Nigeria is facing a severe economic crisis, with inflation peaking at 24.48% in January 2025 before easing slightly to 23.18% in February. However, this decrease is mainly due to adjustments in the calculation of the Consumer Price Index (CPI), not reflecting actual improvement. The naira has also depreciated by 230% against the USD in the past year, causing a severe cost of living crisis.
In this context, crypto is becoming an asset protection solution for the people of Nigeria. According to Chainalysis, from July 2023 to June 2024, cryptocurrency transactions in Nigeria reached 59 billion USD.
The Nigerian government is tightening crypto regulations by legalizing and taxing it. The Securities and Exchange Commission of Nigeria (SEC) is building a legal framework for digital asset trading, while the Central Bank of Nigeria (CBN) is trying to stabilize the exchange rate and restore investor confidence.
Although crypto helps people combat inflation, Nigeria still has to balance between technological innovation and financial risk control to avoid viewing crypto as just a temporary solution.