CENTRAL BANK OF NIGERIA’S DIGITAL CURRENCY (eNaira) AND FRAUD DETECTION/PREVENTION: IMPLICATIONS FOR NIGERIA’S ECONOMIC GROWTH

ALINNO, Francis Chidi
Department of Business Administration and Management
School of Business Studies
Akanu Ibiam Federal Polytechnic, Unwana, Ebonyi State
alinoy2000@yahoo.com
ABSTRACT
Fraud, a prevalent crime across the globe, targeted at vulnerable people/agencies and businesses, is now a
serious concern with significant financial and non-financial harm to the growth of Nigeria’s economy. Its
economic menace was one of the thrusts for designing Central Bank of Nigeria’s digital currency (eNaira). It
is seen as a homogeneously constructive tool that can detect and prevent fraud and make business transactions
more transparent, accountable, and less corrupt. Its capacity as an imperfect replacement for cash and
substitute for bank deposits with benefits of boosting inclusion and integrating millions of unbanked Nigerians
into the banking sector is part of the reasons for designing eNaira. For an in-depth understanding of fraud,
white-collar crime and fraud triangle theory were considered and some casual factors present in every fraud
situation (pressure, rationalization and opportunity) were noted. Inference, eNaira can be effective in detecting
and preventing fraud when stakeholders see those who commit fraud as criminals and treat them as such; when
the value orientation about wealth acquisition and ostentatious life style, acceptance and recognition of people
convicted of fraud or known to have made their wealth through dubious means stops, when public servants
who embezzle and misappropriate public funds are adequately punished for such crime instead of being
celebrated.
Keywords: Digital currency, fraud detection, fraud prevention, economic growth