Nigeria processed an estimated $92.1 billion in cryptocurrency transactions between July 2024 and June 2025, maintaining its position as Sub-Saharan Africa’s largest crypto market, according to PricewaterhouseCoopers (PwC).
The figure was published in PwC’s Nigeria Economic Outlook 2026, titled “Turning Macroeconomic Stability into Sustainable Growth”, and shows that Nigeria recorded nearly 3 times the crypto transaction value of South Africa within the same period.
PwC attributed Nigeria’s dominance to a combination of its large population, youthful and digitally savvy users, persistent inflation, and ongoing foreign exchange (FX) access constraints, factors that have pushed individuals and businesses toward cryptocurrencies and stablecoins as alternative financial channels.
The report noted that crypto adoption in Nigeria reflects both economic necessity and a structural shift in financial behaviour, with digital assets increasingly used for value storage, payments, and cross-border settlements.
Bitcoin continues to dominate fiat-to-crypto purchases in Sub-Saharan Africa, accounting for 89 per cent of transactions in Nigeria and 74 per cent in South Africa. PwC said this underscores Bitcoin’s role as a default hedge and entry asset in volatile or constrained financial environments.
Stablecoin usage, however, is structurally higher in Nigeria, signalling reliance on crypto infrastructure as an informal FX market and dollar-substitute channel, particularly in response to FX liquidity challenges.
PwC cautioned that the reported figures reflect only activity on centralised exchanges and exclude peer-to-peer transactions and other informal flows, suggesting that actual crypto volumes in Nigeria may be significantly higher.
Looking ahead, PwC projected that Nigeria is likely to retain its position as the region’s largest crypto market in 2026, driven by FX access pressures, inflation sensitivity, and sustained demand for stablecoins as a store of value and settlement mechanism.
The firm also recalled that Nigeria had earlier processed about $59 billion in crypto transactions, largely powered by young, tech-savvy users, pointing to deepening adoption momentum.
“The rising usage of crypto, especially among Nigeria’s youth, underscores the urgent need to accelerate regulatory cohesion in the near term,” PwC stated.
PwC identified key factors expected to shape Nigeria’s crypto landscape in 2026, including industry adoption challenges, licensing and regulatory frameworks, a structural shift in crypto taxation, capital flow management, and market surveillance.
On regulation, the firm observed that progress remains slow, with only 2 exchanges granted provisional approval so far. This, it said, highlights capacity and sequencing challenges within the regulatory framework. PwC warned that the planned rollout of crypto-asset taxation could outpace supervisory readiness, raising concerns about enforcement without a fully operational licensing regime.
Under the new Tax and Tax Administration Acts, effective from 2026, crypto profits will be treated as income and taxed up to 25 per cent, replacing the previous 10 per cent capital gains tax. PwC said this represents a significant increase in tax burden and compliance complexity for crypto users.
Virtual Asset Service Providers (VASPs) are also expected to face higher reporting and compliance obligations, raising operating costs for licensed platforms and potentially pushing more activity into informal or offshore channels.
On capital flow management, PwC warned that crypto markets could be used to bypass capital controls through unlicensed exchanges, while stablecoin purchases funded by naira deposits could strain bank liquidity. Although regulators have strengthened monitoring of crypto flows and introduced FX pricing bands to curb arbitrage, PwC said market surveillance remains limited by incomplete data coverage.
Beyond crypto, PwC highlighted the expanding role of Nigeria’s digital economy, which now contributes about 19 per cent of GDP, supported by improved mobile and internet penetration and policies such as the Nigeria Startup Act.
The firm said the proposed National Digital Economy and E-Governance Bill 2025, if passed, alongside the operationalisation of the Nigeria AI Strategy launched in 2025, would significantly shape the sector’s trajectory in 2026.
PwC projected that Nigeria’s media and entertainment revenues would reach $4.9 billion in 2026, making it Africa’s fastest-growing market, driven by internet advertising, video games, OTT streaming, and audio content. Investments through initiatives such as the Creative Economy Development Fund are also expected to support growth.
On fiscal reforms, PwC said the full implementation of the Nigeria Tax Act 2025 would transform revenue collection by consolidating multiple taxes into a unified, digital-first system. Mandatory use of the Tax Identification Number (TIN) for bank account operations and corporate transactions is expected to widen the tax net and reduce evasion.
The transition from the Federal Inland Revenue Service (FIRS) to the Nigeria Revenue Service (NRS) is projected to centralise tax collection and target a long-term tax-to-GDP ratio of 18 per cent by 2027, driven by improved compliance rather than higher tax rates.
However, PwC cautioned that meeting the 2026 revenue targets may remain challenging due to shortfalls recorded in 2025.
On national expenditure, the firm noted that electricity and fuel subsidy removals have improved government revenues and fiscal flexibility, resulting in higher FAAC allocations. While part of the gains has been redirected to social safety nets and growth initiatives, partial subsidy reforms, particularly in the power sector, may still weigh on fiscal outcomes.
The proposed 2026 budget places strong emphasis on national security and infrastructure, with security receiving ₦5.41 trillion, representing 9.3 per cent of total spending, while ₦26.08 trillion was allocated to infrastructure and other development priorities.
PwC warned that although inflation is easing, residual price shocks could erode the real value of public spending, requiring tighter prioritisation and targeting.
Overall, PwC concluded that Nigeria’s crypto market is positioned for further growth in 2026, driven by the introduction of a formal regulatory and tax framework, even as enforcement capacity and regulatory coordination remain critical challenges.