The International Monetary Fund (IMF) said Nigeria’s rising stablecoin use has become a major cross-border payment channel for households and small businesses.
Summary
- Nigeria accounts for about 60% of sub-Saharan Africa’s stablecoin inflows since 2019, the IMF says.
- Dollar stablecoins help users move money faster, but may weaken demand for the naira locally.
- Regulators face pressure to improve oversight without blocking payments, remittances, and small business trade channels.
The report said users are turning to U.S. dollar-pegged tokens to send remittances, pay suppliers and hold value during currency stress.
“It is also testing the limits of existing monetary and regulatory frameworks,” the IMF said.
The fund said Nigeria received about $59 billion in crypto-asset inflows between July 2023 and June 2024. It also said the country accounts for about 60% of sub-Saharan Africa’s stablecoin inflows since 2019.
Dollar tokens offer faster payments
Stablecoins have gained users because they can move money through smartphones, digital wallets and crypto exchanges. The IMF said users can receive remittances or make cross-border payments in minutes, often at lower cost than traditional channels.
The payment case is clear in Africa, where transfer costs remain high. The IMF cited World Bank data showing that sending $200 to sub-Saharan Africa costs about 9% of the transaction value, compared with a global average of 6%. For many small firms, faster dollar settlement can help with overseas trade and supplier payments.
IMF warns of naira and oversight risks
The IMF said the same features that support stablecoin use also create policy risks. Since most stablecoins are tied to the U.S. dollar, broad use may reduce demand for the naira and weaken how domestic monetary policy moves through the economy.
“Widespread use can resemble a digital form of dollarization,” the IMF said.
The fund also warned that activity moving from banks to wallets and exchanges can make monitoring harder. Some platforms may also raise risks linked to money laundering and other illicit finance, especially where identity checks remain weak.
The report said these risks are not unique to Nigeria. Still, the scale of local adoption makes them more visible. Inflation, naira depreciation and limited access to official foreign exchange in 2023 and 2024 pushed more households and firms toward dollar-linked assets.
Regulation moves toward formal oversight
The IMF said efforts to suppress stablecoin use may work only in part. It called for a practical policy response that allows innovation while managing risks. Its priorities include stronger monetary policy, clearer rules for stablecoin issuers, better data, and payment system upgrades.
Nigeria is already moving toward formal crypto oversight. Lawmakers recently advanced the Virtual Asset Service Providers Regulation Bill, 2026, which would require crypto exchanges and other operators to obtain licenses and follow compliance rules. The bill has moved to committee review, so its final shape can still change.
Related market data also shows why the issue matters. Africa’s crypto economy has grown quickly, with stablecoins playing a role in cross-border trade, savings and payments. Nigeria remains one of the region’s leading markets, driven by currency pressure, remittance demand and mobile-first users.
Meanwhile, Nigeria has already moved in that direction. As crypto.news reported, lawmakers recently advanced a virtual asset bill that would require exchanges and other crypto firms to obtain licenses, while the central bank selected KuCoin and five local firms for a supervised virtual asset pilot.
Moreover, authorities have also started linking crypto transactions to tax identification records, showing that Nigeria is moving from broad warnings toward direct monitoring and formal oversight.
