Economy
Stablecoins Bridging Crypto, Traditional Finance in Nigeria—IMF
By Adedapo Adesanya
The International Monetary Fund (IMF) has said that stablecoins now form a key bridge between crypto markets and the traditional financial system in Nigeria, ranking the country top in inflows in Sub-Saharan Africa.
According to a new report from the institution, Nigeria received about $59 billion in crypto-asset inflows between July 2023 and June 2024. It ranked second globally on Chainalysis’s 2024 Global Crypto Adoption Index, and sixth in 2025.
Within sub-Saharan Africa, Nigeria accounts for roughly 60 per cent of stablecoin inflows since 2019, the report titled Stablecoins in Nigeria: A Growing Cross-Border Channel’ released on Tuesday, noted.
Nigerian households and small firms are moving money across borders in a new way: via smartphones, digital wallets, and US Dollar–pegged crypto assets known as stablecoins.
What began as a niche technology has become a meaningful cross-border payments channel. Its rapid growth is easing long-standing frictions in cross-border transactions.
It is also testing the limits of existing monetary and regulatory frameworks.
IMF noted that the appeal is straightforward, adding that stablecoins allow users with a smartphone and internet access to receive remittances or make cross-border payments in minutes, often at a lower cost than traditional channels.
“For households and small firms with limited access to formal banking services, this is a practical alternative.”
According to the report, global drivers help explain the broader uptake in Nigeria.
“Stablecoins are relatively stable in value, easy to transfer, and widely used as settlement assets within crypto markets.
“They facilitate trading between exchanges and provide a convenient store of liquidity. For remittances, they can undercut conventional channels, where the average cost of sending US$200 to sub-Saharan Africa remains around 9 per cent of transaction value, well above the global average of 6 per cent, according to the World Bank.”
Domestic conditions have amplified these effects. In 2023 and 2024, the sharp depreciation of the naira, high inflation, and constrained access to foreign exchange increased demand for dollar-linked assets.
Stablecoins offered both a hedge against currency risk and a tool for paying overseas suppliers.
After the Central Bank of Nigeria (CBN) restricted banks from servicing crypto exchanges in February 2021, IMF said activity shifted to less regulated channels, notably peer-to-peer platforms.
The rise of stablecoins in Nigeria brings clear benefits – faster, cheaper cross-border payments can support trade, remittances, and financial inclusion.
However, it said the same features raise policy concerns, including monetary sovereignty. As stablecoins are typically denominated in US Dollars, widespread use can resemble a digital form of dollarisation. By reducing demand for the local currency, the IMF said it could weaken the transmission of domestic monetary policy.
“Another concern is financial integrity. Activity that once flowed through banks is moving increasingly to digital wallets and crypto exchanges.
Monitoring systems designed for traditional intermediaries may not capture these transactions effectively, the report stated, noting that the speed and anonymity of some platforms can also increase risks of illicit finance, including money laundering.
IMF noted that these risks are not unique to Nigeria, but the scale of adoption makes them more pronounced.
The IMF also said Nigeria should adopt a balanced approach to stablecoins by supporting innovation while managing risks. It identified four priorities: maintaining a stable and credible Naira, strengthening oversight of stablecoin issuers, improving data collection on stablecoin transactions, and enhancing payment infrastructure.
The Fund noted that recent economic reforms have helped restore confidence in the naira but urged authorities to align regulations with emerging global standards and improve monitoring through better blockchain and transaction data. It also said further investment in faster and cheaper cross-border payment systems could reduce reliance on unregulated stablecoin channels.
The report noted that stablecoins are neither a passing trend nor a complete substitute for traditional finance, saying they are best seen as a response to persistent frictions in cross-border payments. In Nigeria, those frictions are real, and users have found a workaround.
“The policy challenge is to narrow the gap that made the workaround attractive, while ensuring that new risks remain contained. That requires a clear strategy: open to innovation but anchored in sound macroeconomic policy and effective regulation”, the report concluded.
By Dipo Olowookere
The bulls regained control of the Nigerian Exchange (NGX) Limited on Friday after surrendering power to the bears a day earlier as a result of mild selling pressure.
Yesterday, the Nigerian bourse rebounded by 0.54 per cent, mainly due to the gains recorded by First Holdco and others.
Data harvested by Business Post indicated that the industrial goods and energy sectors were flat, while the banking index chalked up 3.13 per cent. The insurance space expanded by 1.08 per cent, and the consumer goods counter rose by 0.21 per cent.
Consequently, the All-Share Index (ASI) went up by 1,316.52 points to 243,462.13 points from 242,145.61 points, and the market capitalisation grew by N850 billion to N157.057 trillion from N156.207 trillion.
The market breadth index was bullish during the last trading session of this week, printing 31 appreciating stocks and 23 depreciating stocks, representing strong investor sentiment.
First Holdco led the advancers’ log after it climbed 9.97 per cent to N95.95, Haldane McCall appreciated by 9.94 per cent to N3.65, LivingTrust Mortgage Bank soared by 9.73 per cent to N3.72, LASACO Assurance jumped by 5.26 per cent to N2.00, and Thomas Wyatt gained 5.10 per cent to quote at N3.09.
On the flip side, Red Star Express declined by 9.50 per cent to N20.00, Omatek slipped by 6.08 per cent to N1.70, C&I Leasing shrank by 5.93 per cent to N5.55, Jaiz Bank crashed by 5.03 per cent to N8.50, and Livestock Feed fell by 3.89 per cent to N8.65.
