Nigeria’s Stablecoin Surge Draws IMF Praise and Warning

Nigeria has become sub-Saharan Africa’s largest stablecoin market, accounting for 60% of regional inflows since 2019 and recording $59 billion in crypto inflows between July 2023 and June 2024. Stablecoins such as USDT are increasingly used by households and small businesses to cut remittance costs, make payments, and hedge against inflation and foreign exchange shortages. While the IMF highlighted the benefits for financial inclusion, it warned that growing adoption could accelerate dollarization, weaken demand for the naira, and create regulatory risks. The IMF is urging stronger oversight, licensing, and payment infrastructure reforms.