Experts unveil Crypto landscape report in Nigeria

The financial services industry in Africa is valued at $165 billion, with payments, banking, and insurance dominating the sector. Consumer demand for digital services has challenged the banking sector to also digitalize its consumer products and services.

Duamentes Crypto Landscape Study stated that Nigeria stands out as a leading country in crypto adoption, boasting the highest rate of crypto ownership among its population. While many people rely on informal financial services and have limited access to formal ones, the growing presence of fintech offers a chance to overcome these hurdles and meet the changing needs of the market, despite cash transactions still being prevalent.

In Nigeria, users have different levels of understanding about cryptocurrencies and blockchain. Well-known coins like BNB, BTC, DOGE, and Shiba are widely recognized. However, users tend to overlook the intricacies of blockchain technology and focus more on its practical applications and financial advantages.

Experts state that Africa’s digital economy is rapidly expanding, with current estimates at $115 billion and projected growth to $712 billion by 2050. The digital opportunity in Africa is focused in Nigeria, South Africa, Egypt, and Kenya, which together account for approximately half of the region’s vital digital statistics. This growth is driven by expanding economies, a youthful and tech-savvy population, and improved digital accessibility.

According to Dr. Babatunde O. Obrimah, COO of the FinTech Association of Nigeria, digital adoption in Africa is soaring, surpassing other regions. Projections suggest that by 2025, one out of every six internet users worldwide will be in Africa, with around one in three new mobile subscribers coming from sub-Saharan Africa.

“At Duamentes, we collaborate with numerous FinTech companies, and when we conduct country scoring, Nigeria consistently appears on our shortlists of companies to expand due to rapid adoption and market potential” shared Ksenia Sternina, Managing Partner at Duamentes Global Alliance.

The Duamentes report uncovered diverse views on cryptocurrency trading in Nigeria. For some, it’s a serious financial pursuit, while others view it as leisure or entertainment rather than a main income source. According to the Duamentes Global Crypto Landscape study, Nigerian crypto enthusiasts often turn to social media platforms like X or WhatsApp groups. X particularly stands out as a preferred platform for accessing crypto news and updates, playing a central role in shaping crypto discussions.

According to Olubunmi Fabanwo, BDM at Banks & Blockchain, addressing the gap in blockchain education is critical in Nigeria. The complexity of blockchain requires understanding to unlock opportunities and protect against scam projects.

Regulatory changes from the Central Bank of Nigeria (CBN) are imminent in 2024, with Nigerian FinTechs anticipating them after a 277% surge in financial losses in 2023. Dr. Babatunde O. Obrimah notes that recent blockchain regulations in Nigeria address identity management and supply chain challenges, leading fintech companies to explore blockchain solutions such as tokenizing properties and developing stable coins.

However, according to Adeshina Adewumi, CEO at Trade Lenda, Nigeria remains one of the most promising markets in Africa, and scaling here opens doors to similar demographics across the continent. Stakeholder support follows an understanding of the business model while emerging regulations across Africa aim to safeguard users. In the past decade, Africa has had seven liquidity events over $50 million and produced 11 unicorns in six years, with five from Nigeria. Dara Ahmed from Interswitch Group notes Nigeria’s appeal to international fintechs due to its large market, supportive regulations, and tech-savvy population. Recent improvements and increased investor interest make Nigeria’s FinTech scene promising.

Babatunde Akin-Moses, CEO at Sycamore, highlights the benefits of opening businesses in Nigeria, citing its growing market, ample talent pool, and widespread payment technology adoption. Investors should tailor their strategies accordingly, considering market nuances and collaborating with local incubators for valuable insights. Read more here.

DUAMENTES is a Global Growth & Strategy Alliance that harnesses market insights, propels sustainable scaling, and boosts revenue streams. Contact: welcome@duamentes.com