Nigeria is fast emerging as one of Africa’s digital currency powerhouses.
With over 22 million crypto users and a thriving remittance-driven economy, both the Central Bank of Nigeria (CBN) and the private sector are pushing to digitize the naira.
Two major projects now lead this movement:
- eNaira: the CBN’s official Central Bank Digital Currency (CBDC), launched in 2021.
- cNGN: a privately issued, naira-backed stablecoin, introduced in March, 2025 and regulated by the Securities and Exchange Commission (SEC).
At first glance, both sound similar. Each is pegged 1:1 to the naira and aims to enable faster, safer digital payments. But beyond that, they differ in technology, governance, and purpose.
This guide breaks down what each one offers, how they work, their strengths, and their challenges, so you can decide which suits your needs.
What Is the eNaira?
The eNaira is Nigeria’s official Central Bank Digital Currency (CBDC), a digital version of the naira, issued and fully backed by the CBN.
It serves as:
- A unit of account
- A store of value
- A medium of exchange
Launched on October 25, 2021, the eNaira was Africa’s first CBDC. It works just like cash, but in digital form, stored securely in an eNaira wallet.
Why the eNaira Was Created
The eNaira was developed as part of a global shift toward Central Bank Digital Currencies.
By 2021, more than 90% of central banks worldwide were exploring CBDCs, according to the Bank of International Settlements (BIS).
For Nigeria, the eNaira was designed to:
- Promote financial inclusion
- Improve payment efficiency
- Strengthen tax and revenue collection
- Enable direct government payments to citizens
How the eNaira Works
The eNaira runs on a permissioned blockchain (Hyperledger Fabric), a private network controlled by the CBN.
This setup gives the central bank full oversight of onboarding, KYC verification, and transaction monitoring.
Licensed financial institutions act as intermediaries, helping users create eNaira wallets, verify IDs, and process payments.
An eNaira wallet functions much like a bank account, but it’s independent of your regular bank account.
You can send, receive, and store eNaira directly with other wallet users.
Key Features
- Fast & Secure: Instant transactions with minimal risk of failure or errors.
- Peer-to-Peer Transfers: Send money directly to anyone with an eNaira wallet.
- Contactless Payments: Scan QR codes to pay in stores.
- Bank Integration: Easily move funds between your bank account and wallet.
- Withdraw Anytime: Transfer eNaira to a bank account or withdraw as cash at ATMs.
Wallet Options
The eNaira offers multiple wallet tiers (Tier 1, 2, and 3), each with its own KYC requirements and transaction limits.
Users can:
- View balances and transaction history
- Link bank accounts for seamless transfers
- Manage merchant wallets for business use
eNaira wallet Tiers
| Tiers | Requirements | Daily Credit Limit | Daily Withdrawal Limits |
| Tier 0 | Phone number only | #20,000 | #500 |
| Tier 1 | NIN | #50,000 | #50,000 |
| Tier 2 | BVN | #200,000 | #200,000 |
| Tier 3 | BVN & Utility Bill | #1,000,000 | #1,000,000 |
Security & Technology
- Strong Encryption: Uses cryptography and two-factor authentication to protect user data.
- Programmable Features: Enables restricted-use payments, such as government aid.
- Distributed Ledger: Managed by the CBN, with banks acting as validating nodes.
- User Verification: 4-digit PIN, email, and biometric options for secure access.
Limitations
Despite its promise, the eNaira faces adoption challenges.
Many users still prefer established payment platforms due to:
- Limited usability and poor user experience
- Full CBN visibility over transactions (raising privacy concerns)
- Lack of offline functionality
- Digital divide issues from poor internet or electricity access
How to Open an eNaira Wallet
- Download the App: available on Google Play or the Apple App Store.
- Select Your Bank: choose your preferred institution.
- Validate Your Details: input your NIN, BVN, date of birth, and email.
- Start Transacting! you’re ready to send, receive, or store eNaira.
For non-smartphone users, dial USSD code _997_50#.
Advantages of Using eNaira
- Free & Instant Transfers
- Inclusion for Unbanked Nigerians
- Government-Backed Stability
Disadvantages of Using eNaira
- Limited Privacy (full KYC required)
- Restricted Use (within Nigeria’s financial system only)
- Low Adoption (trust and usability concerns)
What Is the cNGN?
