Is Nigeria’s Enaira Dead? Cbn Forms New Task Force For Official Stablecoin

What Happened

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

Cardoso said the Central Bank, in collaboration with the Ministry of Finance and other financial regulators, has created dedicated teams to assess the broader implications and potential framework for introducing an official Nigerian stablecoin.

Total transaction volume since the launch was around ₦29.3 billion, with just over 850,000 transactions recorded, far below expectations for a country of over 200 million people.

Efforts to revive the project included a partnership with blockchain firm Gluwa in March 2024 to upgrade technical infrastructure and an announcement in September to expand eNaira use for government payments.

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

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

Market Context

Nigeria’s central bank has formed a new task force to explore the adoption of stablecoins, raising questions over the future of the country’s digital currency, the eNaira.

The move comes amid sluggish adoption of the eNaira and growing public skepticism toward its performance.

Why It Matters

According to Cardoso, discussions around stablecoins featured prominently during the global financial meetings. “The message from there is that we must support innovation while managing the risks that come with it,” he said.

Details

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

According to IMF data published in 2023, only 0.5% of Nigerians had adopted the eNaira a year after its rollout, with 98.5% of wallets remaining inactive.

The number of eNaira wallets reportedly reached 13 million by early 2024, but most of them have not been used.

The mobile app, once available on both Google Play and Apple stores, has been removed from Google’s platform, and the USSD code (*997#) no longer functions.

The last post from the eNaira’s official social media accounts was in August 2023, while users attempting to access the platform have reported persistent login and one-time password issues.

In August, the CBN admitted that the eNaira had failed to gain widespread acceptance, citing low awareness and weak user education.

Despite these efforts, the platform remains largely inactive. Public sentiment toward the digital currency 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 benefits compared to cash or private crypto assets.

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

“No one wants to stifle innovation, but it’s equally important to balance that innovation with financial stability.”

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

It was designed to complement, not replace, the eNaira, the cNGN is interoperable with major blockchains, including BNB Smart Chain and Bantu, with plans to expand to other networks.

Cardoso said the move toward stablecoin exploration was consistent with the CBN’s drive to support innovation while preserving monetary stability.

He also revealed that the bank has been holding strategy sessions with fintech leaders under the theme “Shaping the Future of FinTech in Nigeria: Innovation, Inclusion, and Integrity.”

However, the new stablecoin initiative comes at a time when the eNaira project appears to have lost momentum.