The International Monetary Fund (IMF) says Nigeria accounts for about 60
percent of stablecoin inflows into sub-Saharan Africa, highlighting the
country’s growing role in the adoption of digital assets for cross-border
payments.
In an analysis contained in its latest Article IV consultation report on Nigeria,
the IMF said households and small businesses in the country are increasingly
turning to stablecoins — crypto assets pegged to the US dollar — to send and
receive money across borders.
The fund said Nigeria received about $59 billion in crypto-asset inflows
between July 2023 and June 2024, ranking second globally in Chainalysis’ 2024
Global Crypto Adoption Index and sixth in the 2025 ranking. “Stablecoins now
form a key bridge between crypto markets and the traditional financial system,”
the IMF said.
According to the report, the attraction of stablecoins lies in their ability to
facilitate cross-border payments and remittances at lower costs and faster speeds
than traditional channels. “The appeal is straightforward. Stablecoins allow
users with a smartphone and internet access to receive remittances or make
cross-border payments in minutes, often at lower cost than traditional channels,”
the fund said.
“For households and small firms with limited access to formal banking services,
this is a practical alternative.”
IMF said the trend has been reinforced by domestic economic conditions,
particularly the sharp depreciation of the naira, elevated inflation and
constrained access to foreign exchange in 2023 and 2024.
According to the report, stablecoins became increasingly attractive as a store of
value and a payment tool for businesses settling obligations with overseas
suppliers.
“Stablecoins offered both a hedge against currency risk and a tool for paying
overseas suppliers,” the IMF said.
The institution also noted that after the Central Bank of Nigeria (CBN)
restricted banks from servicing cryptocurrency exchanges in February 2021, a
significant portion of crypto activity migrated to peer-to-peer platforms and
other less regulated channels.
While acknowledging the benefits of stablecoin adoption, the IMF warned that
the development could pose challenges for monetary policy and financial
regulation if left unchecked.
“One is monetary sovereignty. As stablecoins are typically denominated in US
dollars, widespread use can resemble a digital form of dollarization,” the report
said.
“By reducing demand for the local currency, it could weaken the transmission
of domestic monetary policy.” The fund also raised concerns about financial
integrity risks, saying transactions that previously flowed through regulated
financial institutions are increasingly moving through digital wallets and crypto
exchanges.
“Monitoring systems designed for traditional intermediaries may not capture
these transactions effectively,” the IMF said.