Between July 2023 and June 2024, Nigeria’s cryptocurrency transactions reached approximately $59 billion, despite the Central Bank of Nigeria’s (CBN) 2021 ban on crypto trading.

This data underscores the resilience of Nigeria’s crypto market amid regulatory challenges.

Economic Factors Driving Crypto Adoption

Several economic factors have contributed to Nigeria’s robust cryptocurrency adoption:

  • Foreign Exchange (FX) Crisis: Nigeria’s ongoing FX crisis has led individuals and businesses to seek alternative financial solutions, with cryptocurrencies offering a hedge against currency devaluation.
  • Inflation: High inflation rates have eroded the purchasing power of the Nigerian naira, prompting citizens to turn to digital assets as a store of value.
  • Remittances: Cryptocurrencies provide a faster and more cost-effective method for cross-border transactions, making them an attractive option for remittances.

Transaction Demographics

Notably, approximately 85% of Nigeria’s crypto transactions during this period were under $1 million, indicating that both retail users and small-scale investors are actively participating in the crypto economy.

Global Standing

Nigeria’s substantial crypto activity has positioned it as a leader in Sub-Saharan Africa and earned it the second spot on the Global Crypto Adoption Index.

Government Stance and Future Outlook

Despite the CBN’s ban, the Nigerian government’s stance on cryptocurrency has evolved. In December 2023, the CBN lifted the ban on crypto transactions, signaling a shift towards regulation and potential integration of cryptocurrencies into the formal financial system.