Nigerians are increasingly using digital dollars. The IMF says that could become a problem for the naira

Millions of dollars are moving into and out of Nigeria through smartphones, digital wallets, and dollar-backed crypto assets, creating a new challenge for Africa’s most populous economy.

• Nigeria received about $59 billion in crypto inflows between July 2023 and June 2024, according to IMF-cited data.
• Stablecoins have become a major tool for remittances, trade payments and wealth preservation.
• The IMF warns that growing reliance on dollar-backed digital assets could weaken demand for the naira.
• Regulators face the challenge of encouraging innovation without undermining monetary policy.

The International Monetary Fund (IMF) has warned that the rapid rise of stablecoins in Nigeria is making cross-border payments cheaper and faster, but could eventually weaken the effectiveness of the country’s monetary policy if regulators fail to keep pace.

The warning comes as Nigeria cements its position as one of the world’s biggest crypto markets.

According to the IMF, the country received about $59 billion in crypto-asset inflows between July 2023 and June 2024.

Nigeria ranked second globally on Chainalysis’ 2024 crypto adoption index and remained among the world’s most active markets in 2025.

Even more striking, Nigeria accounts for roughly 60% of stablecoin inflows into sub-Saharan Africa, underscoring its growing influence in the digital payments economy.

Stablecoins are cryptocurrencies designed to maintain a fixed value, usually by being tied to the U.S. dollar.

Unlike volatile digital assets such as Bitcoin, they offer users a relatively stable way to send, receive and store money.

For many Nigerians, that stability has become increasingly attractive. Years of currency volatility, rising inflation, foreign exchange shortages, and expensive international transfer fees have pushed households and businesses to seek alternatives to traditional banking channels. Stablecoins are filling that gap.

A freelancer receiving payments from overseas clients, a student paying tuition abroad, or a small business importing goods can now move money across borders within minutes using a smartphone.

The appeal is not unique only to Nigeria. Across emerging markets, stablecoins are gaining traction as consumers search for faster and cheaper payment options.

A February 2026 survey by YouGov, BVNK, Coinbase and Artemis found that Nigeria and South Africa are leading growth in stablecoin adoption globally.

The study also showed that 95% of Nigerian respondents would prefer receiving payments in stablecoins rather than naira.

According to the World Bank data cited by the IMF, sending $200 to sub-Saharan Africa still costs about 9% of the transaction value on average, significantly higher than the global average of 6%.

Stablecoins offer a way around those costs. But the technology is also creating new headaches for policymakers.

The IMF warned that growing use of dollar-linked stablecoins could accelerate what economists call “digital dollarisation” a situation where households and businesses increasingly hold and transact in digital dollars instead of their local currency.

If that trend continues, demand for the naira could weaken, reducing the Central Bank of Nigeria’s ability to influence economic activity through interest rates and other monetary policy tools.

The Fund also warned that stablecoins could complicate efforts to monitor capital flows and tackle financial crimes if transactions increasingly occur outside traditional banking channels.

“While stablecoins can improve payment efficiency, lower transaction costs and improve financial inclusion, the increasing use of U.S. dollar-denominated stablecoins raises risks to monetary sovereignty, capital flow management and financial stability,” the IMF said in its latest assessment of Nigeria’s economy.

The global stablecoin market has grown into a sector worth more than $300 billion, dominated by dollar-backed tokens such as Tether and USD Coin.

Policymakers from Washington to Brussels are racing to develop regulatory frameworks that allow innovation while protecting financial stability.

Nigeria is facing the same balancing act. The country was once known for its hardline stance on cryptocurrencies after banking restrictions imposed in 2021 pushed much of the industry into peer-to-peer channels.

More recently, regulators have adopted a more pragmatic approach, with the Securities and Exchange Commission introducing frameworks for digital asset service providers and exploring oversight for stablecoin activities.

The IMF has urged Nigerian authorities to strengthen coordination between the Central Bank of Nigeria and the SEC, arguing that digital assets should be brought fully within the country’s regulatory framework.