Nigeria Explores Stablecoin Amidst eNaira Challenges
Timothy Morano Oct 22, 2025 20:12
Nigeria's central bank forms a task force to explore stablecoin adoption, questioning the future of eNaira as stablecoins gain traction in the country.
Nigeria's central bank, the Central Bank of Nigeria (CBN), has announced the formation of a new task force dedicated to exploring the adoption of an official stablecoin. This development raises significant questions about the future of the country's digital currency, the eNaira, according to Cryptonews.
eNaira's Struggles and Public Disinterest
Since its launch in October 2021, the eNaira has faced numerous challenges, including sluggish adoption rates and widespread public skepticism. Data from the International Monetary Fund (IMF) in 2023 revealed that only 0.5% of Nigerians had adopted the eNaira, with a staggering 98.5% of wallets remaining inactive. Despite efforts to increase awareness and user education, the eNaira has struggled to gain traction, leading to its limited use in Nigeria's financial ecosystem.
The eNaira's technical infrastructure has also faced setbacks, with the mobile app being removed from Google Play and the USSD code (*997#) becoming non-functional. Attempts to revive the project, such as partnerships with blockchain firms and expanding eNaira's use for government payments, have yet to yield significant results.
Stablecoin Initiative and Regulatory Developments
CBN Governor Olayemi Cardoso announced the formation of the stablecoin task force during the annual World Bank and International Monetary Fund (IMF) meetings in Washington, D.C. The task force, in collaboration with the Ministry of Finance and other financial regulators, aims to assess the implications and framework for introducing a Nigerian stablecoin.
Cardoso emphasized the importance of balancing innovation with financial stability, highlighting that stablecoins featured prominently in global financial discussions. The stablecoin initiative aligns with the CBN's broader regulatory shifts in Nigeria's digital finance sector.
In 2024, the Africa Stablecoin Consortium (ASC) received approval from the CBN to launch the cNGN stablecoin within the regulatory sandbox. The cNGN is designed to complement the eNaira and is interoperable with major blockchains, aiming to enhance Nigeria's digital currency landscape.
Stablecoin Adoption in Nigeria
Stablecoins have rapidly gained popularity in Nigeria, with transactions reaching nearly $22 billion between July 2023 and June 2024, the highest in sub-Saharan Africa. This trend reflects the growing appeal of stablecoins as Nigerians increasingly use them for remittances and as a hedge against naira volatility.
Chainalysis reports that Nigeria ranks 6th globally in the Crypto Adoption Index 2025, with stablecoins accounting for 43% of total crypto transactions in the region. As stablecoins become deeply embedded in Nigeria's crypto economy, the CBN's exploration of an official stablecoin marks a significant step in adapting to the evolving digital financial landscape.
Despite the challenges faced by the eNaira, Nigeria's broader economic outlook remains positive. The IMF has upgraded Nigeria's growth forecast to 3.9% for 2025 and 4.2% for 2026, citing rising oil output and improved fiscal conditions. As the CBN moves ahead with its stablecoin exploration, it remains to be seen how this will shape the future of digital currency in Nigeria.
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