Nigeria: Stablecoins Become Growing Cross-Border Channel in Nigeria

16 June 2026
Daba Finance (Abidjan)

Stablecoins are becoming a major cross-border payment channel in Nigeria as households and small businesses use dollar-linked digital tokens to move money faster and at lower cost.

The IMF said Nigeria received about $59 billion in crypto-asset inflows between July 2023 and June 2024. The country ranked second globally on Chainalysis's 2024 Global Crypto Adoption Index and sixth in 2025. Within sub-Saharan Africa, Nigeria has accounted for about 60% of stablecoin inflows since 2019.

Stablecoins are being used for remittances, supplier payments and dollar liquidity. Their appeal has grown because users can receive or send funds through smartphones and digital wallets in minutes. The IMF said remittance costs to sub-Saharan Africa remain about 9% for a $200 transfer, compared with a global average of 6%.

Domestic conditions have also supported adoption. Naira depreciation, high inflation and limited access to foreign exchange in 2023 and 2024 increased demand for dollar-linked assets. After the Central Bank of Nigeria restricted banks from servicing crypto exchanges in 2021, more activity shifted toward peer-to-peer channels.

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The IMF said stablecoins can support trade, remittances and financial inclusion, but they also raise risks for monetary policy and financial integrity. The Fund said Nigeria should strengthen oversight, improve data on naira-stablecoin conversions and upgrade payment infrastructure rather than try to suppress stablecoin use.

Key Takeaways

Stablecoins in Nigeria are best understood as a response to payment frictions, not only as a crypto trend. Users are turning to them because cross-border transfers remain expensive, bank channels can be slow and access to foreign exchange is limited. For small firms, stablecoins can make it easier to pay suppliers and manage dollar exposure. For households, they can make remittances faster and cheaper. But the same growth creates policy problems. If dollar-linked tokens become widely used, they can reduce demand for the naira and weaken the reach of monetary policy. If flows move outside banks, regulators may also lose visibility over money laundering, fraud and illicit finance risks. The IMF's position is practical: Nigeria should allow useful innovation while closing the gaps that made stablecoins attractive. That means maintaining confidence in the naira, clarifying rules for issuers and virtual asset service providers, collecting better data and improving cross-border payment systems. The goal is not to stop stablecoins. It is to make formal payment rails fast, cheap and trusted enough that users do not need to rely on less regulated channels.

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