Nigeria processes a significant portion of Africa's cryptocurrency transactions despite banking bans, driven by new financial mechanisms and shifting governmental policies.
Crypto Growth in Nigeria
From July 2023 to June 2024, Nigeria handled $59 billion in cryptocurrency transactions, nearly half of Africa's crypto activity. This achievement comes despite the Central Bank of Nigeria's (CBN) 2021 ban on banking crypto operations. Instead, Nigerians are using P2P trading.
Government Response and Banking Policy
Initially, CBN was strict, fining banks for violations. However, in 2023, policy changes allowed banks to partner with licensed crypto companies, and the Securities and Exchange Commission (SEC) is developing taxation and regulation for safety and control.
Future Prospects and Challenges
Cryptocurrency is gaining popularity for cross-border remittances. However, this also opens doors for scammers, with scamming reaching $10 billion in 2024. Experts stress the need for blockchain analytics to prevent fraud. Despite challenges, Nigeria's crypto dynamic remains promising.
Cryptocurrency activity in Nigeria is on the rise despite past restrictions. Changes in governmental policies and a need for effective financial tools are driving further sector growth.
