Wednesday, January 21, 2026 - Despite regulatory uncertainty, Nigeria dominates sub-Saharan Africa (SSA’s) crypto flows, processing $92.1 billion in crypto transactions between July 2024 and June 2025, a report by PwC Nigeria has said.
PwC Nigeria, in its ‘Economic Outlook 2026’ released last
week, noted that the Nigerian crypto market is positioned to grow further this
year, primarily driven by the implementation of a new, formal regulatory and
tax framework.
The report said, for instance, that the new Tax and
Tax-Administration Acts, effective from 2026, will treat crypto profits as
income taxed up to 25 per cent, replacing the previous 10 per cent
capital-gains tax effectively raising tax burden and complexity for users.
It also said Virtual Asset Service Provider (VASPs) face
rising compliance and reporting obligations in 2026, increasing operating costs
for licensed platforms while potentially pushing unlicensed activity further
into informal and offshore channels.
“Nigeria is likely to remain SSA’s largest crypto market in
2026, with usage sustained by FX access constraints, inflation sensitivity, and
continued demand for stablecoins as a practical store of value and settlement
rail,” the PwC report projected.
The report stated that Nigeria received over $92.1
billion in crypto value, nearly three times South Africa, reflecting its scale,
youthful digital adoption, and persistent inflation and FX access constraints
that continue to drive crypto and stablecoin usage as financial alternatives.
Giving more details, PwC Nigeria said bitcoin dominated fiat
crypto purchases in SSA, accounting for 89 per cent in Nigeria and 74 per cent
in South Africa, underscoring its role as a default hedge and entry asset in
volatile or constrained financial environments.
It also stated that stablecoin usage is structurally higher
in Nigeria, signalling reliance on crypto rails as an informal FX and
dollar-substitute channel, though the data reflects only centralised exchange
activity and excludes peer-to-peer and informal flows.
PwC said crypto adoption in Nigeria is dominated by young,
tech-savvy users, particularly students, adding that self-employed
entrepreneurs and traders represent a large share, using crypto for flexibility
and business utility.
It further stated that even those in formal employment are
increasingly involved, suggesting growing mainstream interest. PwC, however,
said minimal uptake among older and unemployed populations show digital assets
remain youth-centric.
The PwC report, while stating that the Nigerian crypto
market is evolving rapidly, bringing both opportunities and risks, however,
said the rising usage of crypto, especially among Nigeria’s youth requires
acceleration of regulatory cohesion in the near term.
For instance, crypto markets, according to the report, can
be used to evade capital controls by routing funds through unlicensed
exchanges. Stablecoin purchases funded from naira deposits can also drain bank
liquidity.
“Adoption poses risks including capital outflows, currency
speculation, illicit finance, and fraud,” the report stated.
However, it said the Investment and Securities Act
(ISA) and Nigeria Tax Administration Act (NTAA) have formalized crypto
regulation and taxation to drive greater engagement with compliant players in
2026 and beyond.
PwC emphasized that regulators have strengthened monitoring
of crypto inflows and outflows and introduced FX pricing bands to deter
arbitrage, although market surveillance remains constrained by incomplete data
coverage.
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