Nigeria’s long and uneasy relationship with cryptocurrency is entering a new phase. Two days ago, the Central Bank of Nigeria (CBN) announced a task force to explore the launch of an official national stablecoin, signalling what could be the biggest shift in the country’s digital money policy since the failed eNaira experiment.
The move suggests that the government may finally be ready to embrace crypto technology — but this time on its own terms.
A Look Back: How It All Started
The story began in 2017, when the CBN first warned the public about the risks of using Bitcoin and other cryptocurrencies. Back then, officials said crypto wasn’t legal tender and warned banks not to process related transactions.
That caution turned into a full-scale restriction in February 2021, when the CBN ordered banks to close accounts linked to crypto trading. The ban shocked Nigeria’s fast-growing crypto community and pushed trading underground. Still, Nigerians found their way around it. Peer-to-peer (P2P) platforms exploded in use, letting people send and receive money directly without banks.
In October that same year, the CBN launched the eNaira, Africa’s first central bank digital currency (CBDC). But adoption was poor. Few people saw a reason to use it, and merchants rarely accepted it. The app struggled with bugs, slow updates, and a lack of incentives.
2022–2023: Crypto Thrives Despite the Rules
Even with the banking ban, Nigeria’s crypto scene kept booming. By 2022, it had become one of the top global markets for Bitcoin and stablecoins. Inflation and currency instability pushed people toward digital assets, especially the U.S. dollar–linked stablecoin USDT.
By mid-2023, reports showed Nigerians processed over $59 billion in crypto transactions within a year — the second-highest total in the world, just behind India. That level of activity made it clear: banning crypto hadn’t worked.
2024: A Turn Toward Regulation
In early 2024, the CBN quietly lifted its restriction on banks. For the first time in three years, financial institutions could open accounts for licensed crypto companies, as long as they followed know-your-customer (KYC) and anti-money-laundering (AML) rules.
At the same time, the Securities and Exchange Commission (SEC) began taking a more active role. Under the new Investments and Securities Act 2025, digital assets are now legally recognised as securities, putting them under SEC oversight.
This shift meant crypto was no longer in a grey area — it was legal, but regulated.
The Rise of Stablecoins
As regulations settled, one trend became clear: Nigerians were turning to stablecoins. Roughly 40% of crypto transactions in 2024 involved stablecoins, according to Chainalysis data. These tokens, often pegged to the U.S. dollar, gave users a safe way to store value and move funds without worrying about the naira’s volatility.
Freelancers began using them for payments from abroad. Small businesses used them to pay suppliers. For many, stablecoins became a quiet but vital part of daily financial life.
October 2025: A New National Stablecoin on the Horizon
On October 20, 2025, CBN Governor Olayemi Cardoso announced the creation of a task force to design an official stablecoin for Nigeria. He made the statement during the IMF and World Bank meetings in Washington.
The task force will study how such a coin could work — whether it would replace the eNaira or operate beside it. It will also assess how to regulate private stablecoins already in use across Nigeria.
This marks a major policy shift. Instead of trying to replace crypto with the eNaira, the government is now exploring how to build on what people are already using.
What It Means for Nigerians
Right now, crypto is legal but heavily regulated. Exchanges must register with the SEC and meet strict standards before serving customers. Users are free to trade, but only through approved channels.
If the CBN’s stablecoin project succeeds, it could make digital payments faster and cheaper across the country. It could also strengthen cross-border remittances — a key part of Nigeria’s economy.
Still, there are questions. Will people trust a government-issued stablecoin after the eNaira’s failure? And how will it interact with private stablecoins like USDT and USDC that already dominate the market?
For now, Nigeria’s crypto community is watching closely.
The Bottom Line
Nigeria started by fighting crypto. Then it tried to replace it. Now, it’s trying to regulate and possibly join it.
This latest move — creating a national stablecoin — could either bring digital currency into the mainstream or repeat the mistakes of the past. What’s certain is that Nigeria isn’t walking away from crypto. It’s just figuring out how to make it its own.
Source: Enat Digital News reports | FinancialContent | TradingView | Ecofin Agency | CBN press brief, Oct. 2025
Comments
Post a Comment