and channel government
support interventions through eNaira wallets.