Stablecoin growth in Africa is driven by practical benefits rather than mere hype.
In Nigeria, the adoption and growth of stablecoins have significantly revolutionised foreign remittances and intra-African trade. These digital assets, such as USDT and USDC, have provided a faster, cheaper, and more accessible alternative to traditional financial methods.
For diaspora communities in Nigeria, stablecoins have become a lifeline for sending money home, offering a more efficient solution compared to legacy remittance channels like Western Union, bank wires, or other traditional payment systems[1]. This efficiency extends to aid organisations as well, making international transfers smoother and more cost-effective.
Fintech partnerships, like the collaboration between MoneyGram and the Stellar network, further facilitate streamlined remittance flows by blending cash and digital currencies[1].
In the realm of intra-African trade, Nigeria has positioned stablecoins as a strategic element of its digital economy and financial innovation agenda. The country is the first in Africa to formalize stablecoin regulation under the Investment and Securities Act 2025, creating an enabling environment for startups and enterprises to safely leverage stablecoins for cross-border payments[3].
Nigeria aims to become a "stablecoin hub of the Global South," leveraging these digital assets to facilitate not only remittances but also intra-African trade over the next five years, with Lagos envisioned as a continental digital finance hub[3].
Stablecoins offer advantages that traditional banks lack, such as instant settlement and broader financial access, which are crucial for enhancing intra-African B2B trade corridors[4]. Despite the rise of Nigeria's CBDC, the eNaira, stablecoins currently enjoy much higher adoption due to greater trust and usability among the population[2][3].
The intra-Africa payment platform, developed by PAPSS and supported by the African Union, is expected to integrate cNGN, a live stablecoin pegged to the Nigerian Naira, and eventually support other African currencies or central bank digital currencies (CBDCs)[5].
This transformation is particularly significant in the context of Nigeria’s large, young, tech-savvy population dealing with currency inflation and financial exclusion, making stablecoins a practical and transformative solution[2]. The reduction in remittance costs and increase in transfer speed have benefited both individuals and businesses alike.
Sources:
- Abraham, Zach. (2024). The Rise of Stablecoins in Africa: Opportunities and Challenges. African Business Magazine.
- BBC News. (2024). Stablecoins: The Future of African Trade? BBC Africa.
- Nigerian Government. (2025). Investment and Securities Act 2025. Federal Republic of Nigeria.
- World Bank. (2024). Digital Financial Services in Nigeria: A Progress Report. World Bank Group.
- PAPSS. (2024). The Intra-Africa Payment Platform: Empowering Cross-Border Trade. PAPSS.
- As Nigeria strives to become a "stablecoin hub of the Global South," the adoption and growth of stablecoins, such as USDT and USDC, are being leveraged to improve foreign remittances and intra-African trade.
- The benefits of stablecoins, including faster, cheaper, and more accessible digital payments, have made them an increasingly popular choice among diaspora communities in Nigeria for sending money back home.
- The Nigerian government has positioned stablecoins as a strategic element of its digital economy and financial innovation agenda, regulating their use under the Investment and Securities Act 2025 to enable startups and enterprises to safely leverage them for cross-border payments.
- Partnerships between fintech companies and blockchain networks, like the collaboration between MoneyGram and the Stellar network, are further facilitating streamlined remittance flows by blending cash and digital currencies.
- The reduction in remittance costs and increase in transfer speed have not only benefited individuals but also businesses, as stablecoins offer advantages that traditional banks lack, such as instant settlement and broader financial access.
