Nigeria’s rapidly expanding cryptocurrency ecosystem could unlock significant economic value for citizens and government if properly structured, regulated, and integrated into the formal financial system, according to leading industry experts.
A recent PwC estimate reveals that Nigeria processed $92.1 billion in cryptocurrency transactions within a 12-month period, making the country Africa’s largest crypto market and one of the most active globally.
While the figure highlights massive adoption, experts say the real opportunity lies in converting this activity into sustainable economic growth.
To examine how Nigeria can move from raw transaction volume to measurable national value, Techeconomy engaged respected voices from across the blockchain, legal, compliance, and fintech landscape:
- Chimezie Chuta, Founder, Blockchain Nigeria User Group (BNUG)
- Senator Ihenyen, Lead Partner, Infusion Lawyers and Executive Chair, Virtual Asset Service Providers Association (VASPA)
- Jude Ozinegbe, Founder, Cyberchain and Digital Transformation Consultant
- Bidemi Oke, Founder & CEO, FlashChange
Moving from Adoption to Economic Infrastructure
According to Chimezie Chuta, Nigeria’s crypto activity already represents a functioning alternative financial layer rather than a speculative trend.
“The challenge is not demand, but formal integration,” Chuta notes.
He argues that licensing compliant exchanges, custodians, and payment processors would unlock transaction visibility, consumer protection, and fiscal oversight, without suppressing usage. He adds that crypto integration could significantly improve remittances, MSME payments, and cross-border trade under AfCFTA.
Treating Crypto as a Growth Sector, Not a Risk
For Senator Ihenyen, Nigeria’s biggest shift must be philosophical.
“To turn $92.1 billion in volume into prosperity, government must move from seeing crypto mainly as a national security risk or quick revenue source to treating it as a nascent sector with long-term growth potential,” he said.
He warns that excessive capital requirements and premature taxation could stifle innovation, pushing activity back into informal channels.
Instead, he advocates incentives, infrastructure development, and support for local innovation, such as naira-based stablecoins and tokenised real-world assets, to keep value within Nigeria’s borders.
Formalisation, Not Suppression
Echoing this view, Jude Ozinegbe emphasised that the opportunity lies in making crypto “bankable.”
“Nigeria already has demand, liquidity, and talent,” Ozinegbe said. “The win is to channel that activity through regulated rails, tiered VASP licensing, compliant on-ramps, and auditable transaction trails.”
He added that once activity becomes visible, government benefits through taxes, FX efficiency, and data-driven policy, while citizens gain access to cheaper payments, capital, and financial services.
Taxing Value, Not Participation
With the Nigeria Tax Act now in effect, Bidemi Oke, founder and CEO of FlashChange, cautioned against taxing everyday participation.
“Transaction volume alone does not create economic value, structure does,” Oke explained. “Government should focus on taxing real value creation such as profits and realised gains, not routine transfers.”
He noted that predictable, proportional taxation applied through licensed entities would encourage compliance, retain innovation locally, and generate sustainable revenue over time.
Jobs, Skills, and Long-Term Competitiveness
Beyond taxation, the experts agreed that a regulated crypto ecosystem could drive:
- High-skill job creation in blockchain engineering, cybersecurity, compliance, and data analytics
- Foreign and diaspora investment into Nigerian platforms
- Exportable Web3 and fintech services
- Capital retention and reduced brain drain
- Nigeria’s emergence as a regional digital finance hub
Regulation as a Catalyst
While acknowledging progress made by regulators, particularly through the SEC’s VASP frameworks and sandbox initiatives, the experts stressed that clarity, proportionality, and collaboration remain critical to market confidence.
Drawing lessons from jurisdictions such as the EU, UAE, Singapore, and South Africa, they agreed that clear, activity-based regulation consistently outperforms prohibition or uncertainty.
A Strategic Moment for Nigeria
“Crypto is already Nigerian,” one expert concluded. “The real policy question is whether its value remains informal, or becomes national growth.”
As Africa’s largest crypto market, Nigeria stands at a pivotal moment. With smart regulation and genuine industry engagement, its $92.1bn crypto economy could become a cornerstone of inclusive growth, innovation, and digital competitiveness.
