Central Bank Digital Currency Implementation in Nigeria: A Political Analysis

This article attempts to politically analyze the implementation of CBDC in Nigeria. Existing academic literature focuses on the financial and economic aspects of introducing a digital naira. However, the failure of the Nigerian government to implement this project is due to several miscalculations in the political decision to initiate it. The purpose of this paper is to analyze the political aspects of introducing a digital naira in Nigeria in order to develop recommendations for optimizing CBDC implementation in the national economy. The scientific novelty of this study lies in its new perspective on CBDC as an instrument of political control, rather than a solution to financial and economic problems. Furthermore, drawing on a political analysis of the Nigerian precedent, the article offers recommendations for CBDC implementation that are relevant to many countries around the world that are currently developing and testing their own digital currencies. These countries have yet to begin implementing their CBDCs. The methodology of this study is mixed: collected statistical data (World Bank, Global Innovation Index, etc.) are subjected to qualitative analysis based on the principles of monetary theories by G.F. Knapp, J. Brehm’s reactance theory, L. Festinger’s cognitive dissonance theory, S. Tarrow’s resource mobilization theory, and others. Subsequently, conclusions are drawn from the Nigerian precedent of CBDC implementation, and on their basis, recommendations are formulated for the introduction of central bank digital currencies. The practical significance of this study lies in developing recommendations for government agencies facing CBDC implementation: assessing the project’s resource base, preparing society for innovation, selecting the means of project implementation.