Inside Nigeria’s grassroots crypto revolution

In Nigeria, cryptocurrency isn’t just an investment—it’s a lifeline. Ranked second globally in grassroots adoption, Nigerians transacted nearly $59 billion in crypto between July 2023 and June 2024, with 85% of transactions under $1 million. This isn’t speculation; it’s survival, convenience, and financial empowerment in action

Despite facing challenges like government issues with Binance, the ban on peer-to-peer crypto trading in local currency Naira, and the introduction of a new crypto tax law, the grassroots movement around crypto continues to flourish in the country.

This grassroots movement for Bitcoin, stablecoins, altcoins, memecoins, and other cryptocurrencies has taken root in a country with limited government support. So, what’s driving this extraordinary adoption, and how has crypto gained such deep traction in Nigeria?

The driving force

In Nigeria, cryptocurrency adoption has been driven by the young, tech-savvy population, who have pushed it into mainstream discussions. Key factors behind its rise include the desire for financial freedom, protection against inflation, and the opportunity for cross-border payments.

Moyo Sodipo, COO and Co-founder of the Busha crypto exchange, revealed that everyday activities such as bill payments, mobile phone top-ups, and retail purchases are increasingly being powered by cryptocurrency. Nigerians are beginning to recognize the real-world utility of crypto in daily transactions, which is a shift from the previous perception of cryptocurrency as merely a get-rich-quick scheme.

The Nigerian Naira experienced significant depreciation in 2024, with a 40.9% decline against the US dollar, closing at N1,535 to $1. In response to the economic challenges posed by the currency's depreciation, many Nigerians are turning to crypto not only as a hedge against inflation and investment opportunity but also as a practical tool for daily transactions and remittances. 

Peer-to-peer (P2P) platforms like Paxful, Noones, and Luno have played an important role in facilitating the usage and growth of crypto in the country. These platforms allow users to send and receive money locally and from abroad with lower fees and faster transactions, making them a popular choice for Nigerians seeking more efficient ways to transfer funds internationally.

Stablecoins, such as USDT and USDC, have been instrumental in this growth, accounting for about 43% of the region's total transaction volume, according to Chainalysis. In Nigeria, stablecoins represent approximately 40% of all crypto inflows in Sub-Saharan Africa, making them a preferred medium for small to medium-sized transactions. The average cost of sending a $200 remittance from Sub-Saharan Africa is approximately 60% lower when using stablecoins compared to traditional remittance methods facilitated by fiat currency.

Source: Chainalysis

According to the co-founder of PAXFUL and CEO of Noones, Ray Youssef, P2P is probably a $500bn business in Nigeria alone. Officially, cryptocurrency volume in Nigeria is at $59 billion a year, and that’s just all the official volume of everything that is happening on centralized exchanges that can be tracked on the blockchain. So, let’s say $59bn to $60bn.

Interestingly, Youssef added that P2P transactions among Nigerians also occur on WhatsApp, Telegram, at coffee shops, and everywhere on the streets. That’s where most peer-to-peer is really happening—indicating that crypto education is growing.

The role of educational platforms

A 2024 Consensys survey found that 73% of Nigerian respondents own cryptocurrency, with 84% holding a crypto wallet. While exact adoption rates remain debated, the numbers suggest that crypto has become a mainstream financial tool in the country.

Universities such as the University of Lagos, Covenant University, and Pan-Atlantic University are offering blockchain education, and cryptocurrency courses are gradually being integrated into the curriculum. These programs provide students with both theoretical and practical knowledge of the industry. 

Several local platforms like the Busha Academy are also offering online courses on crypto trading, investment strategies, and blockchain development. Luno has also launched a discovery initiative to educate users, offering free online resources and tutorials to ensure that crypto adopters are well-informed about the risks and benefits. They’re equipping Nigerians with the required knowledge to participate safely and intelligently in the crypto space. 

Word of mouth and organic learning

In Nigeria, word of mouth and organic learning have played a big role in crypto adoption. Information about crypto is often shared informally through community meetings, local meetups, online forums, and social media. Platforms like Telegram, Twitter Spaces, and WhatsApp have become popular places for Nigerians to ask questions, share experiences, and learn from each other, as Youssef pointed out. 

These platforms act as informal educational hubs where experienced crypto enthusiasts guide newcomers, explaining market details, security tips, and investment strategies.

The role of influencers is also important. Many Nigerian crypto influencers use social media to educate their followers on everything from basic crypto concepts, like how Bitcoin works, to advanced trading strategies. They also promote the adoption of DeFi and other innovative blockchain applications. In doing so, influencers are helping bridge the gap between the technical world of crypto and everyday Nigerians who may not have formal financial education.

Nigeria’s grassroots crypto movement has thrived despite government restrictions, economic instability, and regulatory challenges. As blockchain education expands and DeFi solutions become more accessible, crypto adoption in the country is expected to grow even further. Stablecoins will remain a key tool for daily transactions, while Bitcoin and altcoins will continue to serve as hedges against inflation.

However, potential hurdles lie ahead. Stricter regulations, evolving tax policies, and global market fluctuations could impact growth. Yet, Nigerians have consistently shown resilience and adaptability, finding new ways to integrate crypto into their financial lives.

Nigeria’s crypto adoption underscores the power of decentralized finance in creating financial independence. From remittances to daily transactions, crypto has become a crucial part of financial life, reshaping how Nigerians interact with money.