Nigeria has positioned itself as the largest hub for stablecoin use in Africa, with transactions valued at nearly $22 billion between July 2023 and June 2024, according to fresh insights from Yellow Card, a major digital payments and stablecoin infrastructure provider.
The report, Stablecoin Adoption in Emerging Markets, reveals how Nigerians are increasingly turning to dollar-backed tokens as protection against the naira’s turbulence and persistent shortages in foreign exchange supply.
Stablecoins now represent 43% of total crypto transaction volumes across Sub-Saharan Africa, cementing their role as a financial lifeline.
“Stablecoins are no longer just speculative tools; they’ve become essential for Nigerians navigating inflation, cross-border trade, and FX scarcity,” noted Lasbery Chioma Oludimu, Vice President of Global Operations at Yellow Card Nigeria.
A Growing Financial Escape Route
As official FX markets remain constrained and the naira continues its steep fluctuations, businesses, importers, and even households are adopting stablecoins as a shield for purchasing power. For many SMEs, stablecoins provide smoother access to trade financing and a cheaper, faster alternative for international payments.
Yellow Card’s Nigeria Country Manager, Somtochukwu Nsofor, emphasized their relevance for sectors like oil and gas, banking, and manufacturing, stating that stablecoins enable companies to withstand shocks by reducing FX risk and ensuring seamless global transactions.
Challenges That Could Slow Adoption
Despite the strong momentum, experts warn that overdependence on the dollar, low digital literacy in rural areas, and weak infrastructure could hinder nationwide adoption.
Globally, stablecoins have expanded from $5 billion in market cap in 2020 to $230 billion by May 2025. Yet their greatest impact is felt in markets like Nigeria, where financial systems remain fragile, and innovative tools are filling critical gaps.
Global Shifts Driving Local Uptake
External developments are also shaping adoption. The U.S. tariffs on African exports (up to 30% in August 2025) have nudged African businesses toward stablecoin-based trade. Additionally, America’s GENIUS Act, which provides a regulatory structure for stablecoins, has indirectly boosted African market confidence.
Nigeria Eyes Its Own Digital Currency Innovation
Back home, regulators are beginning to respond. The Securities and Exchange Commission (SEC) has launched the “Crypto Smart, Nigeria Strong” initiative to develop a clear framework for stablecoin use. SEC Director-General, Emomotimi Agama, revealed that the body is even considering a naira-backed stablecoin supported by audited reserves, aimed at powering domestic payments, trade, and programmable finance solutions.
