Nigeria has retained its number two spot on the 2024 Global Crypto Adoption Index, trailing only India, according to Chainalysis.
Despite regulatory crackdowns and restrictions by the Central Bank of Nigeria (CBN), the country’s crypto activity continues to grow.
Between July 2022 and June 2023, Nigeria saw a 9% increase in crypto transactions, reaching $56.7 billion.
Peer-to-peer (P2P) transactions have played a significant role in sustaining this growth, even as the government cracked down on platforms like Binance.
The government’s stance on cryptocurrency is gradually evolving, with officials like Zacch Adedeji of the Federal Inland Revenue Service (FIRS) and Emomotimi Agama of the Securities and Exchange Commission (SEC) recognizing the sector’s potential.
In August, the SEC granted approval in principle to two digital asset exchanges and admitted five firms to its Regulatory Incubation Program, aiming to regulate the sector and boost investor confidence.
Industry experts believe that regulatory oversight will foster growth by providing a safer environment for investors and encouraging wider adoption of cryptocurrency in Nigeria.
Business Day