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 declared.
PwC Nigeria, in its ‘Economic Outsee 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 declared, 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 utilizers.
It also declared 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 declared 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 enattempt 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 exalter activity and excludes peer-to-peer and informal flows.
PwC declared crypto adoption in Nigeria is dominated by young, tech-savvy utilizers, particularly students, adding that self-employed entrepreneurs and traders represent a large share, utilizing crypto for flexibility and business utility.
It further stated that even those in formal employment are increasingly involved, suggesting growing mainstream interest. PwC, however, declared minimal uptake among older and unemployed populations reveal digital assets remain youth-centric.
The PwC report, while stating that the Nigerian crypto market is evolving rapidly, bringing both opportunities and risks, however, declared 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 utilized to evade capital controls by routing funds through unlicensed exalters. 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 declared the Investment and Securities Act (ISA) and Nigeria Tax Administration Act (NTAA) have formalised crypto regulation and taxation to drive greater engagement with compliant players in 2026 and beyond.
PwC emphasised 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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