Quidax, the African cryptocurrency exchange, has published The State of Crypto Adoption in Nigeria 2025 report in collaboration with IFS Insights.
The report clarifies how digital currencies have evolved from speculative assets to everyday financial tools for millions of Nigerians.
It also reveals that about 85 per cent of Nigeria’s retail cryptocurrency investors earn below ₦250,000 monthly, placing them within the low-to-mid-income bracket.
The findings change common perceptions that cryptocurrency investors are typically wealthy or driven only by profit. Instead, they paint a picture of a young, resourceful population using digital assets to fill the gaps that traditional financial systems left.
“About 85 per cent of retail cryptocurrency investors in Nigeria report monthly incomes below N250,000, which places them firmly in the low—to mid-income bracket.”- Quidax
Financial exclusion drives crypto adoption
The report highlights that the surge in crypto adoption is not a technological trend but a social and economic response to challenges in the financial system.
Many Nigerians, particularly young adults and freelancers, have turned to digital currencies to overcome the barriers imposed by traditional banking infrastructure.
It further attributes this shift to frustration, such as transaction failures, high international transfer fees exceeding 20 per cent of transaction value, unreliable ATM cards, app downtimes during business hours, and lengthy processing times for local and international transfers.
“Transaction failures without explanation or resolution,” “International transfer fees that can consume 15-20% of transaction value,” “ATM cards that work intermittently at best,” “App downtime during critical business hours,” “Bureaucratic requirements that make simple transactions feel like applying for a visa,” and “Processing times that stretch days for domestic transfers, weeks for international ones.”
Crypto adoption in Nigeria
About 26.3 million Nigerians have used or continue using cryptocurrencies, more than one in eight adults.
This figure is one of the highest adoption rates globally, surpassing some developed markets.
Between July 2022 and June 2023, sub-Saharan Africa accounted for only 2.3 per cent of global crypto transactions, but Nigeria’s contribution to that fraction remains among the continent’s most significant.
Lagos naturally leads adoption, with nearly a quarter of respondents based there, but activity in states like Kaduna, Enugu, Abuja, and Osun underscores how digital finance has spread beyond the country’s economic centres.
Students also comprise 43 per cent of Nigeria’s crypto investor base, a clear indicator of the industry’s youth-driven nature.
Many others are self-employed professionals, freelancers, and small business owners who use crypto to bypass traditional barriers in trade and payments.
“Students comprise 43 per cent of Nigeria’s crypto investor base,” and “81.5% of investors aged between 18 and 34.”
Crypto as Nigeria’s export infrastructure
Developers, designers, writers, and digital entrepreneurs use digital assets to receive full payment value instantly, bypassing foreign exchange, delays, and bank-related transaction rejections.
This new payment infrastructure has made global business more accessible to Nigerians. For small businesses and traders, crypto eliminates the complex processes of international banking, correspondent bank relationships, conversion fees, and heavy documentation, replacing them with peer-to-peer transactions that are fast, transparent, and reliable.
Freelancers and entrepreneurs now participate more efficiently in the global economy, not by circumventing financial rules but by leveraging technology to bridge the gaps legacy systems failed to close.
How young Nigeria embraced financial innovation
Early users were drawn by profit motives, trading Bitcoin, joining airdrops, and speculating on volatile coins.
But within a year or two, many shifted focus from “get-rich-quick” expectations to practical, long-term uses.
One investor described how the motivation to profit led to a realisation that crypto could be a tool for saving, beating inflation, and investing sustainably.
The report identifies three distinct segments among Nigeria’s 26.3 million crypto adopters. Investors, who make up 67.2 per cent of the total, view cryptocurrency as a foundation for long-term growth, not quick profit.
The Traders, representing 14.4 per cent, actively engage in market activities and liquidity provision, often treating crypto trading as a source of income.
About 18.4 per cent of the “pragmatists” use crypto primarily for practical reasons, such as international payments, remittances, and inflation protection.
Geographic and socioeconomic footprint
Lagos remains Nigeria’s crypto capital, accounting for 23.5 per cent of all respondents in the Quidax report. However, Kaduna’s emergence as the leading hub in the North shows that adoption is not confined to the country’s southwest state.
Enugu, Abuja, and Osun also feature primarily, underscoring how digital finance has reached both urban and semi-urban populations.
Crypto in Nigeria has become a nationwide movement driven more by necessity and social networks than institutional promotion.
Students and young professionals dominate this part, with 81.5 per cent of investors aged between 18 and 34.
Men account for roughly 67.7 per cent of investors, though the report highlights vast potential for greater female inclusion in the coming years.
Income data further clarifies the socioeconomic reality of the space: roughly 85 per cent of retail investors earn below ₦250,000 per month, classifying most as low-to-mid-income earners.
Despite limited resources, these individuals are leading one of Africa’s most significant digital finance transformations.
Their adoption reflects not wealth but resourcefulness, a grassroots response to a fragile economic system.
Where Nigerian crypto is headed next
According to Quidax’s findings, 96.2 per cent of investors plan to increase their crypto usage over the next year.
Three critical areas for future growth were identified: easier onboarding for new investors (22.14 per cent), stronger platform security and scam prevention (21.67 per cent), and clearer government support to remove regulatory uncertainty (18.42 per cent).
“A striking 96.2% of investors anticipate increasing their crypto usage in the next year….. Easier Onboarding” (22.14%), “Lower Risk of Losing Money” (21.67%), and “Clearer Government Support”
As digital currencies become more embedded in Nigeria’s financial system, they will likely evolve from an alternative to banking to a foundational part.
With millions already using crypto to transact, save, and invest, Nigeria’s experience could influence how other African countries approach financial inclusion and innovation.