The cNGN is Nigeria’s first regulated stablecoin, designed to maintain a 1:1 peg with the naira.
Launched in March, 2025 by WrappedCBDC Ltd., the project is backed by a consortium of private fintech firms, including Convexity Technologies, Interstellar, and AlphaGeeks Tech, and operates under the supervision of the Securities and Exchange Commission (SEC).
Unlike the eNaira, which is issued by the Central Bank of Nigeria (CBN), the cNGN is a privately issued digital currency built on public blockchains.
Core Features
- Issuer: Private consortium regulated by the SEC
- Technology: Multi-chain architecture that runs on public blockchains
- Backing: Fully backed by naira reserves held in licensed Nigerian banks
- Regulation: Approved under the SEC’s Accelerated Regulatory Incubation Program (ARIP)
Key Features at a Glance
- Stable Value: Pegged 1:1 to the naira and fully backed by reserves, ensuring stability.
- Speed & Cost-Effectiveness: Enables near-instant payments at a fraction of traditional banking fees.
- Global Access: Makes it easier for Nigerians to participate in international trade, remittances, and cross-border payments.
- Transparency & Security: Transactions are recorded on the blockchain, providing real-time tracking and enhanced security.
- Regulatory Compliance: Meets SEC standards and includes KYC and AML safeguards.
- Interoperability: Works across multiple public blockchains, making it developer- and user-friendly.
- Private Sector Management: Managed by private fintechs and banks, offering flexibility beyond state control.
Why cNGN Matters
The cNGN closes the gap between Nigeria’s naira with the global crypto and DeFi ecosystem, allowing Nigerians to send, receive, and invest seamlessly across borders.
It’s a key step in connecting traditional finance (TradFi) with decentralized finance (DeFi), empowering businesses, freelancers, and everyday users to transact faster and cheaper.
Benefits of cNGN
- Faster, cheaper international payments
- Improved financial inclusion for tech-savvy and underserved users
- Links Nigeria’s naira to the global digital economy
- Promotes Web3 and blockchain adoption across Africa
- Reduces settlement times and transaction costs
- Enables cheaper business transactions and remittances
Challenges
While promising, cNGN still faces several hurdles:
Public & Market Challenges
- Low Awareness: Many Nigerians are still unfamiliar with cNGN, especially following the eNaira’s limited adoption.
- Naira Volatility: Since it’s pegged to the naira, cNGN’s real-world value can fall when the naira weakens.
- Merchant Integration: Adoption depends on whether wallets, fintechs, and merchants incorporate cNGN into their systems.
Monetary & Regulatory Challenges
- Monetary Sovereignty: Hosting cNGN on external or decentralized infrastructure could weaken the CBN’s control over monetary policy.
- Banking Stability: Large Naira flight is reduced and liquidity to banks in Nigeria is maintained. .
- Regulatory Compliance: Ongoing adherence to SEC, AML, and CTF rules will be key as the framework evolves.
- Proof of Reserves: Continuous, verifiable audits are needed to sustain public trust.
Project & Security Challenges
- Systemic Risk: Using cNGN for investments rather than payments could expose users to contagion if platforms fail.
- Cybersecurity: Protecting user funds and maintaining data integrity remain top priorities.
How cNGN Works
- Backing & Pegging: Each cNGN token is backed 1:1 by a naira held in a licensed commercial bank.
- Minting: When verified merchants deposit naira, an equivalent amount of cNGN is created and issued.
- Blockchain Network: Operates on decentralized, multi-chain infrastructure for faster, cheaper, and transparent transactions.
- Usage: cNGN can be used for the following: Domestic and cross-border payments, Remittances and savings, Trading on supported exchanges and DeFi lending or yield products.
- Regulation: While privately managed, cNGN must comply with Nigeria’s financial regulations, including KYC and AML requirements.
How to Get cNGN
Through a Centralized Exchange
- Sign up & verify your account on exchanges like Roqqu, Busha, UseAzza, or Quidax.
- Deposit Naira (NGN) using bank transfer or card payment.
- Buy cNGN: search for cNGN, enter the amount, and confirm your purchase.
Using a Web3 Wallet
- Create a Web3 wallet (e.g., Binance Web3 Wallet, Phantom, Trust wallet or MetaMask).
- Fund with a stablecoin (e.g., USDT or USDC).
