Nigeria’s crypto market thrives with $59 Billion contribution

Keep up with the latest news and be part of our weekly giveaways and airtime sharing; follow our WhatsApp channel for more updates. Click to Follow us

Nigeria has made significant contributions to the global cryptocurrency market despite the Central Bank of Nigeria’s ban on cryptocurrency trading. According to a joint report by KPMG and Chainalysis, between July 2023 and June 2024, Nigeria contributed an estimated $59 billion to the virtual currency. This represents a substantial portion of the total $125 billion in crypto assets in sub-Saharan Africa.

For further information, read more details here

The report highlights that Nigeria’s leading position in the region is largely due to the population’s use of crypto to combat economic challenges. “This signals the real-world utilisation of crypto, especially in the day-to-day transactions, rather than as an investment alternative.” Approximately 85% of the total crypto value received by Nigeria’s local exchanges came from small-denomination retail and professional-sized transactions under $1 million.

The report also notes that the 2021 ban on crypto trading had unintended consequences, failing to stem the growth and popularity of crypto in Nigeria. Instead, the percentage proportion of global crypto value flowing into Nigeria has increased since 2021.

KPMG and Chainalysis advise that a shift towards regulation and integration could benefit both traditional banks and crypto companies. By collaborating with blockchain companies, banks can gain exposure to technological innovation and improve their monitoring systems. However, the report also warns that as crypto adoption grows, so do the risks of scams and fraud, with crypto scam revenues reaching $10 billion in 2024.

The report encourages financial institutions to maximise blockchain technology’s potential to improve legacy systems and combat illicit activities. As Nigeria continues to play a significant role in the global cryptocurrency market, it is essential to strike a balance between regulation and innovation to ensure the country’s economic growth and financial stability.

Please don’t forget to “Allow the notification” so you will be the first to get our gist when we publish it. 
Drop your comment in the section below, and don’t forget to share the post.