Nigeria isn’t new to innovation, especially with money.

It is one of the largest adopters of mobile money in Africa and has a huge crypto community. The enthusiasm has always been there, which has greatly aided the broad acceptance of innovation over the years. As crypto use surged, policymakers moved to keep pace, sometimes with strict regulations and other times stepping aside to allow the industry to grow.

Following the regulators’ changing rules,  where does that leave businesses, freelancers, and everyday users who actually need to move money? I say, somewhere in the middle of a live experiment. The country is trying to protect its financial system while allowing for new rails like stablecoins, tokenised assets, and CBDCs. The result is a system that changes fast, rewards people who stay informed, and increasingly favours solutions that combine innovation with compliance.

We’ll together, trace how Nigeria got here, how the rules are shifting, and what that means for safely getting paid, paying others, and cryptocurrency startups.

A quick look back: Nigeria’s digital currency story

By the late 2010s, crypto adoption was becoming hugely popular. Platforms like Binance, Paxful, and Luno held a huge part of the market share. For young Nigerians, especially freelancers tired of waiting days for foreign payments or watching the naira lose value overnight, digital assets became a faster, more reliable alternative.

By 2021, Nigeria ranked second in the world for crypto adoption. While this might have ordinarily been a good thing, the Central Bank of Nigeria (CBN) was worried about money laundering, tax evasion and threats to monetary stability, so it stepped in hard. It banned banks from facilitating crypto transactions, cutting off many startups and exchanges that relied on traditional financial rails.

Yet, even as the crackdown unfolded, Nigeria pushed forward with its own state-backed experiment. In October 2021, the country launched the eNaira. I was Africa’s first central bank digital currency (CBDC). The goal was to offer a safe, regulated digital alternative that could promote financial inclusion and modernise payments. While uptake has been very slow, it showed that Nigeria wasn’t against digital money. It seemed more like the government wanted to be in total control.

The tug-of-war: innovation vs. regulation

I like to describe Nigeria’s digital currency journey as a tussle between innovation and control. On one side, you have a young, tech-savvy population eager to embrace decentralised finance. On the other hand, cautious regulators are trying to manage risks in an already fragile economy. The result is a constant push and pull that has shaped how Nigerians use digital money today.

• Crypto bans and restrictions: In 2021, the Central Bank’s ban on banks supporting crypto transactions significantly impacted exchanges and fintech startups. While peer-to-peer trading kept the crypto economy alive, businesses that relied on bank integrations struggled to stay afloat. For many of these businesses, innovation slowed down because of regulatory roadblocks, not a lack of demand.
• The eNaira experiment: To counter the rise of unregulated digital assets, the government doubled down on its own central bank digital currency. The eNaira was marketed as a safer, government-approved alternative. But despite millions of downloads, adoption has been sluggish. By 2023, less than 1% of Nigerians were active users, a sign that trust and utility are what drive adoption, not availability.
• Global pressure and local realities: Nigeria’s regulatory stance isn’t just shaped at home. International bodies like the IMF and World Bank have pushed for tighter oversight on digital assets to prevent risks such as capital flight and financial crime. Nigeria, already under economic strain, has had to walk a fine line between encouraging innovation and staying compliant with global standards.

This back-and-forth has created uncertainty for businesses and individuals. However, it has also forced Nigerians to turn to stablecoins, fintech workarounds, and alternative platforms to keep the digital economy alive despite regulatory hurdles.

Also read: Comparing USDC vs SWIFT transfers: What you need to know

Where do things stand today?

By late 2023, it became clear that Nigeria’s hardline stance on crypto wasn’t sustainable. Despite restrictions, trading volumes kept rising, peer-to-peer platforms flourished, and freelancers still turned to stablecoins to get paid. The government had to face reality as a complete clampdown wasn’t working.

The tone began to shift. The Securities and Exchange Commission (SEC) announced it was exploring licensing frameworks for exchanges and fintechs. This signalled a new willingness to move away from blanket bans toward structured regulation. Instead of shutting the door completely, regulators defined how players could legally operate in the space.

