Nigeria Trades $59B in Crypto Despite Ban
Nigerians traded $59B in crypto from July 2023 to June 2024, defying the Central Bank's ban, KPMG reveals.
- Nigeria’s crypto trading hits $59B despite ban
- KPMG reports massive transaction volume
- Crypto remains vital amid economic challenges
Despite strict regulations, Nigerians are actively trading cryptocurrencies. According to a recent report by KPMG, Nigeria saw about $59 billion in crypto transactions between July 2023 and June 2024. This is a remarkable figure considering the Central Bank of Nigeria (CBN) has banned financial institutions from dealing in or facilitating cryptocurrency transactions.
The ban was intended to limit the use of digital assets, citing concerns about fraud and money laundering. However, it seems that many Nigerians have turned to peer-to-peer (P2P) platforms and decentralized exchanges to continue trading. These alternatives make it difficult for regulators to track and control transactions, allowing crypto use to thrive even under tight restrictions.
Why Crypto Is Thriving in Nigeria
Economic instability and inflation have led many Nigerians to seek financial alternatives. Cryptocurrencies like Bitcoin and USDT offer a hedge against the weakening naira, providing people with more control over their money. The younger population, particularly tech-savvy individuals, are embracing digital currencies for both investment and remittance purposes.
KPMG’s report highlights how significant crypto adoption has become in Nigeria, despite regulatory pushback. It also reflects a broader trend across Africa, where digital assets are becoming increasingly popular in countries with limited access to traditional financial services.
Looking Ahead: Regulation or Adoption?
The Nigerian government faces a growing challenge. While the Central Bank maintains its stance against crypto, the sheer volume of transactions signals a rising demand. Experts believe that regulation, rather than prohibition, might be a more effective approach moving forward. As Nigerians continue to engage with crypto, the pressure to create a clear legal framework will likely intensify.
