Nigeria is gradually losing its position among the world’s leading cryptocurrency markets as other countries build stronger products, attract institutional capital, and provide clearer regulatory pathways.
This is according to the immediate past President of the Stakeholders in Blockchain Association of Nigeria, Obinna Iwuno.
Speaking in an interview with Nairametrics, Iwunoh said countries such as Vietnam, Brazil, and India have now overtaken Nigeria in global crypto relevance, driven largely by innovation and the development of exportable blockchain products.
What Iwunoh is saying
Iwuno explained that Nigeria’s rapid rise to become one of the world’s top crypto-adoption countries was never driven by strong products or institutional participation. Instead, it was fuelled by demographics and economic realities.
- “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.
He noted that Nigeria consistently ranks among the top countries globally for crypto-related online searches, reflecting strong retail interest.
However, this adoption is largely retail driven, unlike 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, he said, explains why Nigeria climbed quickly in adoption metrics but is now being 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.
Regulatory uncertainty scares away capital
The former SiBAN president identified lack of regulatory clarity as a major factor holding the ecosystem back.
He explained that serious investors are unwilling to commit capital to an environment where rules are unclear and licensing frameworks remain incomplete.
According to him, many operators currently hold approvals in principle, which are insufficient to raise capital. Investors, he said, only commit funds to fully licensed entities, not provisional approvals.
He noted that despite the presence of over 50 local crypto exchanges in Nigeria, many have neither been admitted into regulatory sandboxes nor issued full operating licenses.
Iwuno contrasted Nigeria’s approach with South Africa, which has issued over 100 crypto related approvals, and with Kenya and Ghana, which are moving ahead with clearer regulatory frameworks.
Flashback
Nairametrics earlier reported that fintech operators in the country have asked the Central Bank of Nigeria (CBN) to clearly define which cryptocurrency-related activities are permitted for licensed institutions.
- This call comes amid persistent regulatory uncertainty that industry players say is constraining innovation, investment, and broader institutional participation in the crypto ecosystem.
- The concerns are outlined in the CBN’s newly released Fintech Report, published on Monday and based on stakeholder surveys, closed-door workshops, and roundtables held with fintech operators nationwide.
The report shows that while fintechs increasingly recognise the relevance of crypto assets to Nigeria’s financial system, ambiguity around regulation remains one of the biggest friction points limiting responsible participation in the market.
What you should know
Iwuno recently handed over the reins at SiBAN after a single tenure of two years. According to him, the decision not to seek a second term was a deliberate move.
- He said the core objectives that informed his decision to lead the association had largely been achieved within one tenure.
- These include laying a solid institutional and operational foundation, securing legal recognition for SiBAN, establishing governance structures, and building working relationships with regulators and government institutions.
Under his leadership, SiBAN also developed a Code of Ethics, expanded local and international partnerships, and strengthened its credibility and visibility within and outside Nigeria.