At the same time, the Central Bank of Nigeria (CBN) started refining its digital currency policies, aiming to build a more inclusive and controlled financial ecosystem. Some of the key areas of focus included:

• Cross-border transactions: With remittances forming a significant part of Nigeria’s economy, the CBN began looking at ways digital currencies could make sending and receiving money cheaper and faster.
• Inclusion of fintech startups: Rather than locking fintechs out, regulators started discussing how startups could plug into Nigeria’s payment infrastructure, bringing innovation back into the fold.
• Stablecoins and tokenised assets: Recognising the popularity of dollar-backed stablecoins like USDT and USDC, the government has been considering frameworks to regulate their use, creating a safer environment for individuals and businesses.

This doesn’t mean Nigeria has fully embraced digital currencies. Instead, it shows a shift in mindset, from outright resistance to cautious acceptance. Regulators are no longer trying to fight innovation head-on but are instead putting guardrails around it. The aim is to ensure that growth happens within a controlled, secure framework.

For everyday Nigerians, this new phase could mean more reliable payment options, less reliance on risky peer-to-peer trading, and greater confidence that trading digital assets doesn’t leave them operating in a legal grey area.

Also read: How to accept payments in USDC as a digital nomad

Why does this matters for freelancers and businesses?

For many Nigerians, especially freelancers, digital currencies have been essential. When international clients struggled to pay via traditional banking routes, receiving USDT, Bitcoin, or other tokens often became the only practical option. Peer-to-peer (P2P) markets filled the gap, creating a parallel economy where freelancers could swap digital assets for naira. This method, however, left users vulnerable to price volatility, scams, and compliance risks.

Businesses haven’t had it any easier. Startups and SMEs wanting to tap into global markets found themselves in a no-man’s land. Holding or accepting crypto was risky, and many were forced to improvise. Some leaned on stablecoins to shield themselves from naira swings, while others turned to fintech platforms offering USD accounts as safer, more reliable workarounds.

This is why Nigeria’s stance matters. With more straightforward rules and proper standards, freelancers and businesses stand to gain a lot.

• More reliable on- and off-ramps: Easier, safer movement between crypto and naira without depending solely on unregulated P2P trades.
• Wider adoption of stable, regulated digital currencies: Giving businesses and individuals a secure way to transact without being exposed to wild market swings.
• Reduced reliance on risky workarounds: With licensed exchanges and fintech integrations, the payment process could become smoother, faster, and more transparent.

In short, what’s at stake is financial confidence. For freelancers, that means getting paid without fear of losing value or falling victim to fraud. For businesses, it means expanding globally with fewer compliance headaches and more predictable cash flow.

What the future might look like

Nigeria is in an interesting place right now. The crypto community is creative, resilient, deeply embedded in the country’s digital economy and shows no signs of slowing down. At the same time, regulators are beginning to acknowledge that outright bans haven’t worked, and that structured, transparent systems are the only sustainable path forward. The result is a future that’s likely to blend innovation with oversight.

Here’s what to expect:

• Stablecoins become more popular: USD-backed stablecoins like USDC could become the sweet spot, offering the stability of the dollar, the efficiency of blockchain, and enough regulatory flexibility to gain mainstream acceptance.
• Clearer rules for fintechs: Licensing, compliance requirements, and regulatory sandboxes may allow startups and platforms to operate more confidently, sparking new payment solutions without fear of abrupt policy reversals.
• Hybrid financial systems: Depending on the context, Nigerians may use a mix of eNaira, stablecoins, and cross-border accounts instead of one dominant solution.

This balancing act between innovation and regulation could position Nigeria as a regional leader in digital finance. This change won’t happen by rejecting crypto, but by integrating it into a safer, more inclusive financial ecosystem.

Also read: Bank transfers vs. crypto transfers: which is safer for international payments?

Where do you go from here?

The key takeaway for freelancers, entrepreneurs, and businesses is adaptability. Payment systems will keep evolving through CBDCs like the eNaira, globally trusted stablecoins, or flexible multi-currency accounts. Those who stay open, informed, and ready to pivot will be best placed to thrive in this shifting landscape.

At its core, the future of money in Nigeria is one where trust, accessibility, and opportunity are the major guiding principles.

These principles also guide us at Grey. That’s why we’re giving you access to borderless accounts and payment tools designed to help you confidently navigate your finances. Create your free Grey account today or download the app to experience a smarter way to move money.

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