When Nigeria’s Central Bank lifted its ban on cryptocurrency transactions in 2023, it seemed like a quiet policy reversal.
Yet, less than two years later, that decision has reshaped the country’s financial system with the launch of cNGN, Nigeria’s first regulated stablecoin.
The cNGN, short for Compliant Nigerian Naira, is pegged 1:1 to the naira and backed by real reserves. Since its debut, it has recorded a total trading volume of ₦16.8 billion, with a 24-hour turnover of ₦246.9 million. By the third quarter of 2025, 55,198 online transactions had been carried out using the token.
The token is mainly designed to merge traditional finance security with blockchain technology’s innovation, making it different from digital tokens, which are always used for speculation.
Meanwhile, this is an opportunity for millions of Nigerians excluded from formal banking to save, transfer funds, and engage with the digital economy on safer terms.
Consortium driving Nigeria’s cNGN stablecoin
The Africa Stablecoin Consortium (ASC)—a partnership of banks, fintech firms, and blockchain experts—developed the cNGN to create a regulated digital version of the naira that can move easily across platforms and exchanges.
To make this possible, the consortium worked closely with regulators, especially the Securities and Exchange Commission (SEC), which introduced rules requiring issuers to hold reserves, verify users, and implement strict anti–money laundering measures.
Unlike earlier crypto projects in Nigeria that often operated outside official oversight, cNGN was designed with regulation at its foundation. Each token is backed by naira reserves held in local banks, ensuring that every cNGN in circulation is supported by real money safely stored within the system.
Local platforms that have adopted the token
Several local platforms have already started adopting the token. Busha, one of Nigeria’s leading fintech firms, has integrated cNGN into its liquidity system and will mint or burn tokens based on demand.
Quidax has also rolled it out, making it easy for users to trade and transfer. Other platforms, such as ButterSwap, Ultra App, and ChainFundMe, have joined in, helping cNGN gain ground as part of Nigeria’s digital ecosystem and offering a homegrown alternative to global crypto platforms.
A key feature of cNGN is its interoperability. Unlike many digital assets tied to single platforms, it is built to work across multiple blockchains. This makes it compatible with Nigeria’s fintech networks while linking to the global digital economy, giving individuals and businesses more flexibility.
But the token’s potential goes far beyond trading. For ordinary Nigerians, it promises faster, cheaper payments, cutting down the costs and delays often seen in traditional banking. For families relying on remittances, it could make cross-border transfers quicker and more affordable.
Businesses also stand to gain through smoother cross-border settlements, simpler payroll management, or new lending opportunities where cNGN can be used as collateral.
In a country where inflation continues to erode savings, stablecoin provides an alternative store of value—anchored to the naira but designed with the speed and efficiency of digital finance.
Background of the Project
The launch of cNGN follows a turbulent few years in Nigeria’s financial sector.
In 2021, the Central Bank of Nigeria (CBN) shocked the market by prohibiting banks from processing cryptocurrency transactions. The move was seen as an attempt to curb speculation and shield the financial system from volatility. But, as global crypto adoption accelerated, the ban proved difficult to enforce.
By late 2023, the CBN recognised the shifting financial pattern and lifted the restrictions, allowing banks to return to digital assets.
Not every platform has rushed to embrace the new token. Yellow Card, one of Africa’s largest exchanges, has adopted a wait-and-see stance, questioning whether cNGN provides real advantages over Nigeria’s efficient instant bank transfer system.
Despite its promise, the project faces several hurdles: low awareness, naira dependence, the risk of de-pegging, and a lack of trust in institutions.
cNGN and USDT or USDC
Once again, it is essential to note that cNGN is not designed to replace dollar-pegged stablecoins such as USDT or USDC, which many Nigerians use to hedge against inflation.
Instead, it complements them by offering a naira-based solution for domestic payments, payroll, and everyday transactions.
Dollar-backed tokens may remain the preferred choice for wealth preservation, but cNGN fills a different gap, digitising the local currency for speed and efficiency.