IMF Warns Nigeria's $59B Stablecoin Inflows Could Weaken Naira Demand, Flags Policy Risk

According to the IMF report released June 16, Nigeria drew $59 billion in crypto inflows over the past 12 months, capturing roughly 60% of sub-Saharan African stablecoin traffic. The central bank warned that widespread adoption of U.S. dollar-pegged stablecoins could displace the local naira and weaken monetary policy levers.

High remittance costs averaging 9% compared to a 6% global average, combined with naira volatility, have driven businesses and households toward stablecoins for cross-border transfers and value storage. However, migrating transactions to private digital wallets complicates regulatory oversight and raises risks of illicit financial flows.