By 
Busha, a leading Nigerian cryptocurrency exchange with a provisional license from the country’s Securities and Exchange Commission (SEC), has officially listed the compliant NGN (cNGN) stablecoin on its platform. This development marks the introduction of Nigeria’s first private-sector-backed stablecoin, pegged 1:1 to the Naira, as part of an effort to modernize the country’s digital financial landscape.
The stablecoin listing was announced on February 3, allowing users to buy and sell cNGN directly on Busha. However, its current functionality is limited, as users cannot transfer it to third-party wallets or decentralized exchanges. The stablecoin’s restricted usability underscores its early-stage rollout, with plans for broader integration in the future.
“We are excited to announce that cNGN (Compliant Nigerian Naira), the private-sector stablecoin poised to transform Nigeria’s digital economy, is now available on Busha,” the exchange posted on the social media platform X.
Unlike the Central Bank of Nigeria’s (CBN) government-led eNaira, the cNGN stablecoin is a private initiative supported by the SEC’s Regulatory Incubatory (RI) program. In August 2024, the SEC approved the project, granting Wrapped CBDC Ltd—an entity created in partnership with blockchain firm Convexity—an approval in principle to spearhead the stablecoin’s development.
The cNGN initiative is driven by the African Stablecoin Consortium (ASC), a coalition of banks, fintech companies, and blockchain technology firms, including Convexity, Alpha Geek Technologies, Digital Currency Coalition, and Interstellar. The project was conceived as an alternative to USD-pegged stablecoins like Tether (USDT) and USD Coin (USDC), aiming to strengthen the Naira’s presence in digital asset markets.
Blockchain Integration and Adoption Challenges
The stablecoin is built on the Bantu blockchain—a layer-1 network—and is designed to operate across multiple blockchain protocols, including Binance Smart Chain, Base, Ethereum, Polygon, and Assetchain. However, cNGN is currently only fully integrated on Binance Smart Chain (BEP-20) and Base, a layer-2 scaling solution. This enables transfers between wallets within the Base network but does not yet support widespread trading on decentralized exchanges.
Despite its official launch in 2025, cNGN has faced hurdles, including regulatory delays, stalled partnerships, and compliance challenges. In a January 8 press release, the ASC initially postponed the stablecoin’s rollout, citing ongoing engagements with regulatory bodies. The sudden launch weeks later raised questions about the project’s strategic direction.
Liquidity remains another key concern. The cNGN website reports only 4,400 coins in circulation, signaling a low supply pool that could impact trading activity. However, Busha maintains its own cNGN liquidity pool, ensuring control over trading speed and order execution.
“Busha is able to mint and burn cNGN as needed. We maintain liquidity to meet customer demands, and there are no limits to how much cNGN users can buy or sell at a time, apart from standard account verification limits,” said Ngozi Okonye, Busha’s Marketing Manager.
Regulatory Compliance and Market Outlook
Busha has emphasized that its decision to list cNGN aligns with SEC guidelines on digital asset exchanges. The exchange follows a rigorous asset listing protocol, evaluating liquidity, regulatory compliance, and reserve management before launching any token on its platform.
“The SEC made it clear that digital asset issuers and exchanges must operate within a structured regulatory framework, which cNGN adheres to,” Okonye stated in an email to TechCabal. “We have maintained an open dialogue with regulators to ensure that our [cNGN] listing aligns with existing policies and broader financial system objectives.”
While Quidax, another SEC-licensed crypto exchange, has yet to list cNGN, other platforms can integrate the stablecoin by making API calls for contract addresses, balance checks, and transaction processing.
Future Prospects and Adoption Hurdles
cNGN has potential use cases in remittances and digital payments, offering lower transaction fees than traditional USD-backed stablecoins. For instance, sending $100 USDT on Ethereum’s congested network costs at least $1, whereas a similar cNGN transaction could cost between ₦150–₦500 (less than $1).
However, adoption challenges persist. The Naira’s volatility and low trust in the local currency may limit the stablecoin’s appeal as a store of value. “It could have been better timing if cNGN launched years ago,” noted a Web3 policy consultant.
The stablecoin’s prospects could improve once it starts trading on-chain, potentially attracting major global exchanges like Binance, which previously delisted the Naira. However, the SEC remains cautious, controlling which platforms can list cNGN to mitigate risks.
As Busha moves forward with its phased rollout, the success of cNGN will depend on regulatory oversight, public trust, and broader ecosystem adoption.
Comments