Volatility and risks are the most prominent concerns about crypto among Nigerians

Key takeaways

  • Volatility and risks are the biggest concerns for Nigerians engaging with cryptocurrency, making up 35.7%.
  • Lack of knowledge accounts for 17.5%, highlighting a gap in crypto education and awareness.
  • Difficulty in using apps is the least pressing concern at 6.4%, suggesting that accessibility is not a major barrier.
  • Addressing volatility fears, improving security measures, and expanding financial education could boost confidence in crypto adoption.

Crypto adoption in Nigeria faces some hurdles, with volatility and security risks ranking as the top concerns among users. Knowledge gaps and regulatory uncertainties contribute to hesitation, as users struggle to navigate compliance issues and understand crypto’s mechanics. However, the relatively low concern about app usability suggests that accessibility is not a major barrier. Strengthening consumer protections, fostering education, and clarifying regulations could enhance confidence and drive wider crypto adoption.

Source:

Busha's Cryptocurrency/Digital Assets Adoption Report 2024

Period:

2024
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Stablecoins are the most frequently transacted asset for outbound payments among Nigerian users (38.3%), outpacing bitcoin (27.3%)
  • Stablecoins lead the market, accounting for 38.3% of all crypto sent, highlighting Nigerians’ preference for stability and dollar-backed assets.
  • Bitcoin ranks second at 27.3%, showing it remains a major channel for store-of-value transfers and remittances.
  • Altcoins like SOL, ADA, SHIB, and DOGE (15.4%) attract younger and experimental users but remain secondary to stable assets.
  • Ethereum (10.2%) and BNB (8.9%) maintain moderate transaction volumes, suggesting users favor low-fee and widely accepted tokens for transfers.
Over 40% of surveyed Nigerian crypto users are students
  • Students are the largest crypto-holding group (43.6%), underscoring the youthful nature of Nigeria’s crypto community and their early adoption of digital finance.
  • Entrepreneurs follow closely (25.7%), showing strong participation from self-employed Nigerians, traders, business owners, and hustlers who use crypto for investment and business flexibility.
  • Traditional employees make up 17.4%, indicating growing acceptance of crypto beyond informal or youth circles, even among salary earners.
  • Freelancers and gig workers (5.6%) also feature, reflecting crypto’s role in global online work and cross-border earnings. Unemployed and retired individuals remain a small minority, under 3.5% combined.
Over 60% of surveyed Nigerian crypto traders earn less than $50 per month, with $10–$50 the most common profit range (36%)
  • About 60% of users make less than $50 per month, showing crypto activity is mostly at a small, retail scale.
  • The $10–$50 band (36%) is the single largest group, reflecting frequent, low-value trading or incremental investment returns.
  • Only about 30% of users earn between $50 and $500, suggesting that consistent moderate returns are less common.
  • Less than 3% of users earn above $1,000 per month, confirming that the Nigerian crypto market remains largely retail-driven rather than dominated by professional or institutional traders.
About 44% of Nigerian crypto users mostly send crypto, primarily for investments and payments
  • 56.1% of users mostly send crypto, compared to 43.9% who mostly receive it, showing an active transaction culture.
  • Investing in other platforms or projects leads as the top reason for sending crypto (29.2%), indicating strong speculative and wealth-building motives.
  • Every 1 in 4 users (25.1%) use crypto for daily transactions like bills and subscriptions, showing rising integration into everyday finance.
  • Cross-border payments (7.7%) and donations (4.6%) remain small but notable niches, signaling growing utility beyond trading.
Over 60% of Nigerians use crypto for savings and long-term investing
  • Wealth-building dominates motivation: 45.4% cite “active wealth building” as their primary motive, and an additional 21.8% cite “long-term financial security”.
  • Payments and utility are minor drivers: Only 3.3% report “daily utility” and 2.2% “digital commerce” as their chief motive for using crypto.
  • Hedging and cross-border flows matter: 8.7% use crypto for currency hedging, and 4.1% for cross-border payments, showing a dual role of investment plus international value flows.
  • Nigerian retail users treat crypto like a conventional financial instrument rather than only as a means of payment or speculation.
Over 65% of surveyed Nigerian crypto users transact below ₦50,000; less than 3% move above ₦1 million
  • Nearly two-thirds (67%) of all crypto transactions in Nigeria are below ₦50,000, reflecting widespread use among everyday retail users.
  • The ₦15,000–₦25,000 band (28.2%) is the single largest group, showing consistent, small-scale engagement rather than high-value speculation.
  • Around 25% of users transact between ₦50,000 and ₦250,000, suggesting a growing middle class of more confident, mid-level investors.
  • Less than 3% of users transact above ₦1 million, confirming that Nigeria’s crypto market remains primarily retail-driven, not institutional or high-net-worth.
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