Nigeria Emerges as Africa’s Biggest Stablecoin Market with $22 Billion Transactions

Nigeria has cemented its position as Africa’s largest stablecoin market, recording nearly $22 billion in transactions between July 2023 and June 2024, according to a new report released by Yellow Card, Africa’s leading stablecoin payments infrastructure provider.

The report, titled Stablecoin Adoption in Emerging Markets, highlights the growing influence of stablecoins across Sub-Saharan Africa, where they now account for 43% of all cryptocurrency transaction volumes.

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.

Stablecoins — digital currencies pegged to stable assets like the U.S. dollar — are increasingly being adopted by Nigerians as a hedge against inflation, a tool for cross-border trade, and an alternative to traditional banking systems plagued by foreign exchange (FX) scarcity and currency volatility.

Lasbery Chioma Oludimu, Vice President of Global Operations and Managing Director of Yellow Card Nigeria, said the trend underscores the importance of stablecoins in solving real-world financial problems.

“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,” she noted.
“From facilitating cross-border trade to aiding treasury management, stablecoins are now a fundamental tool for financial stability and efficiency.”

Global perspective

Globally, the stablecoin market has grown from a capitalization of $5 billion in 2020 to $230 billion as of May 2025. However, Yellow Card notes that their most transformative impact is being felt in emerging economies, where they provide businesses and individuals with stability amid volatile local currencies and weak financial systems.

The report emphasized that in Nigeria, stablecoins are increasingly being used for:

• Cross-border trade – offering faster, cheaper payments compared to legacy banking.
• Treasury management – helping businesses preserve value in dollar-denominated assets.
• Inflation hedging – protecting households from naira depreciation.
• Financial inclusion – enabling the unbanked population to access digital financial services.

Impact of global disruptions

The analysis also pointed to external pressures driving adoption. The United States’ decision in August 2025 to impose tariffs of up to 30% on exports from 47 African nations has fueled demand for dollar-backed stablecoins as businesses seek to protect their purchasing power and bypass FX scarcity.

Similarly, the passage of the GENIUS Act in the U.S. earlier this year, which created a regulatory framework for stablecoins, has indirectly boosted confidence in African markets.

Somtochukwu Nsofor, Nigeria Country Manager at Yellow Card, highlighted the untapped potential across strategic sectors.

“Stablecoins hold strong promise in oil and gas, manufacturing, and banking. By enabling fast, low-cost cross-border payments and reducing exposure to FX risks, they are emerging as vital tools for business resilience,” he said.
However, he warned that challenges such as dollarization risks, rural digital literacy gaps, and infrastructure deficits must be addressed for adoption to deepen.

Regulatory response

Nigeria’s regulators are beginning to acknowledge this fast-growing trend. The Securities and Exchange Commission (SEC) recently announced its “Crypto Smart, Nigeria Strong” initiative, which will engage developers in co-creating a regulatory framework for stablecoins.

According to SEC Director-General Emomotimi Agama, the commission is also exploring a Naira-pegged stablecoin, fully backed by verifiable reserves, audited regularly, and designed for cross-border trade, payments, and programmable finance.

“This framework will allow digital asset innovation to serve real-world economic activity, beyond speculation,” Agama explained.

Looking ahead

African fintechs are already racing to embed stablecoins into mobile money platforms, payroll systems, and trade finance solutions — innovations that could provide faster, cheaper, and more inclusive alternatives to legacy banking.

For Nigeria, the $22 billion figure underscores not just adoption, but a potential shift in the country’s financial future. If properly regulated and integrated, stablecoins could become a pillar of Nigeria’s economy, providing resilience against global shocks while expanding access to financial services for millions.