Nigeria Needs to Advance on a Pragmatic Blockchain Strategy

Nigeria’s crypto strategy has evolved significantly in recent years, positioning the country to leverage cryptocurrencies and blockchain technology for economic growth and development. As of March 24, 2025, this strategy reflects a pragmatic balance between fostering innovation and ensuring regulatory oversight, driven by Nigeria’s status as one of the world’s leading adopters of digital assets. Below is an exploration of how this strategy could boost growth and development, drawing from current trends and initiatives.

After years of oscillation—marked by the Central Bank of Nigeria’s (CBN) 2017 warnings and 2021 ban on banks facilitating crypto transactions—Nigeria has shifted toward a more structured approach. The CBN lifted the banking ban in December 2023, allowing financial institutions to engage with virtual asset service providers (VASPs) under guidelines. The Securities and Exchange Commission (SEC) followed with its Accelerated Regulatory Incubation Program (ARIP) in June 2024, mandating VASPs to register and comply with oversight. This pivot, as emphasized by Information Minister Mohammed Idris in early 2025, aims to regulate rather than restrict, fostering a predictable environment for crypto businesses while protecting consumers.

Approved in May 2023, the National Blockchain Policy, spearheaded by the National Information Technology Development Agency (NITDA), seeks to integrate blockchain into public administration and economic sectors. It includes forming a Nigerian Blockchain Consortium to drive research, education, and implementation, targeting transparency, efficiency, and innovation. The “Nigerium” initiative, announced in 2024, is a homegrown blockchain to secure national data, enhancing sovereignty and cybersecurity while supporting local tech development.

eNaira and CBDC Leadership

Launched in October 2021, the eNaira was Africa’s first central bank digital currency (CBDC). It aims to enhance financial inclusion, streamline cross-border payments, and reduce cash dependency. While adoption has been gradual, its integration with blockchain technology positions Nigeria as a pioneer in state-backed digital finance. Nigeria’s fintech boom—highlighted by Moniepoint’s unicorn status in October 2024—intersects with crypto growth. Partnerships like the Nigeria Inter-Bank Settlement System (NIBSS) with Zone’s blockchain network in August 2024 showcase how traditional finance is adopting decentralized solutions for faster, cheaper settlements.

With over 350 million unbanked adults in Sub-Saharan Africa (World Bank estimate), Nigeria’s 25.86 million crypto users (projected for 2025 by Statista) reflect a workaround to traditional banking barriers. Crypto offers low-cost, accessible financial services, especially in rural areas where 43.5% broadband penetration (as of March 2024) meets a 219 million-strong mobile market. The eNaira and stablecoin adoption (noted by Chainalysis as growing amid Naira volatility) further bridge this gap, empowering the underbanked to save, transact, and invest.

Nigeria’s economy faces high inflation (28.9% in December 2023, per IMF) and Naira depreciation (50% drop in 2023). Crypto, particularly Bitcoin and stablecoins, has become a hedge, with Chainalysis reporting a 9% transaction volume growth in 2023-2024 despite global market dips. This resilience could stabilize household finances and encourage savings in digital assets over a weakening fiat currency. Nigerians in the diaspora sent $205.7 million via peer-to-peer crypto trades in H1 2021 alone (CoinDesk), bypassing high traditional remittance fees (often 6-10%). A regulated crypto framework could formalize this, boosting foreign exchange inflows—critical as oil exports falter—and supporting small businesses in global markets.

The crypto sector creates jobs in blockchain development, smart contract auditing, and fintech entrepreneurship. The National Blockchain Policy’s focus on talent development and the “Nigerium” project could nurture a local tech workforce, reducing youth unemployment (33.3% in 2021) and positioning Nigeria as Africa’s “Silicon Valley,” as speculated in Medium posts from January 2025. Over $500 million in Bitcoin traded in Nigeria over five years (Lexavier Partners, 2021) signals a thriving ecosystem ripe for scaling. Nigeria’s 2025 regulatory amendments to tax crypto trading and digitized transactions (Bloomberg Africa, February 2025) aim to bolster fiscal space.

With a projected crypto market revenue of $1.555 billion in 2025 (Statista), this could fund infrastructure and social programs, complementing reforms like gasoline subsidy cuts. Beyond finance, the National Blockchain Policy targets agriculture (e.g., supply chain tracking), education (e.g., credential verification), and governance (e.g., transparent voting). Blockchain’s use by NAFDAC for product verification or SON for quality assurance could cut fraud, boost exports, and attract investment. While progress is evident, inconsistent enforcement (e.g., Binance’s $81.5 billion lawsuit in 2025) risks deterring investors. A cohesive legal framework is essential.

Low financial literacy and infrastructure gaps (e.g., unreliable power) could slow uptake, requiring digital upskilling and investment. Nigeria’s crypto strategy could propel it to the forefront of Africa’s digital economy if executed well. By 2030, integrating blockchain with its 163 million internet users (March 2024) and youthful, tech-savvy population could yield a diversified, resilient economy. The IMF’s 3.3% GDP growth forecast for 2024 might climb higher with crypto-driven productivity gains. Success hinges on sustaining reforms, fostering public-private collaboration (e.g., NITDA’s consortium), and learning from global peers—potentially mirroring Singapore’s crypto-friendly yet regulated model.