A survey of determining factors of eNaira adoption in Nigeria.

Abstract

This study examined the determinants of eNaira adoption in the northwest and northeast of Nigeria being represented by Jigawa and Bauchi States respectively. The study employed the use of Diffusion of innovation theory (IDT) in conjunction with the Technology acceptance model (TAM). The combination of variables that includes Compatibility, Complexity, Trialability and Observability were cowered from IDT and Perceived ease of use was selected from TAM. Perceived risk was added to the evolving conceptual framework considering the nature of the study. Sample of 459 questionnaires were administered of which 312 were returned and dully completed. The questionnaire were analyzed with the help of SPSS and Smart-PLS. The findings of the study revealed that Perceived Risk and Observability are crucial determinants of eNaira adoption. While the Perceived Ease of Use
and observability influences eNaira adoption in a significantly positive direction, complexity and perceived risk relate negatively to eNaira adoption with perceived risk appearing to be a strong determinant. Both Trialability, Compatibility and Complexity appeared to be less important variables in eNaira adoption as there was no significant impact observed from the variables in relation to eNaira adoption. The study recommended that enhancing public visibility and demonstrations, putting strong risk reduction measures into place, streamlining the user experience through better app usability, fewer transaction steps, and multilingual support, re-evaluating the low impact factors, and expanding education and awareness programs particularly those that target underserved populations and rural areas by the CBN.