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Is Nigeria’s eNaira Dead? CBN Forms New Task Force for Official Stablecoin

Nigeria’s central financial institution has shaped a brand new activity drive to discover the adoption of stablecoins, elevating questions over the way forward for the nation’s digital forex, the eNaira.

Central Bank of Nigeria (CBN) Governor Olayemi Cardoso announced the formation of the working group throughout a press briefing on the conclusion of the annual World Bank and International Monetary Fund (IMF) conferences in Washington, D.C.

Cardoso stated the Central Bank, in collaboration with the Ministry of Finance and different monetary regulators, has created devoted groups to evaluate the broader implications and potential framework for introducing an official Nigerian stablecoin.

The transfer comes amid sluggish adoption of the eNaira and rising public skepticism towards its efficiency.

CBN’s eNaira Struggles to Survive Amid Widespread Inactivity and Public Disinterest

According to IMF information printed in 2023, solely 0.5% of Nigerians had adopted the eNaira a 12 months after its rollout, with 98.5% of wallets remaining inactive.

The variety of eNaira wallets reportedly reached 13 million by early 2024, however most of them haven’t been used.

Total transaction quantity because the launch was round ₦29.3 billion, with simply over 850,000 transactions recorded, far under expectations for a rustic of over 200 million folks.

Source: The Cable

The cell app, as soon as obtainable on each Google Play and Apple shops, has been removed from Google’s platform, and the USSD code (*997#) not capabilities.

The final submit from the eNaira’s official social media accounts was in August 2023, whereas customers making an attempt to entry the platform have reported persistent login and one-time password points.

In August, the CBN admitted that the eNaira had failed to realize widespread acceptance, citing low consciousness and weak consumer schooling.

Efforts to revive the mission included a partnership with blockchain agency Gluwa in March 2024 to upgrade technical infrastructure and an announcement in September to broaden eNaira use for authorities funds.

Despite these efforts, the platform stays largely inactive. Public sentiment towards the digital forex has been lukewarm.

On social media, Nigerians have dubbed it “E-vanish” and “E-dead,” reflecting frustration over its poor usability and lack of tangible advantages in comparison with money or non-public crypto belongings.

CBN’s Olayemi Cardoso Says Stablecoins Key to Balancing Innovation and Stability

According to Cardoso, discussions round stablecoins featured prominently through the world monetary conferences. “The message from there’s that we should help innovation whereas managing the dangers that include it,” he stated.

“No one needs to stifle innovation, nevertheless it’s equally vital to steadiness that innovation with monetary stability.”

The announcement follows a sequence of regulatory shifts in Nigeria’s digital finance sector.

In 2024, the Africa Stablecoin Consortium (ASC), a bunch comprising Nigerian banks and fintech companies, received approval from the CBN to launch the cNGN stablecoin inside its regulatory sandbox.

The consortium described the cNGN as compliant with the requirements set by the CBN, the Securities and Exchange Commission (SEC), and the Nigerian Financial Intelligence Unit.

It was designed to enrich, not substitute, the eNaira, the cNGN is interoperable with main blockchains, together with BNB Smart Chain and Bantu, with plans to broaden to different networks.

Cardoso stated the transfer towards stablecoin exploration was per the CBN’s drive to help innovation whereas preserving financial stability.

He additionally revealed that the financial institution has been holding technique classes with fintech leaders underneath the theme “Shaping the Future of FinTech in Nigeria: Innovation, Inclusion, and Integrity.”

However, the brand new stablecoin initiative comes at a time when the eNaira mission seems to have misplaced momentum.

Nearly 4 years after its October 2021 launch, the eNaira has seen declining consumer exercise, restricted pockets engagement, and diminishing public curiosity. Meanwhile, stablecoins have turn out to be deeply embedded in Nigeria’s crypto economic system.

Nigeria Ranked sixth Globally in Crypto Adoption as Stablecoin Use Soars

Between July 2023 and June 2024, stablecoin transactions in Nigeria reached practically $22 billion, the best in sub-Saharan Africa, according to information from Yellow Card.

Stablecoins accounted for 43% of whole crypto transactions within the area, with USDT main at over 88% of utilization. The rising attraction of stablecoins mirrors the broader surge in crypto exercise throughout the nation.

Source: Chainalysis

Between 2024 and 2025, Nigeria processed roughly $59 billion in crypto transactions, rating second globally behind India, according to Chainalysis.

According to Chainalysis information, Nigeria is ranked 6th in the Global Crypto Adoption Index 2025.

Stablecoins, used primarily for remittances and as a hedge in opposition to naira volatility, now dominate retail-level trades.

At the identical time, the IMF’s newest evaluation has mirrored renewed optimism about Nigeria’s broader financial outlook.

The Fund upgraded Nigeria’s development forecast to three.9% for 2025 and 4.2% for 2026, citing rising oil output, stronger investor confidence, and improved fiscal circumstances.

IMF Economic Counsellor Pierre-Olivier Gourinchas credited reforms similar to gas subsidy removing and overseas trade unification for stabilizing inflation and strengthening the naira.

Cardoso echoed this sentiment through the briefing, saying inflation has began to ease resulting from “disciplined financial tightening” and “enhanced transparency” within the foreign exchange market.

He famous that Nigeria’s overseas reserves now exceed $43 billion, offering over eleven months of import cowl.

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