The difference between cNGN and eNaira: expert opinion on potential, adoption

What exactly is cNGN, and why does it matter? You may be wondering. At its core, 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.

Developed by WrappedCBDC Ltd. in partnership with Convexity, Interstellar, and AlphaGeeks Tech. cNGN operates under the supervision of the Nigerian Securities and Exchange Commission (SEC) through its Regulatory Incubation Program. 

Unlike the wild volatility of cryptocurrencies like Bitcoin, cNGN stability makes it a viable tool for everyday transactions, remittances, and even decentralised finance (DeFi). Available on multiple blockchains, including Bantu (its home network), Base, Binance Smart Chain, Asset Chain, Ethereum, and Polygon, and listed on licensed exchanges like Busha and Quidax, cNGN is a bridge between traditional finance and the blockchain frontier.

Yet, as revolutionary as it sounds, cNGN is not the first Naira-dominated digital currency.

Nigeria already has the eNaira, a Central Bank Digital Currency (CBDC) launched in 2021 by the Central Bank of Nigeria (CBN). So why another digital Naira? And how can cNGN accelerate its adoption across a country where financial inclusion remains a pressing issue?

At first glance, cNGN and eNaira might seem like twins; both are digital representations of the Naira, designed to modernise Nigeria’s financial landscape. But as Olayinka Omoniyi, Sales and Marketing Lead at Convexity, explains in this exclusive interview with Technext, their DNA could not be more different.

“The eNaira is a government-issued CBDC with broad policy objectives; think of monetary control and financial surveillance,” he said. “cNGN, on the other hand, is a private-sector initiative focused on enhancing digital payments and inclusion, with the flexibility to adapt to user needs.”

The eNaira, launched amid much fanfare, operates on a private blockchain controlled by the CBN. It is a top-down effort to digitise the Naira, reduce cash dependency, and combat illicit financial flows.

Yet, its adoption has been sluggish. Public scepticism, limited merchant acceptance, and a perception of government overreach have kept it from gaining traction. By contrast, cNGN is a decentralised stablecoin, minted by WrappedCBDC Ltd. and backed by Naira reserves held in commercial banks. It is regulated by the SEC, not the CBN, and operates on public blockchains, offering the transparency and interoperability 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.” 

This distinction is critical. The eNaira’s centralised nature ties it to government infrastructure, while cNGN’s multi-chain flexibility and private-sector backing make it a nimble player in the Web3 and fintech ecosystems.

The cNGN potential: Use cases that could change the game

So, what can cNGN do? For crypto enthusiasts, it is a game-changer in DeFi and decentralised trading.

“Nigerian users can now trade on decentralised exchanges, participate in lending protocols, or provide liquidity in pools using a stable, on-chain Naira equivalent,” Omoniyi noted. 

“Imagine a world where you do not need a dollar-backed passport to buy Bitcoin or pay for a service abroad,” he said. “That is what cNGN is here to do: bring the Naira into the digital age, seamlessly and securely.”

For traditional bank users and fintechs, the benefits are just as compelling.

cNGN offers a seamless on/off-ramp for converting digital assets to Naira without touching foreign currencies. Businesses can settle payments instantly, freelancers can receive global payments in a local denomination, and remittance senders can bypass exorbitant bank fees. 

“We are talking fees as low as ₦150–₦500 compared to the thousands you would pay for a USDT transfer on Ethereum,” Omoniyi said. “That’s real money staying in people’s pockets.”

Beyond efficiency, cNGN has broader economic implications.

By reducing reliance on USD stablecoins, it could ease forex pressure on Nigeria’s strained reserves, a persistent headache in a country where the Naira has depreciated significantly from ₦460 to ₦1,500 against the dollar since 2022. 

“Every time a trader uses cNGN instead of USDT, it is a vote of confidence in the Naira’s digital utility,” Omoniyi argued. “It keeps liquidity circulating locally, which is huge for economic resilience.”

Then, there is the programmability factor.

With smart contracts, cNGN can power escrow services, conditional payments, and even real-time streaming payments for gig workers. Imagine a freelancer getting paid per minute for a live coding session or a buyer releasing funds only when a product is delivered. 

