Nigeria has emerged as one of the leading countries in cryptocurrency adoption, with its citizens contributing a staggering $59 billion to crypto assets in 2024. This figure comes from a recent report by Chainalysis, a leading blockchain analytics firm.
The report, which analyzed crypto adoption trends globally, ranked Nigeria second worldwide in terms of crypto adoption. It highlighted that Nigeria’s crypto market has seen significant growth in recent years, driven by several factors, including a large and tech-savvy population, a growing middle class, and a lack of trust in traditional financial institutions. Between July 2023 and June 2024 alone, Nigeria received approximately $59 billion in cryptocurrency value.
KPMG also analyzed the Chainalysis report and presented insights on the opportunities and risks associated with Nigeria’s crypto market.
The rise of Nigeria’s crypto sector has been fueled by the increasing popularity of cryptocurrencies such as Bitcoin, Ethereum, and USDT. Citizens are using digital assets to facilitate cross-border transactions, invest, and hedge against inflation.
Chainalysis further noted that Nigeria’s crypto market is characterized by a high level of retail adoption, with many individuals engaging in small-scale transactions. The market is also highly decentralized, with a large share of activity taking place on peer-to-peer platforms and decentralized exchanges.
Several factors are driving this growth, including the expansion of Nigeria’s tech industry and the growing availability of crypto-related services. Nigeria is now home to a growing number of crypto exchanges, digital wallets, and service providers, making it easier for users to buy, sell, and transact with cryptocurrencies.
The Nigerian government has maintained a nuanced stance on cryptocurrencies. While some officials have voiced concerns about the risks posed by crypto assets, others have acknowledged their potential to boost financial inclusion and stimulate economic growth.
In 2021, the Central Bank of Nigeria (CBN) issued a directive prohibiting banks and other financial institutions from facilitating crypto transactions. However, this directive did not prevent individuals from buying, selling, or holding cryptocurrencies.
Despite regulatory uncertainties and challenges, Nigeria’s crypto market continues to expand and mature. Chainalysis predicts that the market will sustain its growth trajectory in the coming years, driven by increasing adoption and ongoing innovation.
In conclusion, Nigeria’s $59 billion contribution to crypto assets underscores the country’s growing influence in the global crypto economy. As the market evolves, Nigeria is poised to play an increasingly significant role in shaping the future of cryptocurrency adoption and innovation worldwide.
