IMF Presses Nigeria To Hold Rates, Enforce Crypto Regulation

The assessment comes as 40% of Nigerians already use cryptocurrency platforms for cross-border payments, nearly four times above the global average of 11%, according to data from Thunes and Juniper Research.  

"Monetary policy must remain tight for longer than previously expected given inflationary pressures from the war in the Middle East and a global risk-off environment," the Fund wrote in its annual economic health assessment of Nigeria, published 9 Jun.  

Nigeria's central bank held its benchmark rate at 26.5% at its most recent meeting. The IMF forecasts annual inflation to average 16% in 2026, against a current reading of 15.7%, and projects economic growth of 4.1% this year rising to 4.3% in 2027. 

Beyond the rate call, the report noted the "importance of further strengthening supervision and bringing stablecoin and other crypto-asset activities into the regulatory perimeter." 

Crypto adoption is high

According to Chainalysis data cited in a separate IMF country paper published in July 2025, Nigeria recorded $59bn in crypto transactions between July 2023 and June 2024, ranking alongside India and Indonesia as one of the three largest crypto markets by adoption. 

The elevated adoption is closely tied to Nigeria's macroeconomic environment. Persistent volatility in the country's currency, the naira, and restricted access to foreign exchange have made crypto a functional alternative for many users. In particular, small businesses and individuals shut out of the formal foreign exchange market have turned to cryptocurrencies in response.  

The digital fluency in Nigeria builds on a track record of implementing digital payments' infrastructure. In 2021, the Central Bank of Nigeria (CBN) became a frontrunner in central bank digital currency (CBDC) development, launching the eNaira to reduce cash transaction costs via mobile payments. The eNaira's implementation was ultimately unsuccessful, with 98.5% of wallets left unused, according to IMF research. 

Regulatory whiplash 

Against the backdrop of surging private crypto use, Nigerian authorities have moved through several regulatory phases in rapid succession. 

The CBN initially barred banks from serving crypto exchanges via a circular issued in February 2021, a position that was revised in December 2023 to permit accounts for certain licenced firms. In 2024, authorities shut down several unlicensed global platforms after acknowledging that approximately $26bn in transactions had passed through exchanges they were unable to properly identify. 

Peer-to-peer crypto transactions were banned in the same year, with authorities citing currency speculation and money-laundering risks.

The legislative framework that restricted cryptocurrency use has since been overhauled. President Bola Tinubu signed the Investments and Securities Act (ISA) in March 2025, formally classifying digital assets as securities and placing all exchanges, wallet providers and custodians under regulatory oversight. Two platforms, Busha and Quidax, have received provisional authorization to operate in the country. 

The IMF's recommendations push for tighter enforcement of this still-nascent framework. In the July 2025 IMF report, the organisation identified the use of cryptocurrency for cross-border payments in Nigeria while bypassing capital control posed a “significant risk” for criminal activity. They also noted that unregulated use of the cryptocurrency could pose heightened volatility and instability for the naira.