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The Nigerian cryptocurrency sector is fast-evolving, and government measures and state investments have also realized significant contributions, especially covering an increasing number of key players. In this context, this paper estimates the status comprehensive sum of the current state of the Nigerian cryptocurrency market, inclusive of measures adopted by the government, regulatory environment, main investments, and players.
In December 2023, the Central Bank of Nigeria (CBN) lifted a ban that had previously prohibited local banks from dealing with companies involved in cryptocurrencies. It is part of encouraging the use of digital currencies in this fast-growing market. The new directive comes in the wake of the lender issuing an order in 2021 that forced financial entities to block access to cryptocurrency transactions in a manner that pushed users into peer-to-peer platforms.
In May 2023, the Nigerian government approved a national blockchain policy. This event occurred after the memorandum delivered by the government of Orange, Isa Ali Ibrahim, the Minister of Communications and Digital Economy propounding a national blockchain policy to aid in driving the recovery of Nigeria's economy via innovation through blockchain technology.
The Nigerian cryptocurrency regulatory environment remains absolutely complex and highly dynamic. As it stands, the Nigerian legislation is to provide for uncertainty in the tax treatment of any form of virtual currency transactions. In the same vein, the Central Bank of Nigeria has equally prohibited all financial institutions, including the banks, from conducting or transacting in cryptocurrencies because of the anonymous nature and lack of any internationally acceptable regulation for its operation.
Another instance would be that of the Nigerian Securities and Exchange Commission (SEC), which took some sort of initiative in controlling cryptocurrency investments but chose to classify them as securities transactions. Both acknowledge the risks present in the sector of digital assets, but little of the specifics are aware of how the regulatory frameworks will be designed.
Central Bank of Nigeria: CBN is arguably holding a very crucial position in defining the regulatory landscape for cryptocurrencies, centered particularly around financial stability and consumer protection.
Nigerian Securities and Exchange Commission: SEC, on the other hand, engages in regulation over cryptocurrency investments to make those investments that accord with the securities laws being made.
Quite a few associations regulate and implement legislation, guidelines, and standards in the cryptocurrency market in general in Nigeria.
Players in Blockchain Association of Nigeria, SiBAN
Cryptocurrency Investors and Trade Association of Nigeria
Blockchain Nigeria Group
Nigeria's Blockchain Technology Association
Pillow: Nigerian digital assets investment platform Pillow raised $18 million in Series A funding in October 2022, to create more pathways to digital assets in emerging markets. With existence since 2021, Pillow has products as simple as crypto investing and saving and has more than 75,000 users in over 60 countries. The company is targeted at expanding in the regions of Africa and Southeast Asia.
In 2021, Chekkit Technologies Corp received an investment from Japan Strategic Capital Co. Ltd. Chekkit Technologies Corp is an African-Nigerian anti-counterfeiting solution company that uses blockchain technology to address the Pharmaceutical and FMCG marketplace. The company deploys techniques through smartphone scanning to provide authenticity. This, in turn, provides a probability for the manufacturers to have insights from the customer-related data. The company is setting out to attract the counterfeit challenge in other markets outside Nigeria.
Key Players
The following are the market leaders in Nigeria within the industry:
• Nestcoin
• Zone (formerly Appzone Group)
• Mara Crypto Wallet (Coinmara.com)
• Kite Financial
• Buycoins (now Helicarrier)
• AFRIDEX Techlabs Limited
• swap.ng
• Bitpaya
• Alkebulan Technology Company
• Guava Ledger
• Vella Finance
• Inn-vest Africa
• Fluidcoins
• Muna Wallet
• First Kudi
• Global Asset Network
• Vibra
• Bitokun Labs
• BitGifty
• Cassava Network
• CoinForBarter
• Busha
• Vorem Crypto
• Crunch Network
• Paychant
• Koinsandkash
• Paylot
• ProsperaVest
• Coinprofile
• Calculux Finance
• Shrink Token Team
• Coinazer
The Nigeria Cryptocurrency market is forecast to reach USD 52 million by. The Nigerian cryptocurrency market is in a state of toying: the government is changing initiatives; major regulations are being amended; and there are trembling investments in the sector and the key industry players. Of particular importance is the fact that amid constant growth, dynamism, and several possibilities for innovation and economic development, many opportunities still survive. The majority of the future will depend on how regulatory authorities and associations work to lay a very clear and supportive regulatory framework for the use of cryptocurrencies in Nigeria.
