Nigeria moves closer to new crypto rules after losing its place as Africa's largest market
Regulators are preparing a framework as stablecoins gain ground among Nigerian users.
Nigeria, long regarded as Africa's largest cryptocurrency market, has been overtaken by rivals on the continent, even as its authorities edge closer to introducing new rules for the sector.
The shift reflects years of regulatory uncertainty. The Central Bank of Nigeria banned banks from servicing crypto exchanges in 2021, before lifting the restriction at the end of 2023. The authorities have since moved towards a licensing regime under the Securities and Exchange Commission, while clashing with some international platforms.
Stablecoins, digital tokens pegged to the US dollar, have become increasingly popular with Nigerian users as a means of protecting savings against the depreciation of the naira and of making cross-border payments. Stablecoins are less volatile than Bitcoin, and their global trading volume exceeded that of the Visa network in 2024.
The forthcoming rules are expected to clarify the obligations of operators and to strengthen consumer protection, in an effort to bring more of the activity into the formal financial system.