“The potential is endless,” Omoniyi enthused. “From trade escrow to social banking like Esusu, CNGN can automate trust in ways traditional systems can not.”

Why is everyone not using the cNGN yet?

Despite its promise, cNGN’s adoption is not there yet.

Admittedly, it only launched in February 2025, so perhaps it is still too early to conclusively assess its level of adoption. With only 121.3 million tokens in circulation, held by just 127 wallet addresses. Compare that to the billions of USDT traded daily, and it’s clear cNGN has a long road ahead.

So, what’s holding it back, and how can Nigeria accelerate its uptake?

For one, awareness is a hurdle.

“Most Nigerians do not even know cNGN exists,” Omoniyi admitted. “They’re familiar with the Naira, sure, but a blockchain-based Naira? That’s new territory.” Unlike Bitcoin, which thrives on hype, cNGN’s stability does not generate buzz; it is a practical tool that needs education to shine. The eNaira’s lukewarm reception has not helped, leaving some wary of digital currencies altogether.

Then there is the Naira’s volatility. Pegged 1:1, cNGN inherits the Naira’s inflation woes, which could deter savers. 

“It is stable relative to crypto, but it’s still tied to a currency losing value,” Omoniyi acknowledged. “That is why we pitch it for transactions, not long-term holding; use it, spend it, move it.”

Infrastructure is another bottleneck. While cNGN is available on Busha and Quidax, broader merchant acceptance and wallet support are still lacking. Without a robust ecosystem, it’s a solution in search of users.

“We need fintechs, banks, and Web3 startups to build on it,” Omoniyi stressed. “Adoption by businesses is the key; once they integrate cNGN, consumers will follow.”

Accelerating adoption: A blueprint for success

To make cNGN a household name, Nigeria needs a multi-pronged strategy. First, education is non-negotiable.

“We are working with developers and the fintech sector to show what is possible,” Omoniyi said. Workshops, hackathons, and campaigns targeting the banked and underbanked can demystify cNGN, emphasising its ease of use, with no prior crypto knowledge required. Highlighting its familiar 1:1 peg to the Naira and its integration with trusted banks can build confidence.

Second, partnerships are critical. “Imagine if mobile money platforms like OPay or PalmPay let you top up with cNGN,” Omoniyi mused. “Or if charities accepted it for donations, with every transaction transparent on-chain.”

By embedding cNGN into existing services, think digital vouchers, microtransactions, or palliative distribution, its utility becomes tangible. For freelancers and exporters, solutions that let them pay foreign bills in cNGN (via conversion partners) could eliminate current limits and delays.

Third, cost and speed are cNGN’s trump cards. “No more waiting days for reversals or losing money to chargeback scams,” Omoniyi pointed out. “Businesses can settle instantly, and freelancers can get paid globally in Naira.” Marketing this to traders, SMEs, and the diaspora, where remittances and profitability are a lifeline, could spark organic growth.

Finally, regulatory clarity must be deepened.

The SEC’s incubation programme is a start, but scaling cNGN requires more exchanges, wallets, and use cases. “We are proving it works,” Omoniyi said. “Now we need the ecosystem to catch up: Web3 startups, banks, everyone.” Incentives for developers to build cNGN-powered apps, like trade escrow, transparent crowdfunding or instant refunds, could ignite innovation.

As our conversation wrapped up, Omoniyi’s optimism was infectious. “cNGN is not just a stablecoin; it is a movement,” he declared. “It is about giving Nigerians direct access to the digital economy; no dollar middleman required.”

From DeFi traders to market vendors, cNGN offers a vision of a faster, cheaper, and more inclusive financial future.

Will it succeed? The jury’s still out. The Naira’s volatility, limited awareness, and ecosystem gaps are real challenges. Yet, with its regulatory backing, multi-chain flexibility, and private-sector agility, cNGN has a fighting chance to fulfill its vision of boosting the distribution and usage of the Naira in the digital economy.

If businesses embrace it, if fintechs build on it, and if Nigerians see its value, cNGN could do more than accelerate adoption; it could redefine money in Africa’s largest economy.

For now, it is a spark in Nigeria’s digital tinderbox. Whether it ignites a revolution depends on how brightly it burns and how many hands reach out to fan the flames.