As for the activity chart, market participants bought and sold 685.9 million equities for N42.7 billion in 44,134 deals on Friday versus the 498.5 million equities worth N34.9 billion traded in 39,484 deals on Thursday, implying a rise in the trading volume, value, and number of deals by 37.59 per cent, 22.35 per cent, and 11.78 per cent, respectively.
Investors’ darling for the day was First Holdco, with a turnover of 225.9 billion units valued at N21.0 billion, Guinea Insurance sold 53.4 million units for N45.2 million, Zenith Bank traded 41.5 million units worth N4.7 billion, Access Holdings exchanged 29.1 million units valued at N720.6 million, and UBA exchanged 27.5 million units for N1.2 billion.
By Modupe Gbadeyanka
The Africa Association of Professional Freight Forwarders and Logistics of Nigeria (APFFLON) has appealed to the Nigeria Customs Service (NCS) to deepen its sensitisation on the newly introduced Green Tax Surcharge Policy.
The chairman of APFFLON, Mr Akeem Ayobiojo, made this plea on behalf of his colleagues on Tuesday, July 14, 2026, at the Customs House in Abuja, during a stakeholders’ engagement with the agency.
He also called for improvements in the administration of Pre-Arrival Assessment Reports and Post Clearance Audit and the African Continental Free Trade Area (AfCFTA).
Mr Ayobiojo stated that freight forwarders were happy to work with the customs, commending the organisation for implementing Chapter 99, describing it as a major relief for manufacturers.
He, however, emphasised that a deeper understanding of the new tax was necessary for his members, saying more predictable procedures would reduce delays and unexpected costs for importers and freight forwarders.
In his remarks, the Comptroller-General of Customs, Mr Adewale Adeniyi, assured manufacturers, freight forwarders and other players in the nation’s trade sector that the NCS would continue to engage them on fiscal policies affecting their businesses, saying sustained dialogue remains key to resolving implementation challenges and improving the country’s trading environment.
He also promised them the service’s resolve to enhance and facilitate trade, acknowledging that, “Your feedback is important because it helps us understand what is happening in the field, and where necessary, we will take your concerns to the Federal Ministry of Finance and other relevant government institutions.”
Speaking about Authorised Economic Operator (AEO), Mr Adeniyi further explained that Nigeria would not lower the standards required under the Authorised Economic Operator Programme as the initiative is guided by global benchmarks established by the World Customs Organisation (WCO).
On her part, the Deputy Comptroller-General of Customs for Tariff and Trade, Ms Caroline Niagwan, clarified that electric vehicles can be imported without payment of duty only by holders of Import Duty Exemption Certificate (IDEC) issued by the Federal Ministry of Finance.
She also urged importers facing classification disputes to take advantage of the Advance Ruling system, noting, “Once an Advance Ruling is issued based on genuine documentation, importers have certainty on classification, valuation or origin before the goods arrive, thereby reducing unnecessary disputes during clearance.”
By Adedapo Adesanya
The Naira appreciated against the US Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Friday, July 17, by N1.35 or 0.07 per cent to N1,380.18/$1 from N1,381.53/$1.
It also improved its value against the Pound Sterling in the same market segment during the session by N11.75 to trade at N1,854.42/£1 compared with the previous day’s N1,866.17/£1, and gained N5.69 against the Euro to sell at N1,576.99/€1 versus Thursday’s closing price of N1,582.68/€1.
In the same vein, the Naira chalked up N1 against the United States currency yesterday at the GTBank forex desk to quote at N1,388/$1, in contrast to the preceding day’s N1,389/$1, but closed flat at the black market at N1,405/$1.
The appreciation of the Nigerian currency on Friday came amid fresh signals that Nigeria is building its external reserves for protection against shocks and excessive currency volatility.
The Governor of the Central Bank of Nigeria (CBN), Mr Yemi Cardoso, said the country’s gross reserves had risen above approximately $52 billion by 15 July, while net reserves had increased from about $3 billion when the current CBN leadership took office to more than $40 billion.
Mr Cardoso linked the increase in reserves to reforms that had restored greater confidence in the foreign exchange system. He also pointed to efforts to diversify foreign currency inflows, including policies designed to increase remittances through official channels.
He noted that monthly diaspora remittances had risen above $600 million and the CBN expected them to reach approximately $1 billion by the end of 2026. The target is part of a broader effort to grow reserves through recurring inflows rather than temporary measures.
The improvement, he argued, had strengthened Nigeria’s capacity to respond when unexpected events threatened market stability.
The apex bank has also launched a new digital platform that will track every foreign exchange transaction involving Bureau De Change (BDC) operators, marking a major step in its efforts to improve transparency and strengthen oversight of Nigeria’s retail forex market.
As for the crypto market, prices were up as markets overlooked geopolitical developments and macro forces weighing on the whole market ecosystem rather than anything crypto-specific, with Cardano (ADA) up by 4.6 per cent to $0.1661.
Bitcoin (BTC) jumped by 1.8 per cent to $63,968.32, Ethereum (ETH) improved by 0.9 per cent to $1,843.88, Dogecoin (DOGE) also rose by 0.9 per cent to $0.0723, Solana (SOL) soared by 0.6 per cent to $74.90, Ripple (XRP) also appreciated by 0.6 per cent to $1.08, and Binance Coin (BNB) advanced by 0.1 per cent to $567.32.
However, TRON (TRX) depreciated by 0.2 per cent to close at $0.3218, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 each.
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