Stablecoins are quickly emerging as the cornerstone of Nigeria’s evolving crypto ecosystem, outpacing Bitcoin in trading activity and becoming an essential financial tool for everyday users and businesses alike. According to The Nigeria Web3 Landscape Report 2024 by Hashed Emergent, the volume of stablecoin transactions – particularly in USDT – has surged significantly, reaching nearly $3 billion in transfer value during Q1 2024 alone. This trend underscores Nigeria’s shift from speculative crypto trading to more practical, stability-seeking use cases.
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Much of this was fueled by grants from Layer 1 and Layer 2shttps://t.co/pkCSrFrHsg @HashedEM @QuidaxGlobal @Web3Bridge @InfusionLawyers @ethereum pic.twitter.com/4Ji7lN3srZ
— BitKE (@BitcoinKE) April 15, 2025
The data shows that the USDT/NGN pair is now among the most actively traded pairs on centralized exchanges in Nigeria, overtaking Bitcoin as a preferred entry point for many users navigating the country’s volatile currency environment. This rise in stablecoin adoption marks a fundamental transition in Nigeria’s crypto engagement, driven largely by inflation hedging, cross-border commerce, and the growing utility of dollar-backed digital assets.
“USDT has become the cornerstone – not just for Nigerians, but for many people in countries battling inflation,” noted Eseoghene Onomor, CEO of Roqqu. He explained that while Bitcoin remains prominent, stablecoins like USDT are increasingly viewed as digital dollars – a store of value and a vehicle for real-world financial activity.
“Most people buy it as a way to store value in dollar form. But more than that, I’ve seen it used heavily in trade, particularly with partners in China and Dubai.”
Binance Adds the Tether USD (USDT) / Nigerian Naira as it Removes the Binance Coin (BNB) / Ugandan Shillings Trading Pairs: https://t.co/qW6IeWItwG via @BinanceAfrica @binance @cz_binance
— BitKE (@BitcoinKE) September 16, 2020
The appeal is practical: stablecoins are fast, liquid, and cost-efficient, offering a more accessible alternative to traditional foreign exchange channels. For Nigerian importers and freelancers, for instance, $USDT has become a preferred mode of payment – offering stability without the regulatory and logistical headaches of conventional banking.
“I see in #Africa, there is so much excitement and so much appetite . . . we just want to be part of the story.” – @paoloardoino CEO, @Tether_to
Full interview: https://t.co/zY87Ewolbx $USDT pic.twitter.com/lvMyy8IYRg
— BitKE (@BitcoinKE) February 5, 2025
This stablecoin surge follows a significant regulatory pivot. In December 2023, the Central Bank of Nigeria (CBN) lifted its ban on crypto-related transactions within the formal financial system, unlocking fresh momentum across the market. The impact was immediate: centralized exchanges saw a notable revival, and stablecoin trading exploded.
Speaking on the trend, Rume Ophi, a crypto analyst and founder of Cryptopreacher Academy, emphasized that the volatility of Bitcoin is prompting a shift toward safer digital assets.
“You buy Bitcoin in the morning, and by lunchtime, it could drop 5%. Investors don’t want that kind of risk.
With stablecoins, you maintain value and liquidity, which is what many users are looking for today.”
The demand for stability is also being reinforced by global macro-economic tensions. Ophi believes ongoing tariff wars and financial market uncertainty are pushing investors, even outside Nigeria, toward stablecoins as a safer alternative.
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The IMF’s concerns echo those expressed both the Federal Reserve and the World Bank who have warned about the long-term consequences of aggressive trade policies.https://t.co/OgtYffne7Q @IMFAfrica pic.twitter.com/QsW5ZhhBb2
— BitKE (@BitcoinKE) April 18, 2025
Notably, up to 90% of US dollar-backed stablecoin transactions are driven by professional flows:
Market-making
Institutional trading, and
Liquidity management
Yet in Nigeria, retail and SME use cases are rapidly catching up.
“Stablecoins are now playing a dual role,” Onomor said.
“They are the backbone of crypto infrastructure, and they are simultaneously enabling everyday commerce.”
In fact, Tak Lee, CEO of Hashed Emergent, confirms in the report that stablecoin adoption has become a primary driver of investment in Nigeria’s fintech and crypto sectors, particularly in finance and infrastructure.
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The survey also determined that Nigerian users have the highest stablecoin affinity among the countriessurveyed – by far.
Nigerian users transact most frequently,… pic.twitter.com/fRFCXjuCZG
— BitKE (@BitcoinKE) September 16, 2024
The report places Nigeria at the top of Africa’s stablecoin market, having received $24 billion in stablecoins in 2024, more than double that of South Africa ($12B) and far ahead of Kenya ($3B). Globally, Nigeria ranks second in overall crypto adoption, a testament to both the country’s tech-savvy youth population and its urgent need for financial alternatives.
Regulatory Crossroads: From Resistance to Reform
Despite the clear utility of stablecoins, Nigerian regulators continue to treat $USDT and similar assets as violations under the Foreign Exchange Act. This legal ambiguity threatens to undermine progress.
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The judge ruled that if the defendants do not pay within 14 days, the EFCC is to bring the director back for imprisonment.https://t.co/7Sb0N2HB93 $NGN #Nigeria pic.twitter.com/X9Z1WbUVxP
— BitKE (@BitcoinKE) October 25, 2024
Industry experts argue that risk-based regulation, rather than outright suppression, is key.
“Nigeria cannot afford to repeat past mistakes,” states the report.
“A nuanced approach that recognizes stablecoins’ legitimate economic roles – from inflation hedging to cross-border trade – is urgently needed.”
Moreover, the Accelerated Regulatory Incubation Program (ARIP) introduced in 2024 may streamline licensing for exchanges and Virtual Asset Service Providers (VASPs), but regulatory bodies are being urged to revisit the blanket blacklisting of many crypto platforms, as this could send conflicting signals about Nigeria’s openness to digital innovation.
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Following the 30-day-period, the Commission indicated that it would commence enforcement action against any operating VASP that fails to comply with the directives.… pic.twitter.com/ThvMC4MwFQ
— BitKE (@BitcoinKE) June 22, 2024
As stablecoin adoption continues to deepen in Nigeria, the narrative is shifting from hype to utility. With millions turning to $USDT and similar assets for stability, liquidity, and global access, the country stands at a pivotal point. Clear and forward-thinking regulation could cement Nigeria’s place as a stablecoin powerhouse – not just in Africa, but globally.
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