FACTORS INFLUENCING THE E-NAIRA AMONG SMALL AND MEDIUM ENTERPRISES IN BAUCHI STATE
Abstract
The adoption of digital currencies such as e-Naira presents significant opportunities and challenges for small and medium enterprises (SMEs) in Nigeria. This study examines the key determinants influencing the adoption of e-Naira among SMEs in Bauchi State. The research utilizes a questionnaire with SME owners and managers to identify factors that encourage or hinder the adoption of the digital currency. The findings reveal that awareness and understanding of e-Naira, perceived ease of use. While some SMEs showed a positive attitude towards the potential benefits of e-Naira such as reduced transaction costs, faster payment processes, and financial inclusion there are significant barriers, including lack of digital literacy. Additionally, the regulatory environment and initial reluctance from business owners to shift from traditional payment methods to digital ones also pose challenges. Recommendations include the need for targeted awareness campaigns by the Central Bank of Nigeria (CBN) and relevant financial institutions to improve understanding of e-Naira among SME operators. Training programs should also be implemented to enhance digital literacy and cybersecurity knowledge, which would help build trust in digital financial systems. Furthermore, infrastructure development, especially improving internet connectivity, and government policy incentives are critical to encouraging widespread adoption of the e-Naira. Tailored financial incentives, such as tax breaks for early adopters, could also motivate SMEs to adopt the e-Naira.Keyword: Awareness, Ease of use, E-naira, Ease of Use, Security. . ABSTRACTThe adoption of digital currencies such as e-Naira presents significant opportunities and challenges for small and medium enterprises (SMEs) in Nigeria. This study examines the key determinants influencing the adoption of e-Naira among SMEs in Bauchi State. The research utilizes a questionnaire with SME owners and managers to identify factors that encourage or hinder the adoption of the digital currency. The findings reveal that awareness and understanding of e-Naira, perceived ease of use. While some SMEs showed a positive attitude towards the potential benefits of e-Naira such as reduced transaction costs, faster payment processes, and financial inclusion there are significant barriers, including lack of digital literacy. Additionally, the regulatory environment and initial reluctance from business owners to shift from traditional payment methods to digital ones also pose challenges. Recommendations include the need for targeted awareness campaigns by the Central Bank of Nigeria (CBN) and relevant financial institutions to improve understanding of e-Naira among SME operators. Training programs should also be implemented to enhance digital literacy and cybersecurity knowledge, which would help build trust in digital financial systems. Furthermore, infrastructure development, especially improving internet connectivity, and government policy incentives are critical to encouraging widespread adoption of the e-Naira. Tailored financial incentives, such as tax breaks for early adopters, could also motivate SMEs to adopt the e-Naira.Keyword: Awareness, Ease of use, E-naira, Ease of Use, Security. .
Full-Text Access Notice
In accordance with the NERD Policy on promoting peer-reviewed publication, public access to the full text of a project, thesis or dissertation is restricted for three years, allowing the author and supervisors sufficient time to pursue peer-reviewed publication.
During this period, researchers with legitimate academic or research purposes may request authorisation directly from the author to enable NERD to release the indexed full texts of the work using the form below.