The International Monetary Fund (IMF) has revealed that more Nigerians are turning to U.S. dollar-backed stablecoins and digital payment platforms for sending and receiving money across borders, with crypto-related inflows reaching approximately $59 billion between July 2023 and June 2024.
According to a report titled “Stablecoins in Nigeria: A Growing Cross-border Channel,” stablecoins have evolved from a little-known digital asset into a major tool for international payments and money transfers.
The report, written by IMF Mission Chief for Nigeria, Axel Schimmelpfennig, and IMF economist Bo Zhao, highlighted Nigeria’s growing influence in the global cryptocurrency market. Data from blockchain analysis company Chainalysis showed that Nigeria ranked second worldwide in the 2024 Global Crypto Adoption Index and sixth in 2025. Within Sub-Saharan Africa, Nigeria has accounted for nearly 60 percent of all stablecoin inflows since 2019.
The IMF explained that stablecoins have become popular because they offer a fast and affordable way to transfer money internationally. Anyone with a smartphone and internet connection can receive funds or make payments abroad within minutes, often at lower costs than traditional banking channels.
This has been especially beneficial for households, freelancers, small businesses, and individuals who face challenges accessing conventional financial services. Stablecoins are also attractive because they are tied to the value of the U.S. dollar, making them more stable than many other cryptocurrencies.
The report noted that remittance costs remain high in Africa. According to World Bank estimates, sending $200 to Sub-Saharan Africa costs an average of nine percent in fees, compared to a global average of six percent. Stablecoins provide a cheaper alternative for many users.
Economic conditions in Nigeria have also contributed to the growing adoption of stablecoins. The sharp depreciation of the naira, rising inflation, and difficulties accessing foreign exchange in recent years encouraged many Nigerians to seek dollar-linked assets as a way to protect their savings and pay overseas suppliers.
The IMF further noted that after the Central Bank of Nigeria (CBN) restricted banks from facilitating cryptocurrency transactions in 2021, many crypto users moved to peer-to-peer platforms and other less-regulated channels.
While acknowledging the benefits of stablecoins, the IMF warned that their increasing use could create challenges for policymakers. The widespread adoption of dollar-backed digital assets may reduce demand for the naira, a trend often referred to as digital dollarisation. This could weaken the effectiveness of Nigeria’s monetary policies.
The institution also expressed concerns that moving financial activities away from banks and into digital wallets may make it harder for authorities to track illegal transactions, money laundering, and other financial crimes.
Rather than banning stablecoins, the IMF recommended a balanced approach that encourages innovation while reducing risks. It urged Nigerian authorities to maintain economic stability, strengthen regulations for digital assets, improve data collection and monitoring systems, and modernise payment infrastructure.
The IMF concluded that stablecoins are no longer a temporary trend. Instead, they have become an important solution for addressing challenges in cross-border payments. However, it stressed that proper regulation, stronger economic policies, and improved payment systems are necessary to ensure that their benefits are maximized while minimizing potential risks.
