TLDR
- The IMF said Nigeria’s stablecoin use is testing monetary and regulatory frameworks.
- Nigeria accounts for about 60% of sub-Saharan Africa’s stablecoin inflows since 2019.
- Nigeria received about $59B in crypto inflows from July 2023 to June 2024.
- Dollar stablecoins are used for remittances, supplier payments and currency hedging.
- The IMF warned stablecoins may weaken naira demand and monetary policy transmission.
The International Monetary Fund said Nigeria’s fast-growing use of dollar-pegged stablecoins is testing existing monetary and regulatory frameworks, as households and small businesses increasingly rely on digital tokens for remittances, supplier payments, and protection against currency weakness.
In a June 16 report, the IMF said stablecoins have become a meaningful cross-border payment channel in Nigeria because they allow users with smartphones and internet access to move funds quickly and often at lower cost than traditional services. The fund said Nigeria received about $59 billion in crypto-asset inflows between July 2023 and June 2024.
Nigeria accounts for roughly 60% of sub-Saharan Africa’s stablecoin inflows since 2019, according to the IMF. The country ranked second globally in Chainalysis’s 2024 Global Crypto Adoption Index and sixth in 2025, showing continued demand for crypto-based payment tools.
Dollar Stablecoins Gain Ground in Nigeria
The IMF said stablecoins have gained adoption because they reduce long-standing payment frictions across borders. Remittance costs remain high in Africa, with the World Bank estimating that sending $200 to sub-Saharan Africa costs about 9% of the transaction value, compared with a global average of 6%.
For small firms, stablecoins can help settle payments with overseas suppliers more quickly than some traditional banking channels. For households, dollar-pegged tokens can provide faster access to remittances and another way to hold value during periods of local currency pressure.
Domestic conditions added to adoption in 2023 and 2024. The IMF cited sharp naira depreciation, high inflation, and limited access to official foreign exchange as factors that pushed households and businesses toward U.S. dollar-linked assets.
The fund also noted that after the Central Bank of Nigeria restricted banks from servicing crypto exchanges in February 2021, some activity shifted to peer-to-peer platforms and less regulated channels. That shift made stablecoins more important for users seeking dollar liquidity outside formal banking rails.
IMF Warns of Digital Dollarization Risk
The IMF said the same features that make stablecoins useful also raise policy concerns. Since most stablecoins are denominated in U.S. dollars, broad use can resemble a digital form of dollarization.
The fund said widespread stablecoin use could reduce demand for the naira and weaken the transmission of domestic monetary policy. If more payments, savings, and trade settlement move into dollar tokens, the central bank’s influence over domestic financial conditions may become harder to maintain.
Financial integrity is another concern. The IMF said activity that once moved through banks is increasingly taking place through digital wallets and crypto exchanges, which can make monitoring more difficult for regulators.
The speed of transactions and the structure of some platforms can also increase exposure to illicit finance risks, including money laundering, especially where identity checks and reporting systems are weak. The IMF said these risks are not unique to Nigeria, but they are more visible because of the country’s scale of stablecoin adoption.
IMF Calls for Practical Stablecoin Rules
The IMF said attempts to suppress stablecoin use are likely to be only partly effective. Instead, it called for a practical policy approach that allows innovation while managing risks through stronger regulation, better data, and improved payment infrastructure.
The fund listed four priorities for Nigeria. These include protecting monetary stability through credible domestic currency policy, clarifying oversight for stablecoin issuers, improving data visibility through blockchain analytics and reporting on naira-stablecoin conversions, and upgrading payment systems to reduce reliance on unregulated channels.
Nigeria has already moved toward more formal crypto oversight. Lawmakers recently advanced the Virtual Asset Service Providers Regulation Bill, 2026, which would require crypto exchanges and other operators to obtain licenses and follow compliance rules.
The IMF also pointed to Nigeria’s existing progress in instant domestic payments and regional initiatives such as the Pan-African Payment and Settlement System. It said further investment in faster and cheaper cross-border systems could reduce the need for users to rely on informal or less regulated payment routes.
The report framed stablecoins as a response to real payment gaps rather than a temporary trend. For Nigeria, the policy challenge is to address the frictions that made stablecoins attractive while limiting risks to the naira, financial integrity, and regulatory oversight.
