Nigerians are moving money across borders faster and cheaper than ever — using smartphones, digital wallets, and dollar-pegged crypto assets called stablecoins. And according to a new International Monetary Fund (IMF) report, the country now leads Sub-Saharan Africa in stablecoin inflows.
The report, titled 'Stablecoins in Nigeria: A Growing Cross-Border Channel' and released on Tuesday, says Nigeria accounted for roughly 60% of all stablecoin inflows in the region since 2019. Between July 2023 and June 2024, the country received about $59 billion in crypto-asset inflows. That's enough to rank Nigeria second globally on Chainalysis's 2024 Global Crypto Adoption Index, and sixth in 2025.
So why have stablecoins taken hold so strongly? The IMF says the appeal is simple. For households and small businesses with limited access to formal banking, stablecoins offer a practical alternative. Sending money through traditional channels to sub-Saharan Africa costs about 9% of the transaction value for a $200 transfer — well above the global average of 6%. Stablecoins undercut that, and transactions settle in minutes.
Domestic conditions in Nigeria have also fuelled the shift. In 2023 and 2024, the naira depreciated sharply, inflation stayed high, and access to foreign exchange became constrained. Stablecoins, which are typically pegged to the US dollar, offered a hedge against currency risk and a tool for paying overseas suppliers. When the Central Bank of Nigeria (CBN) restricted banks from servicing crypto exchanges in February 2021, activity moved to less regulated channels — especially peer-to-peer platforms.
"For households and small firms with limited access to formal banking services, this is a practical alternative." — IMF report
But the rapid growth of stablecoins also raises policy concerns. One is monetary sovereignty. Widespread use of dollar-denominated assets can resemble a digital form of dollarisation, reducing demand for the naira and weakening the transmission of domestic monetary policy. Another worry is financial integrity: activity that once flowed through banks is moving to digital wallets and crypto exchanges, where monitoring systems may not capture transactions effectively. The speed and anonymity of some platforms increase risks of money laundering and illicit finance.
The IMF notes these risks aren't unique to Nigeria, but the scale of adoption makes them more pronounced.
The IMF advises against trying to suppress stablecoin use outright — such attempts are likely to be only partly effective. Instead, it recommends a pragmatic approach with four priorities. First, safeguard monetary stability by maintaining a stable and credible domestic currency. Nigeria's recent macroeconomic reforms and tighter monetary policy have helped restore confidence in the naira, and sustaining that progress is critical. Second, strengthen oversight.
The Securities and Exchange Commission has already issued rules for virtual asset service providers, and the CBN has given guidance on their interaction with banks. The next step is to clarify the treatment of stablecoin issuers and align domestic rules with emerging international frameworks. Third, improve data. Combining blockchain analytics with reporting on naira–stablecoin conversions would help regulators identify risks early. Fourth, the IMF advises the government to keep adapting policies as the technology evolves.
For everyday Nigerians, stablecoins are already a practical tool — but the IMF's warning is clear: without smart regulation, the same tool that makes payments easier could also make monetary policy harder.