Despite crypto dominance, Nigeria businesses missed out on crypto payment adoption in 2024

In 2024, the global cryptocurrency payment ecosystem saw a significant shift, with South Africa emerging as a leader in Africa and securing a position among the top 10 countries for businesses accepting crypto payments. this was according to an NFTEvening and Storible study.

The study, conducted between February 28 and March 7, 2025, highlighted that 12,834 merchants worldwide accepted crypto payments, a 50% increase from 2023, with South Africa boasting 584 locations, far ahead of other African nations. Conversely, Nigeria, despite its historical prominence in crypto adoption, notably missed out on this ranking, both globally and within Africa.

This divergence underscores a complex interplay of regulatory environments, economic conditions, and business strategies, particularly why Nigeria’s strong P2P crypto adoption, as per Chainalysis, did not translate to widespread business adoption of crypto payment options.

Nigeria’s regulatory stance on cryptocurrencies has been marked by uncertainty and restriction, impacting business adoption. In 2021, the Central Bank of Nigeria (CBN) banned banks from facilitating crypto transactions, pushing activity into P2P channels, which fuelled individual adoption but stifled business integration.

Although the ban was lifted in December 2023, and by 2024, the CBN and Securities and Exchange Commission (SEC) introduced guidelines for virtual asset service providers (VASPs), the regulatory landscape remained fragmented, with overlapping roles creating confusion. This uncertainty likely deterred businesses who were worried by future changes or compliance costs. One such fears was the requirement for exchanges to maintain a minimum capital of ₦500 million ($553,000) and collect bank verification numbers.

In contrast, South Africa adopted a progressive approach, classifying crypto as a financial product since 2022, with the Financial Sector Conduct Authority (FSCA) requiring exchanges to obtain licenses by 2023. This clarity provided a stable environment, encouraging businesses to integrate crypto payments without fear of sudden crackdowns, aligning with the study’s finding that 40.7% of merchants value faster, borderless transactions.

P2P crypto adoption vs. business use: a disconnect

Chainalysis’ 2024 Geography of Cryptocurrency Report ranked Nigeria second globally in crypto adoption, with $59 billion in transactions between July 2023 and June 2024, driven by P2P trading. This adoption was fuelled by economic necessities, with 33% of Nigerians investing in crypto to hedge against the naira’s depreciation, which hit record lows in 2024, and for remittances. The BBC highlighted individuals using Bitcoin to bypass foreign currency restrictions, with some reporting 50x returns on investments.

However, this focus on investment and P2P trading did not translate to businesses accepting crypto payments. The evidence suggests Nigerians primarily use crypto as a store of value or for international transfers, not for purchasing goods and services locally. This is evident from reports indicating crypto’s use for remittances and trade with countries like China rather than everyday consumer transactions.

The NFTEvening study noted that 29.8% of businesses globally cited customer demand as a driver, but in Nigeria, with customers holding crypto for investment, demand for crypto payments at local businesses was likely low, reducing the incentive for adoption.

Nigeria’s economic challenges, including high inflation (over 30% in 2024) and a plummeting naira, drove individual crypto use, but businesses faced different pressures. The country’s internet penetration rate of 35.5% and financial inclusion rate of 64.1% lagged behind South Africa’s 70% internet penetration, limiting digital infrastructure for businesses to integrate crypto payments.

Moreover, mobile money platforms like OPay and PalmPay, widely used and integrated with banks, provided a convenient alternative, competing with crypto.

In contrast, South Africa’s higher GDP per capita ($6,766 vs. Nigeria’s $2,430) and developed fintech ecosystem supported businesses in adopting crypto. This is especially so for international trade, where 40.7% of merchants globally valued borderless payments. The study reported 88% of businesses saw revenue increases after accepting crypto, a statistic likely resonating in South Africa’s 584 locations, compared to Nigeria’s apparent lower figures, given its absence from the top 10.

Technical barriers further hindered Nigerian businesses. Integrating crypto payments requires expertise, and with payment processors like Cryptopay.ng and BitPay available, businesses still face costs and complexities. An X post from April 2021 noted a Nigerian hotel as the first to accept Bitcoin, but such instances remained rare, suggesting low adoption by businesses. Customer demand, crucial per the study, was likely low, as Nigerians preferred spending naira or mobile money for local transactions, given crypto’s investment focus.

The comparison with South Africa reveals Nigeria’s missed opportunity. South Africa’s regulatory clarity, higher international trade, and better infrastructure enabled crypto-accepting businesses, while Nigeria’s regulatory uncertainty, investment-focused crypto use, and competition from mobile money resulted in fewer adoptions.

This gap highlights Nigeria’s potential to catch up by addressing regulatory inconsistencies, enhancing digital infrastructure, and educating businesses on crypto benefits, especially as global adoption surges, with the NFTEvening study projecting continued growth.

Ultimately, Nigeria’s strong P2P crypto adoption, driven by economic necessity, did not translate to business payment adoption due to regulatory hurdles, differing use cases, infrastructure competition, and low customer demand for spending crypto locally. South Africa’s success offers a blueprint, but Nigeria must bridge this gap to reclaim its crypto leadership.