Nigeria Emerges as Africa’s Largest Stablecoin Market with $22 Billion in Transactions
Nigeria Emerges as Africa’s Largest Stablecoin Market with $22 Billion in Transactions
By Joseph Iyaji | Akahi News
Nigeria has officially become Africa’s biggest stablecoin market, recording nearly $22 billion worth of transactions between July 2023 and June 2024.
This revelation was contained in a new report released on Tuesday by Yellow Card, Africa’s leading stablecoin payments infrastructure provider. The report, titled Stablecoin Adoption in Emerging Markets, highlights the growing importance of stablecoins across Africa, where they now account for 43% of all cryptocurrency transaction volumes in Sub-Saharan Africa.
Nigeria Leads the Pack
“Nigeria stands out as the continent’s largest stablecoin market, with nearly $22 billion in transactions between July 2023 and June 2024, followed by South Africa and other rapidly growing markets such as Kenya and Ghana,” the report stated.
Globally, stablecoins have grown from a market capitalisation of $5 billion in 2020 to $230 billion as of May 2025. However, their strongest impact has been felt in emerging markets like Nigeria, where they are transforming cross-border trade, treasury management, inflation hedging, and financial inclusion.
For Nigeria, where businesses and individuals continue to grapple with foreign exchange scarcity, volatile naira-dollar rates, and banking system inefficiencies, stablecoins have become a crucial financial tool.
Financial Inclusion and Economic Empowerment
Vice President of Global Operations and Managing Director of Yellow Card Nigeria, Lasbery Chioma Oludimu, noted that stablecoins are fast becoming indispensable to the country’s financial landscape.
“This report highlights the significant role of stablecoins in emerging markets. It demonstrates how stablecoins are crucial for financial inclusion and economic empowerment, especially where traditional banking is unreliable. From facilitating cross-border trade to aiding treasury management, stablecoins are now a fundamental tool for financial stability and efficiency,” she explained.
The report also observed that the United States’ decision in August 2025 to impose tariffs of up to 30% on exports from 47 African nations has accelerated reliance on dollar-backed stablecoins in Africa, as businesses and individuals seek to preserve purchasing power and navigate dollar shortages.
Sector-Specific Opportunities and Challenges
Nigeria’s Country Manager at Yellow Card, Somtochukwu Nsofor, highlighted the strong potential of stablecoins in sectors like oil and gas, manufacturing, and banking.
By enabling fast, low-cost cross-border payments and reducing exposure to forex risks, stablecoins are becoming essential for business resilience. However, Nsofor cautioned that risks such as dollarisation, rural digital literacy gaps, and infrastructure limitations remain obstacles to mass adoption.
Meanwhile, African fintech companies are racing to integrate stablecoins into mobile money platforms, payroll systems, and trade finance solutions, creating faster and more inclusive financial systems than legacy banking models.
SEC Moves Towards Stablecoin Regulation
Recognising the growing adoption trend, Nigeria’s Securities and Exchange Commission (SEC) has announced plans to launch a framework for stablecoin regulation under its “Crypto Smart, Nigeria Strong” initiative.
According to SEC’s Director-General, Emomotimi Agama, the commission is actively exploring a regulatory model for Naira-pegged stablecoins. These digital assets will be fully backed by verifiable reserves, regularly audited by independent custodians, and deployed for cross-border trade, payments, and programmable finance.
Agama stressed that the framework is aimed at ensuring digital asset innovation contributes directly to real-world economic activity rather than mere speculation.
With Nigeria already leading Africa’s stablecoin revolution, experts believe the country could set the pace for other emerging markets seeking to build resilient and inclusive financial ecosystems.
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