Busha, a Nigerian cryptocurrency exchange that secured a provisional license from the Securities and Exchange Commission (SEC) in August 2024, has listed cNGN (Compliant Nigerian Naira)—the country’s first private consortium-backed stablecoin pegged 1:1 to the Naira. This milestone marks a new chapter in Nigeria’s evolving cryptocurrency market as the country seeks to embrace regulated digital assets.
The cNGN listing, announced on February 3, allows users to buy and sell the stablecoin on Busha’s platform. However, users cannot transfer cNGN to external wallets or decentralized exchanges yet, limiting its current use cases. Busha controls its own cNGN liquidity, ensuring smooth transactions, but widespread adoption is expected to grow as the stablecoin’s rollout progresses.
“We are excited to announce that cNGN is now available on Busha. This private-sector stablecoin is poised to transform Nigeria’s digital economy,” Busha posted on social media platform X.
Private-Sector-Led Initiative Backed by SEC
Unlike the eNaira, Nigeria’s central bank digital currency (CBDC), the cNGN is a private-sector initiative approved by the SEC under its Regulatory Incubation Programme (RI) in August 2024. The stablecoin’s development is spearheaded by Wrapped CBDC Ltd and Convexity, along with several fintech and blockchain advocacy groups under the African Stablecoin Consortium (ASC).
The goal of cNGN is to offer Nigerians an alternative to USD-pegged stablecoins like Tether (USDT) and USD Coin (USDC), which are widely used for remittances and crypto trading. By creating a Naira-backed digital asset, cNGN aims to boost the demand for the local currency and improve its standing in the forex market.
Built for Interoperability
The stablecoin is built on the Bantu blockchain, a layer-1 network, but it is designed to operate across multiple blockchain protocols, including Binance Smart Chain, Base, Ethereum, Polygon, and Assetchain, according to Adedeji Owonibi, founder of Convexity. Currently, cNGN is fully integrated only on Binance Smart Chain (BEP-20) and Base, enabling users to transfer the stablecoin between wallets on the Base network.
Despite its interoperability potential, the stablecoin is currently exclusive to Busha and not yet trading on-chain, which limits access and adoption.
Delays and Challenges
The cNGN project has faced several challenges, including regulatory delays, postponed launches, and alignment with SEC guidelines. In January 2025, the ASC announced another delay, citing ongoing engagement with regulators. Surprisingly, the stablecoin launched weeks later, but only Busha listed cNGN.
While Quidax, another SEC-licensed crypto startup, has not listed cNGN, Busha claims its listing was driven by the stablecoin’s compliance with SEC regulations.
“The SEC made it clear that digital asset issuers and exchanges must operate within a structured regulatory framework, which cNGN adheres to,” said Ngozi Okonye, Busha’s Marketing Manager.
Busha conducted due diligence before listing cNGN, ensuring the project met its liquidity, compliance, and documentation standards.
Use Cases and Future Potential
The cNGN offers significant benefits, particularly for remittances and low-cost transactions. On congested Ethereum networks, sending $100 in USDT can cost at least $1 in fees, while sending the equivalent amount in cNGN costs around ₦150–₦500 (less than $1), making it an attractive alternative.
However, adoption may be limited by low trust in the Naira, currency instability, and inflation. “It could have been better timing if the cNGN launched years ago,” said a Web3 policy consultant.
Once the stablecoin begins on-chain trading, adoption could increase dramatically, especially if major exchanges like Binance list the token. This would allow Nigerians to trade cNGN on peer-to-peer (P2P) platforms, opening up more use cases for remittances and crypto trading.
Conclusion: The Future of cNGN
The cNGN project represents a bold step toward creating a regulated digital asset for Nigeria’s growing crypto market. While challenges remain—particularly around trust and liquidity—the stablecoin’s compliance-first approach could pave the way for broader adoption and regulatory acceptance. As more crypto platforms integrate cNGN and on-chain trading expands, the stablecoin could become a vital tool for cross-border payments, remittances, and local financial transactions.
For now, Busha’s role as the exclusive cNGN provider signals the beginning of a new chapter in Nigeria’s evolving crypto landscape—one where local currency-backed digital assets could redefine how Nigerians interact with digital finance.