Nigeria received an estimated $92.1 billion in on-chain crypto value between July 2024 and June 2025, according to Chainalysis data. In the prior 12-month period (July 2023 to June 2024), the IMF recorded $59 billion in crypto inflows, a figure that appears in its 2026 Article IV Consultation. The IMF's Executive Board concluded its regular annual economic review of Nigeria on June 9, 2026, examining data showing $59 billion in inflows for the preceding year; Chainalysis data for the subsequent period shows that volume grew further, to $92.1 billion. The board formally called for stablecoins and other crypto assets to be brought "into the regulatory perimeter." The IMF framed dollar-pegged stablecoin adoption outside the formal regulatory perimeter as a threat to the Central Bank of Nigeria's ability to manage monetary policy.

Why Nigerians Are Holding USDT Instead of Naira

The numbers are large, but the reason behind them is straightforward. The naira lost more than 60% of its value between 2023 and early 2025, sliding from roughly 460 naira per dollar to around 1,500 naira per dollar. For households watching their savings erode, dollar-pegged stablecoins (digital tokens whose value is fixed to the US dollar) offered a practical alternative. Breet.io's 2026 survey data shows that up to 95% of crypto-active Nigerians prefer to receive payments in stablecoins rather than naira. About 22 million Nigerians currently hold some form of crypto, a figure projected to reach 28.7 million by the end of 2026.

That scale of volume became accessible partly because of a sharp policy reversal. In 2021, the CBN imposed a blanket ban prohibiting commercial banks from servicing crypto firms, pushing activity into peer-to-peer channels. In 2023, the CBN reversed course, permitting commercial banks to open accounts for licensed Virtual Asset Service Providers, and regulated volume began flowing back into traceable corridors.

USDT (Tether) and USDC are the dominant instruments. Stablecoins now make up roughly 40% of Nigeria's crypto market and account for an estimated 43% of all crypto transaction volume across Sub-Saharan Africa. Nigeria alone accounts for about 60% of stablecoin inflows in the region since 2019, according to IMF data cited by Channels Television. Chainalysis ranks Nigeria second globally in grassroots crypto adoption and sixth overall.

The Monetary Policy Problem

The IMF's concern is not with the technology itself. IMF analysis accompanying the 2026 Article IV Consultation acknowledges that stablecoins offer "improved payment efficiency, lower transaction costs, and improved financial inclusion" for Nigerian users. The problem is structural: when a significant portion of economic activity and savings shifts into dollar-denominated instruments outside the formal banking system, the CBN's interest rate decisions lose traction. If people are saving in USDT and transacting in USDT, a naira rate hike does not change their behaviour.

The IMF's board urged Nigeria to "maintain a tight monetary policy stance with a data-dependent approach until disinflation is entrenched," while simultaneously flagging that stablecoin adoption, "by reducing demand for the local currency, could weaken the transmission of domestic monetary policy." Nigeria's inflation stood at 15.4% year-on-year in March 2026. Gross foreign exchange reserves reached $46 billion in 2025, up from $40 billion in 2024, but debt service remains a serious constraint: interest payments consumed 53.2% of government revenue.

Nigeria Pushes Back

The CBN did not accept the IMF's framing without objection. On a separate but related point, the fund classified Nigeria's official foreign exchange spreads as "multiple currency practices," a designation with formal implications under IMF membership rules. The CBN rejected the label outright, stating it "does not consider the official actions MCPs" and describing the spreads as standard cost-recovery fees affecting only a small share of total turnover.

The country was removed from the Financial Action Task Force's grey list in 2023, a hard-won compliance gain, and policymakers appear intent on building a framework on their own terms.

What the Regulatory Architecture Looks Like Now

Nigeria has moved faster than many African peers on crypto legislation. The Investments and Securities Act of 2025 formally defined digital assets as securities, making the Securities and Exchange Commission the primary regulator for licensed Virtual Asset Service Providers. The Nigeria Tax Administration Act of 2025 brought digital assets into the national tax system starting January 2026, covering sales, exchanges, mining, staking, and airdrops. The CBN also formed a working group specifically focused on stablecoin adoption, with an early 2026 mandate centred on remittances and savings protection.

Nigeria's own naira-backed stablecoin, cNGN, launched in 2025 under joint SEC and CBN supervision as the country's first regulated naira-backed stablecoin. It has not gained meaningful ground against USDT. If regulators move to favour cNGN through licensing rules or reporting thresholds, the competitive dynamics of Nigeria's stablecoin market could shift significantly.

What Comes Next

Sub-Saharan Africa received more than $205 billion in on-chain crypto value in the 12 months to June 2025, a 52% year-on-year increase. Nigeria drives roughly 45% of that figure. How Nigerian policymakers respond to the IMF's pressure will be watched closely by regulators in Kenya, Ghana, and Ethiopia, all of which are seeing rising stablecoin use. A licensing framework that captures VASPs without restricting dollar-pegged assets could serve as a workable model for the region. A heavy-handed response risks pushing activity off-chain, according to analysts tracking the region's regulatory environment. The CBN working group carried early 2026 deliverables, and the status of its findings on Nigeria's stablecoin framework will offer the clearest signal of which direction the country intends to go.