The International Monetary Fund has said Nigerians are increasingly using U.S. dollar–pegged stablecoins, digital wallets and smartphones to send and receive money across borders, with about $59 billion in crypto-asset inflows recorded between July 2023 and June 2024.
In a report titled, “Stablecoins in Nigeria: A Growing Cross-border Channel” the Bretton Words institution said stablecoins have shifted from a niche tool to a significant cross‑border payments channel.
Authors of the report, IMF Mission Chief for Nigeria, Axel Schimmelpfennig and Bo Zhao (economist, of the IMF Strategy, Policy, and Review Department, noted that Chainalysis ranked Nigeria second globally on its 2024 Global Crypto Adoption Index and sixth in 2025, and within sub‑Saharan Africa the country accounts for roughly 60 percent of stablecoin inflows since 2019.
The IMF attributed the uptake to practical advantages: stablecoins let users with a smartphone and internet access receive remittances or make payments abroad in minutes, often at lower cost than conventional channels.
That is especially valuable for households and small firms with limited access to formal banking. Globally, stablecoins’ dollar denomination, ease of transfer and widespread use as settlement assets have supported their spread.
The IMF noted that for remittances they can undercut traditional channels, at a time when the average cost of sending US$200 to sub‑Saharan Africa is about nine per cent, above the global average of six per cent, according to the World Bank.
Domestic conditions amplified demand. Sharp naira depreciation, high inflation and constrained foreign‑exchange access in 2023–24 pushed users toward dollar‑linked assets as a hedge and a method for paying overseas suppliers.
After the Central Bank of Nigeria in February 2021 restricted banks from servicing crypto exchanges, activity shifted to less regulated channels, notably peer‑to‑peer platforms.
While the IMF said stablecoins offer faster, cheaper cross‑border payments that can support trade, remittances and financial inclusion, it warned of policy risks. Widespread use of dollar‑denominated stablecoins can resemble digital dollarisation, reducing demand for the naira and weakening the transmission of domestic monetary policy.
The migration of flows from banks to digital wallets and crypto exchanges may also weaken monitoring systems designed to detect illicit finance and money‑laundering.
The IMF advised against outright suppression as likely only partly effective and recommended a pragmatic strategy to balance innovation with risk management. It set out four priorities for Nigerian authorities:
Sustain monetary stability through credible macroeconomic policy to counteract digital dollarization.
Strengthen oversight by clarifying the regulatory treatment of stablecoin issuers and aligning rules with emerging international frameworks while adapting them to local conditions. The IMF noted Nigeria has already issued rules for virtual asset service providers and CBN guidance on bank interactions with crypto firms.
Improve data by combining blockchain analytics with reporting on naira–stablecoin conversions to enhance visibility of flows and risks.
Upgrade payment infrastructure to deliver faster, cheaper and more interoperable cross‑border systems, reducing reliance on unregulated channels.
The IMF concluded stablecoins are neither a passing fad nor a full substitute for traditional finance. They have emerged as a workaround to persistent frictions in cross‑border payments; policymakers must close those gaps while containing new risks through sound macro policy, clearer regulation, better data and improved payment systems.
