Nigeria has solidified its status as Sub-Saharan Africa’s premier digital asset hub, processing an estimated $92.1 billion in cryptocurrency transactions between July 2024 and June 2025.
According to the PwC Nigeria Economic Outlook 2026, titled “Turning Macroeconomic Stability into Sustainable Growth,” the country’s transaction volume now dwarfs its regional peers, recording nearly three times the value seen in South Africa.
This surge is primarily attributed to persistent inflationary pressures and chronic foreign exchange (FX) illiquidity, which have compelled a youthful, digitally savvy population to adopt crypto and stablecoins as essential financial lifelines and dollar-substitutes.
The report highlights a significant structural shift in financial behavior, noting that Bitcoin continues to anchor the market by accounting for 89 percent of fiat-to-crypto purchases. However, the use of stablecoins has seen a meteoric rise, serving as an informal FX market for businesses and individuals seeking to hedge against naira volatility.
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PwC experts emphasize that while the $92.1 billion figure reflects substantial activity on centralized exchanges, the actual volume is likely significantly higher when accounting for peer-to-peer (P2P) transactions and other informal flows that bypass official tracking.
As the market matures, the Federal Government is moving to formalize the sector through aggressive fiscal reforms. Under the newly effective Tax and Tax Administration Acts of 2026, crypto profits are now treated as personal income, subject to a sliding tax scale of up to 25 percent. This marks a sharp departure from the previous 10 percent capital gains tax, significantly increasing the compliance burden for users. Virtual Asset Service Providers (VASPs) are also facing stringent reporting obligations, a move intended to widen the national tax net but which analysts warn could push activity back into unregulated offshore channels.
Despite the drive for revenue, regulatory cohesion remains a bottleneck for the industry’s full potential. PwC observed that the pace of licensing remains sluggish, with only two exchanges granted provisional approval by the start of 2026. This lag in supervisory readiness raises concerns regarding the effective enforcement of the new tax laws and the management of capital flows. The firm warned that unchecked stablecoin purchases funded by naira deposits could inadvertently drain bank liquidity and complicate the Central Bank’s efforts to maintain monetary stability.
The growth of the crypto market is situated within a broader expansion of Nigeria’s digital economy, which now contributes approximately 19 percent to the National Gross Domestic Product (GDP). Supported by the Nigeria Startup Act and the anticipated National Digital Economy and E-Governance Bill 2025, the sector is evolving alongside emerging investments in Artificial Intelligence and the creative arts. PwC projects that the media and entertainment sectors alone will hit a revenue milestone of $4.9 billion in 2026, further diversifying the nation’s economic base away from traditional oil reliance.
Looking ahead, PwC concludes that Nigeria is poised to retain its regional dominance throughout 2026, provided that the government can harmonize its regulatory and fiscal objectives.
While the removal of fuel and electricity subsidies has granted the government greater fiscal flexibility, the success of the 2026 budget—which prioritizes national security and infrastructure—will depend on the effectiveness of the new Nigeria Revenue Service (NRS). Achieving a long-term tax-to-GDP ratio of 18 percent remains the ultimate target, with the digital asset sector expected to play a pivotal, albeit complex, role in that journey.
