The International Monetary Fund (IMF) has said that the use of stablecoins in Nigeria has become a major form of cross-border payment for households and small businesses.
Summary
- Nigeria accounts for nearly 60% of sub-Saharan Africa’s income as of 2019, the IMF said.
- Dollar stablecoins help users move money quickly, but may weaken demand for naira locally.
- Regulators face pressure to improve oversight without impeding payments, outflows, and trade channels for small businesses.
The report said users are turning to tokens pegged to the US dollar to send remittances, pay suppliers and hold value in times of currency stress.
“It also tests the limits of existing financial and regulatory frameworks,” the IMF said.
The fund said Nigeria received an estimated $59 billion in crypto-asset inflows between July 2023 and June 2024. It also said the country accounted for 60% of sub-Saharan Africa’s stablecoins as of 2019.
Dollar tokens offer instant payments
Stablecoins have gained users because they can transfer money through smartphones, digital wallets and crypto exchanges. The IMF said users can receive remittances or make cross-border payments in minutes, often at lower costs than traditional channels.
The case for payment is clear in Africa, where transfer costs remain high. The IMF cited World Bank data showing that sending $200 to sub-Saharan Africa costs about 9% of the value of the transaction, compared to a global average of 6%. For many small companies, immediate dollar payments can help with overseas trade and supplier payments.
IMF warns of naira and risks of oversight
The IMF said the same factors that underpin stablecoin use also pose policy risks. Since most stablecoins are pegged to the US dollar, widespread use could reduce demand for the naira and weaken the way domestic monetary policy moves in the economy.
“Widespread use would be like a digital dollarization method,” the IMF said.
The fund also warned that the shift from banks to wallets and exchanges could make monitoring difficult. Some platforms may also raise risks related to money laundering and other illegal financing, especially where identity checks remain weak.
The report said that these dangers are not only in Nigeria. However, the level of local acquisition makes them more visible. Inflation, the depreciation of the naira and limited access to official foreign currency in 2023 and 2024 pushed more households and firms into dollar-linked assets.
The law extends to legal supervision
The IMF said efforts to suppress stablecoin use may only be partially effective. It called for a proactive policy response that enables innovation while managing risk. Its priorities include strong monetary policy, clear rules for stablecoin issuers, better data, and payment system improvements.
Nigeria is already moving towards crypto legalization. Lawmakers recently advanced the Virtual Asset Service Providers Regulation Bill, 2026, which would require crypto exchanges and other operators to obtain licenses and follow compliance rules. The bill has been referred to committee review, so its final status may change.
Related market data also shows why the issue is important. Africa’s crypto economy has grown rapidly, as stablecoins play a role in cross-border transactions, savings and payments. Nigeria remains one of the leading markets in the region, driven by currency pressures, demand for remittances and early adopters of mobile phones.
Meanwhile, Nigeria has already moved in that direction. As crypto.news reported, lawmakers have recently developed a virtual asset bill that would require exchanges with other crypto companies to obtain licenses, while the central bank has chosen KuCoin and five local firms to be a supervised virtual asset pilot.
In addition, authorities have also begun to link crypto transactions with tax identification records, indicating that Nigeria is moving from broad warnings to more specific monitoring and legal oversight.
