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Nigeria’s Crypto Surge: A Survival Strategy Against Economic Turmoil
Generated by AI AgentCoin World
Friday, Sep 19, 2025 3:14 am ET2min read
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Aime SummaryNigeria’s crypto adoption remains robust despite a decline in global rankings, according to recent data and insights from industry leaders. As of 2025, Nigeria ranks second in Africa and sixth globally in the Chainalysis Global Crypto Adoption Index, with approximately 22 million users—10.3% of its population—holding digital assets. This represents a significant leap from 0.4% a decade earlier, driven by stablecoins and youth-led mobile payments rather than speculative trading[1]. The country processed $59 billion in on-chain value between July 2023 and June 2024, with 85% of transactions valued under $1 million, underscoring the dominance of retail activity[2].
Emmanuel Onuoha, founder of Web3 Nigeria and OpenWaver, argues that Nigeria’s crypto ecosystem thrives on grassroots utility rather than institutional benchmarks. While Chainalysis’s 2025 ranking placed Nigeria sixth, Onuoha contends the methodology overlooks the scale of everyday transactions. “Our volume is driven by individuals, not megabillion-dollar institutions,” he notes, emphasizing that Nigeria’s $92.1 billion in on-chain value between July 2024 and June 2025 reflects survival strategies amid inflation, currency devaluation, and limited banking access[3]. Stablecoins like
and account for 43% of sub-$1 million transactions, serving as a hedge against the naira’s instability[4].Regulatory shifts have further bolstered adoption. The 2023 Central Bank of Nigeria (CBN) Virtual Asset Service Provider (VASP) guidelines replaced the 2021 banking ban with a licensing regime, enabling fiat on-ramps like Mular. In 2025, the Nigerian Investment and Securities Act recognized digital assets as securities, with the Securities and Exchange Commission (SEC) issuing 19 licenses[5]. A naira-backed stablecoin (cNGN) has also gained traction, with $602.9 million in circulation and over 75,000 on-chain transactions as of September 2025[6].
Challenges persist, however. Scams and rug pulls remain prevalent, with Onuoha urging builders to prioritize “IRL use cases” to counter negative perceptions. Energy shortages and internet connectivity issues also hinder adoption, while 40% of Nigerians remain unbanked[7]. Regulatory uncertainty looms, as the SEC’s draft provisional VASP license in June 2025 could raise capital requirements, potentially squeezing smaller operators[8].
Despite these hurdles, Nigeria’s crypto landscape is projected to expand. Statista forecasts 25.86 million users in 2025, with a 11.02% penetration rate. Yellow Card’s 2025 report highlights Nigeria as the global leader in stablecoin adoption, with 25.9 million users (11.9% penetration) and Sub-Saharan Africa’s highest adoption rate at 9.3%[9]. Onuoha envisions Nigeria as a top-three blockchain hub by 2030, contingent on regulatory clarity, institutional investment, and innovative solutions addressing local needs[10].
The ecosystem’s growth is further supported by cross-border use cases. Remittances, micro-imports, and salary hedging via crypto have become mainstream, with platforms like Binance P2P and Osusu digitizing savings and trade[11]. As Nigeria navigates regulatory frameworks and infrastructure challenges, its crypto adoption story underscores the potential for digital assets to address systemic economic barriers in emerging markets.
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