cNGN is Nigeria’s first regulated stablecoin, launched in February 2025 and pegged 1:1 to the Nigerian Naira and fully backed by a reserve of safe assets like bank deposits, cash notes, government bonds, and treasury bills. The cNGN stands for "contractual Nigerian Naira", and it is used within blockchain and cryptocurrency ecosystems to represent the value of the Naira in a digital, and programmable form.
cNGN is built and developed by WrappedCBDC Ltd. in partnership with Convexity, Interstellar, and AlphaGeeks Tech, and operates under the supervision of the Nigerian Securities and Exchange Commission (SEC) through its Regulatory Incubation Program. This program is essentially a sandbox where innovative fintech or crypto products can be tested in a controlled environment, with oversight from regulators. It allows companies to try out new ideas without immediately facing the full weight of financial regulation, while still staying compliant.
Unlike the wild volatility of cryptocurrencies like Bitcoin, cNGN stability makes it a viable tool for everyday transactions, remittances, and even decentralised finance (DeFi). cNGN enables remittances, especially for Nigerians abroad sending money home, facilitates cross-border trade and e-commerce involving digital transactions, and facilitates fast, low-cost payments in Naira on blockchain platforms.
cNGN is already available on multiple blockchains, including Bantu (its home network), Binance Smart Chain, Base, Asset Chain, Polygon, and Ethereum. It's also listed on licensed crypto exchanges in Nigeria like Busha and Quidax. In essence, the stablecoin is a bridge between traditional finance and the blockchain frontier.
cNGN vs eNaira
| Feature | cNGN | eNaira |
|---|---|---|
| Type | Regulated stablecoin | Central Bank Digital Currency (CBDC) |
| Issuing Body | WrappedCBDC Ltd. (Private Sector) | Central Bank of Nigeria (CBN) |
| Regulatory Oversight | Securities and Exchange Commission (SEC) | Central Bank of Nigeria (CBN) |
| Launch Year | 2025 | 2021 |
| Blockchain Type | Public blockchains (Bantu, Base, BSC, Ethereum, etc.) | Private blockchain (controlled by CBN) |
| Peg | 1:1 with Naira (backed by reserves) | 1:1 with Naira (direct government issuance) |
| Purpose | Facilitate digital payments, DeFi, remittances | Monetary control, reduce cash usage, financial surveillance |
| Adoption Strategy | Market-driven, user-centric, private sector-led | Top-down, government-driven |
| Current Challenges | Awareness, infrastructure, merchant support | Public skepticism, limited adoption, control concerns |
| Programmability | Supports smart contracts and conditional payments | Limited programmability |
| Use Case Focus | Transactions, DeFi, remittances, gig economy | Government payments, policy enforcement |
Yes, cNGN sounds revolutionary but it's not the first digital token backed by the Nigerian Naira (NGN). eNaira is already in the game before cNGN. eNaira is a Central Bank Digital Currency (CBDC) launched in 2021 by the Central Bank of Nigeria (CBN).
The question you may want to ask now is that when there's already a digital currency pegged to Naira, why another digital NGN?
In an exclusive interview with Olayinka Omoniyi, Sales and Marketing Lead at Convexity, at TechNext24, the eNaira is a digital currency created by the government, mainly for things like controlling the money supply and tracking financial activity,” he said. “cNGN, on the other hand, is built by private companies. It's designed to make digital payments easier and more accessible, and it can quickly adapt to what users actually need.
The cNGN aligns with SEC's Regulatory Incubation Program. Just like I cited in this article, "This program is essentially a sandbox where innovative fintech or crypto products can be tested in a controlled environment, with oversight from regulators. It allows companies to try out new ideas without immediately facing the full weight of financial regulation, while still staying compliant." So, cNGN is the project that can be used to achieve it.
The eNaira aims to reduce cash use and curb illicit finance but has seen slow adoption due to public distrust and limited acceptance. In contrast, cNGN is backed by Naira reserves in commercial banks, and runs on public blockchains, offering greater transparency, flexibility, and user trust that the eNaira lacks.
“Think of cNGN as a market-driven solution,” Omoniyi added. “It is not about replacing the eNaira but complementing it. While the eNaira serves the CBN’s macroeconomic goals, cNGN empowers businesses, freelancers, and everyday users to transact faster, cheaper, and globally, without needing a dollar intermediary.”
