The International Monetary Fund (IMF) has once again raised red flags over Nigeria’s rising crypto adoption, warning that it poses “significant risks to macro-financial stability” – especially in the areas of:
In its latest Nigeria Article IV Consultation report (July 2025), the IMF noted that despite the Central Bank of Nigeria (CBN) lifting its crypto ban in late 2023, cryptocurrency use in Nigeria has accelerated beyond regulatory visibility – spurred by economic pressures, currency depreciation, and a growing demand for alternative savings and payment channels.
“The widespread use of crypto assets for cross-border transactions could undermine FX regulation and increase illicit capital outflows,” the IMF report warns.
Nigeria ranks among the , according to Chainalysis. The country’s volatile Naira, high inflation, and tight forex access have pushed many individuals and businesses to stablecoins like USDT to hedge value and conduct international trade.
But this decentralized, dollar-backed workaround poses a dilemma for the IMF and Nigerian monetary authorities:
Boko Haram in #Nigeria 🇳🇬 Reportedly Turning to Crypto Funding to Dodge Oversight and Sustain Activities
In 2024, courts convicted over 85 in Boko Haram-related crypto funding, and six Nigerians were charged in the UAE for moving $780K via crypto.https://t.co/Gho7Sdo9bW pic.twitter.com/rXcrNMyezI
— BitKE (@BitcoinKE) June 27, 2025
The IMF noted that Nigeria’s current regulatory regime remains fragmented. While the Securities and Exchange Commission (SEC Nigeria) has introduced a Digital Assets Rulebook and licenses for VASPs, enforcement has lagged, and the CBN is yet to issue a comprehensive crypto framework – despite formally reversing its earlier ban.
The IMF criticized the , especially since many crypto platforms operate without a local presence.
“Fast-growing fintech and crypto sectors require robust risk-based supervision,” the IMF said, adding that enforcement gaps in Nigeria have allowed unlicensed exchanges to continue operating.
“A coordinated and enforceable legal framework for crypto assets is urgently needed,” the IMF urged.
🇳🇬REGULATION | The Central Bank of #Nigeria Lifts the 2021 Banking Restrictions on Cryptocurrency Exchanges and VASPs
In a circular sent to the banks and financial institutions in Nigeria, the Central Bank (CBN) guided that the new regulation supersedes previous instructions on… pic.twitter.com/FDkUDbDTuh
— BitKE (@BitcoinKE) December 23, 2023
The has reversed its previous ban on crypto-related transactions but is yet to provide a comprehensive oversight framework. The IMF urges the CBN to move quickly, including:
Encouragingly, the CBN is reportedly upgrading its , including a roadmap for adopting inflation targeting and improved market transparency — steps critical to maintaining investor confidence in the face of crypto-driven volatility.
🇳🇬REGULATION | Nigeria Sues #Binance for $81.5 Billion in Economic Losses and Unpaid Taxes
The Federal Inland Revenue Service (FIRS) claims that Binance has a ‘significant economic presence’ in Nigeria.https://t.co/1VQGMEuClQ @FIRSNigeria @binance @BinanceAfrica pic.twitter.com/VaSjVCjnlu
— BitKE (@BitcoinKE) February 20, 2025
The report recommends developing a , enhancing KYC/AML oversight for crypto platforms, and aligning policies with global FATF standards.
🇳🇬REGULATION | IMF Now Recommends for Crypto Regulation in Nigeria Similar to Financial Intermediaries
See also
“Staff recommends that global crypto trading platforms be registered or licensed in Nigeria and subject to the same regulatory requirements applicable to financial… pic.twitter.com/Itdd1QIXkl
— BitKE (@BitcoinKE) May 13, 2024
This isn’t just a Nigeria story. Across Africa, crypto has emerged as a tool to bypass state-imposed financial restrictions:
[TECH] STABLECOINS | Private Firms in Kenya Turn to Stablecoins to Pay Foreign Suppliers, 49% Use USDT, Says IMF: The International Monetary Fund (IMF) has revealed that many Kenyan firms are now using crypt.. https://t.co/iZWzG1PM4Y via @BitcoinKE
— Top Kenyan Blogs (@Blogs_Kenya) January 13, 2025
The IMF has consistently advised caution across the continent. In 2022, it warned African countries that unregulated crypto could pose “severe threats to financial and macroeconomic stability.”
However, adoption keeps growing – not just as speculation, but as a .
OPINION | Just Like M-PESA, #Stablecoins’ Real Value Isn’t Speed or Cost – It’s Open Access #Stablecoins are following the same path as mobile money. While they operate on the blockchain, their mission is the same: to provide access . . .https://t.co/lRONQMg3Iu @SafaricomPLC pic.twitter.com/Bvs7ioLl6i
— BitKE (@BitcoinKE) June 12, 2025
Stay tuned to for deeper insights into the evolving Nigerian crypto space.
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