Serrari Group

In a strategic move to bolster the country’s digital currency landscape, several Nigerian commercial banks have expressed their intent to develop a stablecoin named cNGN, aiming to complement the eNaira, Nigeria’s central bank digital currency (CBDC).

Scheduled for launch in January 2024, cNGN is set to maintain a 1:1 peg to the naira, offering stability in value. The stablecoin will be constructed on a publicly distributed ledger, facilitating interoperability with diverse payment systems.

Stablecoins, known for their value pegged to fiat currencies, provide investors with a hedge against the volatility commonly associated with digital currencies.

Key participants in the collaborative project include prominent banks such as Access Bank, Sterling Bank, Providus Bank, and First Bank. Technical support for the initiative is expected from ecosystem players like Interstellar, Convexity, Kora, Interswitch, and BudPay, making it one of Nigeria’s most extensive collaborative projects in the payment sector.

While specific technical details are yet to be revealed, industry observers anticipate various use cases for the consortium-backed stablecoin, including its potential deployment for interbank settlements. Although its interoperability features suggest suitability for cross-border payments, its application for domestic retail transactions remains uncertain.

The introduction of cNGN for mainstream retail use creates a direct competition with the eNaira, raising concerns about the future of Nigeria’s CBDC project. Consortium participants, however, emphasize that cNGN will operate as a complement to the eNaira, not as a substitute.

Since its 2021 launch, the eNaira has faced slow adoption rates, with former central bank officials attributing the challenges to commercial banks. Analysts argue that, despite its limited functionalities, cNGN might pose a significant challenge to the eNaira’s viability, given commercial banks’ track record in introducing new offerings.

Central Bank Approval Marks Milestone

The revelation of the stablecoin project gained traction following the Central Bank of Nigeria’s (CBN) approval for banks and financial institutions to offer services to virtual asset service providers (VASPs).

Under the CBN’s guidelines, banks can now provide VASPs with bank accounts and designated settlement accounts, as well as offer foreign exchange conduit services to digital asset firms.

However, VASPs must meet specific minimum standards to access banking services from Nigerian lenders, including obtaining a license from the country’s Securities and Exchange Commission (SEC) and registering with the Corporate Affairs Commission (CAC).

By: Delino Gayweh
Serrari Financial Analyst
December 8, 2023

Share this article:
Article and News Disclaimer

The information provided on is for general informational purposes only. While we strive to keep the information up to date and accurate, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk. is not responsible for any errors or omissions, or for the results obtained from the use of this information. All information on the website is provided on an "as-is" basis, with no guarantee of completeness, accuracy, timeliness, or of the results obtained from the use of this information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.

In no event will be liable to you or anyone else for any decision made or action taken in reliance on the information provided on the website or for any consequential, special, or similar damages, even if advised of the possibility of such damages.

The articles, news, and information presented on reflect the opinions of the respective authors and contributors and do not necessarily represent the views of the website or its management. Any views or opinions expressed are solely those of the individual authors and do not represent the website's views or opinions as a whole.

The content on may include links to external websites, which are provided for convenience and informational purposes only. We have no control over the nature, content, and availability of those sites. The inclusion of any links does not necessarily imply a recommendation or endorsement of the views expressed within them.

Every effort is made to keep the website up and running smoothly. However, takes no responsibility for, and will not be liable for, the website being temporarily unavailable due to technical issues beyond our control.

Please note that laws, regulations, and information can change rapidly, and we advise you to conduct further research and seek professional advice when necessary.

By using, you agree to this disclaimer and its terms. If you do not agree with this disclaimer, please do not use the website., reserves the right to update, modify, or remove any part of this disclaimer without prior notice. It is your responsibility to review this disclaimer periodically for changes.

Serrari Group 2023