Nigeria is gradually losing its position as one of the largest cryptocurrency markets globally. Other countries are advancing by developing innovative products, securing institutional funding, and implementing better regulatory frameworks.
This observation comes from Obinna Iwuno, the immediate past President of the Blockchain Association of Nigeria.
In an interview with Nairametrics, Iwuno stated that nations like Vietnam, Brazil, and India have now overtaken Nigeria in crypto relevance. He attributed this shift to their focus on innovation and the creation of exportable blockchain products.
- “Nigeria’s youthful population, high unemployment, widespread poverty, and mobile first digital culture made crypto attractive as an alternative economic opportunity,” he said.
According to him, crypto represented hope for many young Nigerians seeking a way out of economic hardship.
Key Insights from Iwuno:
Iwuno explained that Nigeria’s rise in crypto adoption was not driven by robust products or institutional involvement. Instead, it was fueled by demographic factors and economic realities.
He noted that Nigeria consistently ranks as one of the top countries for crypto-related online searches, reflecting strong retail interest. However, this adoption is primarily retail-driven, unlike in the United States, where institutional players dominate transaction volumes.
- “In the US, the volume of one institution can outclass what Nigeria does in a whole year,” he said, adding that over 60% of Nigerian retail participants lack the purchasing power to invest even $100.
This contrast, explains why Nigeria climb quickly in adoption metrics but now overtaken by countries with fewer users. But stronger institutional ecosystems and globally competitive blockchain products.
He stressed that Nigerian youth are not losing interest in crypto, but the ecosystem is evolving faster elsewhere.
- “As innovation accelerates in other markets, adoption naturally shifts toward environments where new solutions are being built,” he said.
Uncertainty in Crypto Regulations Drives Away Capital
A lack of clear regulations is one of the key factors hindering the growth of the ecosystem. According to the former president of SiBAN.
He explained that serious investors are hesitant to commit funds in environments where regulations are unclear, and licensing frameworks remain incomplete.
Currently, many operators are working under provisional approvals, which do not allow them to secure significant investments. Investors prefer to back fully licensed entities rather than those with temporary or incomplete approvals.
The former president also noted that, despite Nigeria having over 50 local crypto exchanges, most are not part of regulatory sandboxes and lack full operating licenses.
He contrasted Nigeria’s situation with South Africa, which has issued over 100 crypto-related licenses, as well as Kenya and Ghana, which are advancing with more favorable regulatory frameworks.
