Cryptocurrency in Nigeria
From Wikipedia, the free encyclopedia
Cryptocurrency in Nigeria describes the extent of cryptocurrency use, social acceptance and regulation in Nigeria. Nigerians are one of the major global users of cryptocurrencies.
In 2017, the Central Bank of Nigeria instructed commercial banks to desist from cryptocurrency transactions. In 2025, the Investments and Securities Act (2025) was enacted, regulating cryptocurrency, and recognizing digital assets as financial securities in Nigeria.
Perception
According to a 2020 online survey, 32% of participating Nigerians used cryptocurrencies. With a total cryptocurrency transaction volume amounting to $400M, Nigeria ranks third after the United States and Russia according to 2020 estimates.[1] The most traded pair[when?] is Bitcoin/Naira, and other cryptocurrencies popular in Nigeria include Dash and Ripple.
At least as of late 2020, cryptocurrencies in Nigeria are a parallel and smaller system to the Naira, the official currency. Researchers at the Central Bank of Nigeria suggest that rather than threatening the importance of the Naira,
"Cryptocurrencies can have a positive effect by acting as a disciplining device to central banks. Currency competition can succeed in calming inflation and preventing the sort of manipulation of interest rates and prices to which governments have historically been prone. This is a partial vindication of Hayek (1976), who argued in favour of breaking the state monopoly on money as a way to ensure the stability of the official currency[sic]."[2]
In February 2021, the Central Bank of Nigeria issued directives restricting all financial institutions from processing cryptocurrency transactions, barring cryptocurrency exchanges from the traditional banking system.[3]
In February 2024, the Africa Stablecoin Consortium (ASC), composed of Nigerian financial institutions, fintech, and blockchain experts, launched a compliant Nigeria Naira (cNGN) stablecoin.[4] By that December, Nigerians owned 73% of the cryptocurrency in Africa.[5] In 2025, in addition to the Naira-fixed cNGN stablecoin issued by WrappedCBDC,[6] at least 27 cryptocurrency companies and startups operate in Nigeria, including Zone, Nestcoin, Wirepay, Breet, Busha, Quidax, and Yellowcard .[7][8]
The Securities and Exchange Commission, under the Nigeria Capital Market Institute (NCMI), and Kenya School of Government (KSG) partnered with Busha to design a cryptocurrency study programme, "Digital Assets Innovation, Industry, Regulation and Compliance (DAIIRC)", for leaders of financial institution, and other decision-makers, which is to be developed by Cambridge Enterprise of Cambridge University.[9]
Bitcoin was initially looked upon with scepticism and associated with Ponzi schemes such as Bitconnect, OneCoin,[citation needed] and Mavrodi Mudial Moneybox (MMM).[10] Scams were commonplace in Nigeria, with Bitcoin often used for the victims of the scams to make payments.[11]
Factors that promote use
The official exchange rate in Nigeria of the Naira to foreign currencies is set by the Nigerian Central Bank,[12] and thus not by forex markets. The central bank tends to devalue the Naira against other currencies. This devaluation is a factor that causes Nigerians to look elsewhere to preserve the value of the money they earn. In 2020 the Central Bank of Nigeria decreased the value of the Naira by 24%.[1]
Transferring money from and to Nigeria is very costly using the traditional banking system, and cryptocurrency provides an alternative to the high fees experienced there.[1]
Following the freezing of bank accounts for cryptocurrency-related activities, many Nigerians have said they will continue to use cryptocurrencies where they can and that they will switch to using peer-to-peer transactions.[1] These bypass traditional banks entirely because cryptocurrencies are sent from one person decentralised wallet to another.[13]
Similarly, people have had their bank accounts blocked by authorities for participation in the End SARS anti-police brutality protests, leading to increased use of digital currencies with Bitcoin trending on Twitter at the time of the protests.[1]