- Swap for cNGN via a decentralized exchange (DEX) like Aerodrome, Pancakeswap, Uniswap.
Comparing eNaira and cNGN
Nigeria’s two digital currencies, the eNaira and the cNGN, represent different approaches to modernizing payments and driving financial inclusion.
While both are pegged 1:1 to the naira, their objectives, governance, and design differ in significant ways.
The table below highlights the key distinctions between the privately issued cNGN stablecoin and the centrally issued eNaira CBDC.
Comparison Between cNGN and eNaira
| Criteria | eNaira | cNGN |
| Core Objective | Created to support public policy goals such as government-to-person (G2P) payments, financial inclusion, and digital public infrastructure. | Designed to simplify payments and enable faster, cheaper international transfers. |
| Digital Form | A Central Bank Digital Currency (CBDC), not a cryptocurrency. | A privately issued stablecoin similar to USDT. |
| Reserve Holdings | Backed by naira reserves held directly with the Central Bank of Nigeria. | Backed by naira reserves held in commercial banks participating in the cNGN network. |
| Promotion | Promoted by the Central Bank of Nigeria to support retail and wholesale use cases. | Promoted and distributed by member banks and fintech partners. |
| Corporate Support | Supported mainly by regulated financial institutions for its monetary policy benefits. | Expected to gain strong support from private organizations due to flexibility and ease of integration. |
| Primary Use | Primarily a wholesale payment tool, with future potential for retail expansion. | Focused on retail transactions, everyday payments, remittances, and DeFi activities. |
| Blockchain Type | Runs on a private, permissioned blockchain built on Hyperledger Fabric. | Operates on public blockchains with multi-chain compatibility. |
| Expertise Behind Development | Developed by the CBN using internal expertise and international technical consultants. | Developed by a consortium of private banks, fintechs, and blockchain experts. |
| Public Policy Role | Can be used to implement public policy goals such as subsidies, social benefits, and tax efficiency. | Not designed to serve public policy objectives directly. |
| Financial Inclusion | Can help bring unbanked individuals into the financial system through direct wallet access. | Serves already banked users and can onboard unbanked individuals. |
| Government Control | Fully controlled and supervised by the Central Bank of Nigeria. | Minimal government involvement or oversight in daily operations. |
| Custody of Reserves | Pegged to naira reserves maintained by the central bank. | Pegged to naira reserves held in commercial banks. |
| Monetary Policy Impact | Strong policy utility, supports money supply control and financial oversight. | Limited impact on monetary policy; mainly a transactional tool. |
| User Surveillance | Allows complete monitoring and traceability by the central bank. | Transactions are transparent on-chain. |
| Financial Stability Risks | Risks are managed through central oversight, caps, and reserve controls. | Vulnerable to de-pegging risks and liquidity fluctuations. |
FAQs About eNaira and cNGN
What is the USSD code for eNaira?
Dial _997_50# to access your eNaira wallet on a feature phone.
How much is eNaira to Naira?
1 eNaira equals ₦1. The eNaira is pegged directly to the physical naira.
Is eNaira a cryptocurrency?
No. The eNaira is a Central Bank Digital Currency, not a cryptocurrency. It runs on a private blockchain and is fully controlled by the CBN.
Can users hold both cNGN and eNaira in one wallet?
Not at the moment. The cNGN operates on public blockchains, while eNaira uses a private CBN-controlled blockchain, so wallet integration depends on future interoperability developments.
Can foreigners or non-residents use them?
cNGN: Yes, global users can hold and transact with cNGN through crypto exchanges and Web3 wallets.
eNaira: Access is limited to Nigerian residents and verified local businesses.
Will cNGN and eNaira be interchangeable?
Not yet, but future interoperability is expected.
Can the government freeze or monitor my transactions?
For eNaira, yes, since it’s under full CBN control. And for cNGN: No direct freezing capability, though activities must comply with AML/KYC regulations and laws.
Can I use cNGN and eNaira for everyday transactions?
Yes. Both can be used for payments, remittances, and transfers, though cNGN is more integrated with fintech apps, and eNaira is mainly supported within the CBN’s ecosystem.
Conclusion
While they are both digital currencies, the eNaira represents Nigeria’s push toward state-backed digital innovation, while the cNGN reflects the private sector’s agility and global focus.
Together, they signal a new era where digital naira ecosystems could reshape how Nigerians save, spend, and connect to the world economy