In a country where the Naira has seen significant value loss over the past few years, Nigerians are quickly adopting strategies to retain value on their wealth.
While many consider investing in crypto to hedge against currency inflation, some skip the volatility for stablecoins’ stability.
Stablecoins are dollar-pegged cryptocurrencies like USDT, USDC, BUSD, etc., offering the benefits of crypto without the volatility risk.
While these coins do not promise a 10x moonshot, they offer the means for Nigerians to save in dollars.
Furthermore, platforms like Dtunes.ng allow quick cash-to-crypto conversion, without paperwork or forex queues.
Why Nigerians Are Holding Stablecoins
Nigerians have found a new affinity for stablecoins, and the reasons are rooted in the country’s harsh economic realities.
The Naira has lost significant value since 2023, as the Naira to dollar rate has risen from N388 to N1550. Amid this, the price for day-to-day goods has more than doubled, while salaries and Naira savings have remained stagnant.
For many, stablecoins have become useful as modern-day digital savings accounts. Besides, stablecoins are more accessible dollar currency to many Nigerians compared to dorm accounts or foreign exchange from financial institutions.
With platforms like Dtunes.ng, you can easily log in to the app and have your stablecoins in USDT or USDC in minutes.
What The Experts Are Saying
A Chainalysis report from October 2024 highlights Nigeria as a top global player in the crypto market. According to the report, Nigeria ranked second worldwide in the Global Adoption Index, with African countries like Ethiopia (26), Kenya (26), and South Africa (30) also making the top 30.
This report further highlighted the growing need for accessible financial services, hedge against inflation, payments for business, and retail-sized transfers as key drivers of this increasing adoption in Sub-Saharan Africa. Chainalysis reported that stablecoins accounted for 43% of the region’s total transaction volume between July 2023 and June 2024.

Furthermore, the report recognized Nigeria’s role as a major player, highlighting the naira devaluation fueling stablecoin usage.
Nigeria reportedly processed approximately $59 billion in crypto transactions during the monitored timeframe. 85% of those transactions are under $1 million, indicating a solid presence of smaller retail and professional transactions.
On the ground, Nigerian freelancers, traders, and tech-savvy savers have prioritized the stability of stablecoins over speculation on other crypto assets. Considering recent economic realities, experts believe stablecoins might be the smartest hold for Nigerians.
Both Sides of The Stablecoin
Stablecoins offer the preferred middle ground for Nigerians who do not want to save in Naira, and do not want exposure to the price fluctuations of cryptocurrencies like Bitcoin or Ethereum. The key benefit of stablecoins is their stability.
Pegged 1:1 to the dollar unlocks global utility and preserves your purchasing power while the local currency slides.
Amid the forex scarcity in Nigeria over the past years, stablecoins offer much more liquidity as platforms like Dtunes.ng let you sell within minutes.
Beyond that, there are multiple opportunities for passive earnings on stablecoins. Some crypto wallets and DeFi platforms offer up to 5 – 10% APY on stablecoins, allowing you to put your money to work.
Download Dtunes app here
However, there are two sides to a coin, so let’s discuss potential limitations or risks to stablecoins.
Stablecoins come with a centralization concern as opposed to many other cryptocurrencies. Private companies issue stablecoins like USDT and USDC and this means they can blacklisted, frozen, or restricted based on internal policies or external pressure from authorities.
While they still offer the same privacy as cryptocurrency, this highlights a major misconception for many new stablecoin users.
Also, these centralization elements pose a counterparty risk for stablecoin holders, like most financial companies do. Your funds could be affected if the issuing company mismanages the reserves or faces legal trouble.
The collapse of TerraUSD (an algorithmic stablecoin) in 2022 is a cautionary tale for potential stablecoin holders.
However, it’s important to note that stablecoins like USDT and USDC are fiat-backed and have been considered some of the more secure stablecoins for individuals.
Depegging is one of the biggest risks with stablecoins, which is when a stablecoin loses its 1:1 peg to the US dollar.
The TerraUSD collapse started as a simple depeg. However, the lack of true reserves combined with market manipulation resulted in a massive price crash and huge losses for the stablecoin holders.
Moreover, fiat-backed stablecoins like USDT and USDC have seen temporary depegs, often triggered by negative news about the issuing company or liquidity pressure. Nevertheless, it has proven to be nothing to worry about over the years.
Final Thoughts
While stablecoins may not always be the wise investment choice, they make the most sense for Nigerians. The coins offer a safe parking spot between keeping savings in Naira and crypto volatility, as the risk of a Naira devaluation lingers.
They have proven to help protect value, stay liquid, and provide money without friction for most Nigerians over the past few years. And sometimes not losing is the smartest move rather than chasing pumps.