Despite the Central Bank of Nigeria (CBN) prohibiting cryptocurrency trading, Nigerians transacted approximately $59 billion in crypto assets between July 2023 and June 2024, according to a report by KPMG and blockchain analytics firm Chainalysis.
The report highlighted that cryptocurrency is reshaping financial systems across sub-Saharan Africa, with the region accounting for an estimated $125 billion in crypto transactions. Nigeria’s contribution of $59 billion makes it the leading player in the region.
It further suggested that economic hardship is a key driver of Nigeria’s high crypto adoption, as 85% of the total crypto value received by local exchanges consisted of small retail and professional transactions under $1 million. This, it said, indicates that crypto is being used for everyday financial transactions rather than merely as an investment asset.
Additionally, the report noted that high costs associated with cross-border transactions via traditional banking channels have pushed many Nigerians, both locally and in the diaspora, toward cryptocurrency as a faster and more cost-effective remittance option.
Despite the CBN’s 2021 ban on crypto trading, the report pointed out that the restrictions have done little to curb its growth. Instead, Nigeria’s share of the global crypto market has continued to rise.
KPMG and Chainalysis advised that a shift toward regulation and integration could be more beneficial than outright restrictions.
The report argued that collaboration between banks and blockchain firms could expose financial institutions to technological innovation, enabling them to upgrade monitoring systems beyond traditional capabilities.
However, it also warned of the risks associated with crypto adoption, particularly concerning scams and fraud.
It revealed that crypto-related scams generated an estimated $10 billion in revenue in 2024, with “pig-butchering” and high-yield investment scams accounting for 83.4% of those fraudulent activities.
As crypto adoption continues to grow, the report emphasised the need for a regulatory framework that supports innovation while safeguarding users from illicit activities.
