Is the eNaira in Jeopardy? CBN Launches Task Force for New Stablecoin

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

The Central Bank of Nigeria (CBN) has initiated a new task force aimed at exploring the adoption of stablecoins, prompting concerns over the future viability of the nation’s digital currency, eNaira.

Recently, CBN Governor Olayemi Cardoso revealed the establishment of this working group during a press conference following the annual World Bank and International Monetary Fund (IMF) meetings in Washington, D.C. The CBN is collaborating with the Ministry of Finance and other financial regulators to examine the potential framework for an official Nigerian stablecoin amid the sluggish uptake and skepticism surrounding the eNaira.

Key Takeaways

New Task Force Formation: CBN has created a task force to investigate stablecoin adoption, which raises questions about the eNaira's future.
Poor Adoption Rates: Only 0.5% of Nigerians had embraced the eNaira a year post-launch, with 98.5% of wallets remaining dormant.
Stablecoin Discussions: CBN is focusing on balancing innovation with financial stability during ongoing discussions about stablecoins.
Regulatory Developments: Prospects for the cNGN stablecoin have emerged, aiming to supplement rather than replace the eNaira.
Nigeria's Crypto Landscape: Nigeria ranks high globally for crypto adoption, particularly in stablecoin transactions.

Challenges Facing eNaira Amid Inactive User Base

The CBN, through recent IMF data, indicated that merely 0.5% of Nigerians adopted the eNaira a year after its introduction, with a staggering 98.5% of wallets remaining inactive. Although eNaira wallet creation peaked at around 13 million by early 2024, the majority were never utilized. Since its launch, transaction activity reached approximately ₦29.3 billion, with over 850,000 transactions logged, significantly lower than projected for a nation boasting a population exceeding 200 million.

Source: The Cable

The eNaira mobile app, previously accessible through Google Play and Apple’s App Store, has been removed from the Google platform, and the USSD code (*997#) is inoperative. The last communication from their official social media platforms occurred in August 2023, and reports have surfaced concerning user login issues and difficulties with one-time passwords. In August, the CBN acknowledged that the eNaira had not achieved widespread acceptance due to low public awareness and inadequate user education. Collaborations with blockchain company Gluwa began in March 2024 to enhance the technical infrastructure, alongside a September announcement aimed at expanding eNaira applications for governmental transactions. Yet, these initiatives have not revived user engagement, and public perception of the digital currency has been overwhelmingly negative. Many Nigerians have resorted to calling it “E-vanish” and “E-dead,” voicing frustration over usability issues and the lack of advantages compared to cash or private cryptocurrencies.

CBN Governor Advocates for Stablecoins as a Solution

Governor Olayemi Cardoso highlighted that discussions regarding stablecoins were a major topic at the global financial meetings. He emphasized the necessity of supporting innovation while managing the associated risks. “No one wants to stifle innovation,” he stated, “but it’s equally important to weigh innovation against financial stability.”

This announcement comes amid several regulatory changes within Nigeria's digital finance sector. In 2024, the Africa Stablecoin Consortium (ASC) received CBN’s green light to launch the cNGN stablecoin in its regulatory sandbox.

Central Bank of Nigeria Approves Africa Stablecoin Consortium

The ASC asserts that the cNGN adheres to standards set by the CBN, the Securities and Exchange Commission (SEC), and the Nigerian Financial Intelligence Unit. Designed as a complementary solution rather than a replacement for eNaira, the cNGN will be compatible with major blockchains like BNB Smart Chain and Bantu, with plans for further network expansions. Cardoso reiterated that the stablecoin initiative aligns with the CBN's commitment to fostering innovation while maintaining monetary stability. He also mentioned ongoing strategic discussions with fintech leaders under the theme "Shaping the Future of FinTech in Nigeria: Innovation, Inclusion, and Integrity."

However, this new focus on stablecoins arises at a time when the eNaira is showing dwindling engagement, nearly four years after its October 2021 rollout, highlighting decreasing user activity and public interest. Meanwhile, stablecoins have grown increasingly prevalent within Nigeria's cryptocurrency sector.

Growing Interest in Stablecoins and Cryptocurrency in Nigeria

Between July 2023 and June 2024, stablecoin transactions in Nigeria amassed nearly $22 billion, leading all sub-Saharan African nations, as reported by data from Yellow Card. Stablecoins accounted for 43% of total crypto transactions in the region, with USDT commanding over 88% of the market share. This rising interest mirrors a broader increase in cryptocurrency activities throughout Nigeria.

According to Chainalysis data, Nigeria processed approximately $59 billion in crypto transactions from 2024 to 2025, placing it second globally behind India and ranking sixth in the Global Crypto Adoption Index for 2025. Stablecoins are mainly utilized for remittances and as a safeguard against the naira’s volatility, becoming dominant in retail trades.

In alignment with these developments, the IMF has portrayed a renewed optimism regarding Nigeria’s economic prospects, lifting its growth forecast to 3.9% for 2025 and 4.2% for 2026. This revision is attributed to heightened oil production, increased investor confidence, and improved fiscal circumstances. Pierre-Olivier Gourinchas, the IMF's Economic Counsellor, acknowledged that reforms such as the removal of fuel subsidies and the unification of foreign exchange rates have helped stabilize inflation and strengthen the naira. During the briefing, Cardoso echoed these remarks, noting that inflation is beginning to stabilize due to "disciplined monetary tightening" and enhanced transparency in the foreign exchange market, reflecting in foreign reserves exceeding $43 billion, which offers over eleven months of import cover.