1.1 Introduction
Electronic Naira (E-Naira) is Nigeria currency, money, or money-like asset that is primarily managed, stored or exchanged on digital computer systems, especially over the internet (Abdulkareem, 2021). Digital currency may be recorded on a distributed database on the internet, a centralized electronic computer database owned by a company or bank, within digital files or even on a stored-value card. Digital currencies exhibit properties similar to traditional currencies, but generally do not have a physical form, unlike currencies with printed banknotes or minted coins. This lack of physical form allows nearly instantaneous transactions over the internet and removes the cost associated with distributing notes and coins. However, the issue of creating awareness among the rural dwellers on the digital currency called e-Naira has been a thing of concern in Nigeria.
As a prelude to other parts of this study, this chapter will discuss the background upon which this study was initiated, the statement of problems that led to this study, the Aim and Objectives of the study. Others are Significance of the study, Scope of work, Research hypothesis and questions, Limitations of the Study and Definition of technical terms.
1.2 Background of Study
The general market and the majority of financial markets have changed greatly. In this sense, trading systems have evolved and adapted to market demands, with the goal of making business transactions as simple as possible through the development of digital currencies (Grinberg and Ruben 2012). In light of this, there has been fast growth and the emergence of several digital currencies. A digital currency is a digital representation of either virtual currency (non-fiat) or e-money (fiat) and so is often used interchangeably with virtual currency (Charles 2018).
According to FATF (2014), digital currency is a digital representation of value that is digitally transferred while functioning as a medium of exchange, unit of account, and store of value, and it operates completely via agreement among virtual currency users. Digital currencies have acquired acceptability in the previous few decades, and have steadily and substantially expanded, thereby having a significant impact on the global economy as well as individuals’ financial capacity (UNB2021).
However, digital currencies such as the virtual currency or e-money as articulated by Franco (2015) would have acquired twice the development it has gained so far if not limited to only smart phone users. Digital currencies are made accessible to computer and smart phone users, thereby cutting off feature phone users from using this services. As a result, its expansion, general acceptability, and usability have been severely limited (Franco 2015).
Regardless of this constraint, countries such as China, Sweden, etc., established a digital currency for their own respective local currencies, considering the significance of digital currencies and its economic benefits (McKarle 2019). Likewise, the Nigerian government have designed a digital currency for the country, called e-Naira. E-Naira is a central bank digital currency (CBDC) issued by the Central Bank of Nigeria as a legal tender (Jaizbankplc, 2021). It is the digital form of the Naira and will be utilized just like the Naira notes. Furthermore, Wale (2021), postulated that the e-Naira would function as a wallet against which customers could hold existing funds in their bank accounts, and that the currency would accelerate financial inclusion, allowing for cheaper and faster remittance inflows. On the other hand, e-Naira is a legal tender just like the Naira, which must be accepted by both individuals and business outlets as a means of payment in the country (Emeka, 2021). Following this new development and the mandated usage of the eNaira platform in Nigeria, it is therefore paramount to the challenges and possibilities of feature phone users to access the platform.
According to Okafor (2021), the e-Naira will also bring in the vast majority of the unbanked Nigerians who have no bank account but have a phone into the formal financial economy. With the e-Naira, salary payments and payments for goods and services can be performed without hitches.
According to Abdulkareem (2021), unlike digital banking which includes users dealing with money managed by the bank itself, eNaira is real money generated and maintained by customers in their e-wallets. Consequently, clients will be able to deal with it like fiat money without the participation of middlemen as is the case with digital banking. But the question that emerges on this still remains on the awareness level of the people living in the rural community.
Therefore, in Nigeria where the research was carried out, the activities that was conducted is to examine the Electronic Naira (E-Naira) Awareness in Nigeria's Rural Demographics.
1.3 Statement of Problems
Investigation revealed that creating awareness and information distribution are viewed as vital resource for individuals and communities in both rural and urban locations (Okogbe, 2002). However, awareness provision in rural areas remains a concern. Therefore, it is vital to determine and differentiate between the information requirements of an individual or group and how such information needs are conveyed or channeled to suit these demands.
Furthermore, the challenges that faces the people who dwell in the rural communities across the nation are a bit cumbersome ranging from the unavailability of water, good roads, constant electricity, lack of basic infrastructure and lack of exposure to information etc as stated by Moench & Gyawali, (2008), including the lack of awareness on the recently lunched Nigeria digital currency called e-Naira. This is because many of the citizens of these remote communities do not have access to get information through television and radio.
1.4 Aim and Objectives of Study
The aim of the study is to examine the Electronic Naira (E-Naira) Awareness in Nigeria's Rural Demographics. In achieving this aim, the following specific objectives were laid out as follows:
- To examine if there have been any awareness of e-Naira on the residents in the Nigerian rural demographics;
- To investigate the effect of the development of e-Naira on the resident of the rural demography;
- To find out how to improve awareness of e-Naira to the resident of the rural demographic; and
- To find out the avenue through which these awareness was communicated to the people of the rural demographics.
1.5 Research Questions
The study came up with research questions so as to be able to ascertain the above stated objectives. The specific research questions for the study are stated below as follows:
- Is there any awareness of e-Naira on the residents in the Nigerian rural demographics?
- How can there be improvement on the awareness of e-Naira to the resident of the rural demographic?
- What is the avenue through which these awareness was communicated to the people of the rural demographics?
- What is the effect of the development of e-Naira on the resident of the rural demography?
1.6 Research Hypothesis
In order to pursue the objective of this study, the following generalized statements have been designed to guide and aids in obtaining the result for the experiment to be conducted. For this work, the null hypothesis will be represented with H0 while the alternative hypothesis will be represented with hypothesis H1.
Hypothesis One
- H0: There is no significant awareness of e-Naira on the residents in the Nigerian rural demographics
- H1: There is significant awareness of e-Naira on the residents in the Nigerian rural demographics
1.7 Significance of Study
This study will be of benefit to the Nigerian government as it will be exposed to the lapses in the dissemination of information to the people in the rural demographic; it will also help the government in reaching out to the rural dwellers on the need to include rural dwellers on invest opportunity with e-Naira.
This study will also be significant to the academic community as it will contribute to the existing literature and serve as a guide for student who may want to carry out research on the topic.
1.8 Scope of Study
The scope of the research is focused on the Examination of Electronic Naira (E-Naira) Awareness in Nigeria's Rural Demographics. The study is delimited to the resident of Okpe local government Delta State.
1.9 Limitations of the Study
During the course of this study, many things militated against its completion, some of which are:
- Time Constraint: The time frame given to accomplish this project was very short due to school academic calendar and it was carried out under pressure which made the researcher not to implement some necessary features.
- Research material: availability of research material is a major setback to the scope of the study.
- Frequent power failure: This made the researcher append more money on fuel to ensure sustainable power.
- Financial Constraint: Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).
1.10 Definition of Terms
E-Naira: It is the digital form of the Naira and will be used just like cash.
Rural Demographics: all population, housing, and territory not included within an urban area.
Challenge: This is an uneasy situation or a factor which serves as an impediment to the success of an activity.
