By 
Despite the Central Bank of Nigeria’s (CBN) restrictions on cryptocurrency trading, Nigeria accounted for an estimated $59 billion in virtual currency transactions between July 2023 and June 2024. This reinforces the country’s dominance in the sub-Saharan African crypto market.
A collaborative report by KPMG and blockchain analytics firm Chainalysis highlights the growing influence of cryptocurrency in the region. Sub-Saharan Africa recorded $125 billion in crypto transactions during the period, with Nigeria contributing 47% of the total volume.
The report attributes Nigeria’s increasing crypto adoption to its role as a safeguard against economic instability. It reveals that 85% of crypto transactions processed through local Nigerian exchanges were under $1 million, primarily comprising small retail and professional trades. This indicates that Nigerians leverage digital assets for daily transactions rather than speculative investments.
Additionally, the high costs and inefficiencies of traditional cross-border remittance channels have prompted both local and diaspora Nigerians to embrace cryptocurrencies as a faster and more affordable means of transferring funds.
CBN Ban Fails to Deter Crypto Growth
The report underscores that the 2021 CBN ban on cryptocurrency trading has not curbed adoption. On the contrary, it has inadvertently propelled Nigeria’s global prominence in the crypto landscape, with the country’s share of global crypto transactions continuing to rise.
KPMG and Chainalysis advocate for a shift in regulatory policies, emphasizing that integrating blockchain technology into Nigeria’s financial ecosystem could drive innovation in both banking and fintech sectors. The report suggests that collaboration with blockchain firms could help Nigerian banks modernize financial monitoring systems and enhance regulatory oversight.
Addressing Crypto-Related Scams
While cryptocurrency adoption surges, the report warns of the increasing prevalence of fraudulent activities. It highlights that global crypto scams amassed $10 billion in 2024, with high-yield investment fraud and pig-butchering schemes accounting for 83.4% of illicit proceeds.
Despite these challenges, the report argues that a well-structured regulatory framework for digital assets could enhance transparency, strengthen security measures, and foster financial inclusion. By embracing blockchain-driven compliance solutions, Nigeria could position itself as a leader in the global digital economy.
Comments