Nigeria has emerged as the largest market for stablecoins in Africa, achieving an outstanding $22 billion in transactions from July 2023 to June 2024, as stated in a recent report by Yellow Card, the foremost stablecoin payment infrastructure provider on the continent. This achievement not only solidifies Nigeria’s leadership in Africa’s digital asset sector but also emphasises the country’s swiftly progressing financial environment, where blockchain-based solutions are becoming more prevalent.
Stablecoins, which are digital currencies pegged to assets such as the U.S. dollar, are gaining traction in Nigeria as essential tools for hedging against inflation, managing naira volatility, and addressing foreign exchange scarcity. The report indicates that Nigerian traders, remittance users, and businesses are at the forefront of this adoption, utilizing stablecoins for cross-border trade, savings, treasury management, and everyday transactions. Currently, stablecoins account for 43% of all cryptocurrency transaction volumes in Sub-Saharan Africa, with Nigeria leading the way ahead of South Africa, Kenya, and Ghana.
Experts attribute Nigeria’s success to its dynamic fintech ecosystem, youthful population, and high rate of digital adoption. However, several structural challenges persist, including regulatory uncertainty, risks associated with dollarisation, limited digital literacy in rural areas, and infrastructure constraints that could hinder broader adoption.
Global events are also influencing Nigeria’s ascent in the stablecoin market. The U.S. decision to impose tariffs of up to 30% on exports from 47 African nations as of August 2025 has heightened the demand for dollar-backed stablecoins, as businesses look for alternatives to scarce hard currency. Additionally, the passage of the GENIUS Act in the United States, which established a clear regulatory framework for stablecoins, has indirectly boosted confidence in African markets.
In response to this evolving landscape, Nigeria’s Securities and Exchange Commission (SEC) has launched the “Crypto Smart, Nigeria Strong” initiative, aimed at co-developing a regulatory framework for stablecoins, including plans to create a naira-pegged stablecoin backed by verifiable reserves.
With $22 billion in transactions, Nigeria is not only setting the trend in Africa but also signalling the continent’s increasing significance in the future of global digital finance.
