Nigeria Accounts for $59B in Africa’s $125B On-chain Crypto Assets: Report

Nigeria maintains the number one position in crypto adoption in Africa, contributing $59 billion to Africa’s $125 billion on-chain crypto value.

This accounts for nearly half of the region’s projected $125 billion, as stated in a report by KPMG Nigeria and blockchain analytic firm Chainalysis.

Nigeria Leads Africa in Crypto Adoption, Driving Nearly Half of the Continent’s On-Chain Value

According to the October 2024 report, Nigeria’s local exchanges received 85% of their total crypto value through smaller retail and professional-sized transactions (under $1M). 

This highlights the practical use of crypto in everyday transactions rather than solely as an investment vehicle.

Notably, Nigeria’s crypto transaction inflow fluctuated between 2021 and 2023. However, a sharp rebound was witnessed in 2024, with an approximate 25% Year-on-Year (YoY) increase.

The transaction inflow can be attributed to the decline in the devaluation of the Nigerian currency and the sanction of banks accused of defying the 2022 circular from the Nigerian Central Bank prohibiting banks’ involvement in crypto transactions. 

Experts also claimed that the high cost of cross-border transactions and the incessant inflation witnessed in the country may have driven citizens to seek a low-cost transaction fee in crypto.

However, little hedge against high transaction fees was recently achieved between Nigeria and Ghana through the BrijX B2B platform, which allows direct trade with the countries’ currencies without the interference of FOREX.

Additionally, Chainanalysis released a 2024 report on global crypto adoption, where Nigeria was ranked second behind India.

“Nigeria maintained its position as a top global player, ranking second worldwide, while Ethiopia (26), Kenya (28), and South Africa (30) also made the top 30,” Chainalysis reported.

Nigeria Supports Cryptocurrency but Calls for Regulation Amid Crypto Risk And Opportunities

In a recent development, the Minister of Information and National Orientation, Mohammed Idris, while denying an allegation of witch-hunting Binance, affirms Nigeria’s full support of a regulated crypto environment.

He cited the operation of different crypto exchanges in Nigeria without any sort of vilification as a reassurance of the country’s friendly position on digital assets.

He added that regulations must be established to monitor the huge daily digital asset transactions to combat money laundering and terrorism.

🛑 NEW: The Nigerian government has stated it remains open to cryptocurrency businesses despite filing an $80 billion lawsuit against Binance over alleged economic losses and tax evasion.

Officials emphasize that crypto regulation is still evolving, and Nigeria aims to create a… pic.twitter.com/8FSAB5AIr1

— Coinwaft (@coinwaft) March 25, 2025

Remarkably, as the crypto industry grows, solid technologies are being deployed to scale through and prevent scams.

Notwithstanding, several scenarios of scams have been related through fake websites, fake jobs, pump and dump schemes, giveaway scams, and the like, in which billions of dollars were lost.

In a different but related event pointing at regulators’ efforts to regulate crypto, federal prosecutors in Chicago issued an arrest warrant for seven individuals involved in a pump-and-dump investment scheme. 

Subsequently, federal investigators seized $214 million and filed a request in court to permanently forfeit the money to the U.S. government.