Nigeria’s crypto funding doubles to $43m on stablecoin boom in 2025

Nigerian Web3 startups raised $43 million in 2025, more than double the $20 million recorded in 2024, as investors increased their focus on stablecoin-based financial products, according to a report by venture capital firm Hashed Emergent.

The firm’s Nigeria Web3 Landscape Report 2025, released in April 2026, showed that stablecoins accounted for the bulk of investment activity during the year. Finance products linked to stablecoins attracted about $38 million, representing 89 percent of total funding and marking a five-fold increase from the previous year.

The surge reflects growing demand among Nigerians for digital dollar alternatives used for payments, savings, foreign exchange, and cross-border transactions. Many individuals and businesses now rely on stablecoins to protect themselves against naira volatility and to avoid delays associated with traditional banking channels.

According to the report, stablecoin deposits in Nigeria grew by more than 9,000 percent between 2018 and 2025. In 2025 alone, Nigeria recorded $48.2 million in 24-hour peer-to-peer stablecoin transfer volume on centralised exchanges, underlining the increasing role of digital assets in everyday financial activity.

Despite the growth in funding, investment activity remained concentrated in a small number of deals. The report noted that investors shifted towards fewer but higher-impact bets, with early signs of larger Series A funding returning to the ecosystem.

Read also: IHS secures N100bn credit facility amid 2,491 Nigeria tenant losses

However, one industry participant said more than 90 percent of the funding raised in 2025 came through grants, while only one Series A deal was completed during the year. This suggests the market is still at an early stage despite the strong headline figures.

Nigeria continues to rank among the world’s leading crypto markets. The country leads Africa in stablecoin usage and ranks second on the continent overall, with an estimated 25.9 million digital asset users. Sub-Saharan Africa also maintains the highest stablecoin adoption rate globally at 9.3 percent.

The growth has drawn the attention of regulators and policymakers seeking to balance innovation with oversight.

Emomotimi Agama, director-general of the Securities and Exchange Commission, said the government is committed to supporting innovation while protecting users.

“It is heartwarming to see Nigerian youths getting involved, and we, as the government, have the responsibility to protect them. Cryptocurrency and the digital space are the future of finance; we cannot lose the new system,” Agama said.

The administration of Bosun Tijani has also intensified efforts to support blockchain adoption. The Ministry of Communications, Innovation and Digital Economy recently released a National Blockchain Policy whitepaper aimed at guiding the sector’s development in line with Nigeria’s economic priorities.

At the same time, authorities are tightening regulatory requirements for operators.

Under new tax rules effective from January 1, 2026, profits from digital assets are subject to up to 25 percent tax as chargeable gains, while Virtual Asset Service Providers are required to pay 30 percent corporate tax on profits earned from transaction fees. Exchanges must also link transactions to users’ Tax Identification Numbers and National Identification Numbers and submit monthly reports to regulators.

The SEC has equally raised minimum capital requirements for digital asset exchanges and custodians to N2 billion, a move aimed at strengthening oversight and reducing systemic risks. Industry players, however, warn that the new threshold could make it difficult for smaller local startups to survive.

Although formal exchanges are growing, peer-to-peer trading still dominates much of Nigeria’s crypto market. Many transactions continue to take place through WhatsApp groups and informal channels, especially as high compliance costs push some operators and users offshore.

For freelancers, importers, traders, and small businesses, stablecoins have become a faster and cheaper way to move money across borders compared with conventional remittance systems often affected by high fees and delays.

Still, risks remain significant. Fraud and scams continue to target inexperienced users, while volatility in related crypto assets can lead to major losses. Informal trading channels also expose users to weak consumer protection and limited regulatory oversight.

To address these concerns, the SEC has launched an Accelerated Regulatory Incubation Program designed to bring operators into supervised environments while supporting innovation.

Nigeria’s regulatory landscape for digital assets has also evolved with the enactment of the Investments and Securities Act 2025, which formally recognises digital assets as securities. The Central Bank of Nigeria has also adjusted some of its rules to allow licensed providers to operate more freely within the banking system.

Read also: Bumpa Capital, Vendorcredit partner to boost credit access for SMEs

Analysts are now watching whether the rebound in funding will translate into sustainable businesses or remain concentrated around payments and remittance tools. The report noted that Nigeria’s Web3 talent pool grew by 36 percent year-on-year, with the country now contributing about four percent of global Web3 developers.

Nigeria is also preparing to host a Stablecoin Summit in Lagos in July 2026, bringing together policymakers, startup founders, and investors to discuss the future of digital finance in Africa.

For many ordinary Nigerians, stablecoins have become more than a speculative asset. They now serve as practical financial tools at a time when access to dollars remains limited and international transfers can take days.

For startups and investors, the sharp rise in funding signals growing confidence in blockchain solutions built around real-world financial needs rather than speculative trading.

Regulators, meanwhile, face the challenge of encouraging innovation, attracting investment, and protecting consumers without stifling a fast-growing sector that is increasingly becoming part of Nigeria’s digital economy.

The 2025 figures point to strong momentum for stablecoin adoption and Web3 innovation in Nigeria. But with tougher tax rules and stricter capital requirements now in place, 2026 may determine how many operators can scale sustainably and remain profitable in the evolving market.