Nigerians abroad are sending money home in digital dollars to avoid the fees
Sending $200 through a traditional service costs about $17. Stablecoin services charge between 0.5% and 2%, and Nigeria now accounts for most of sub-Saharan Africa's inflows.
Lagos — A growing share of the money Nigerians abroad send home is travelling as stablecoins, digital tokens pegged to the US dollar, because they are much cheaper than bank and money-transfer services, Daba Finance reports.
The price gap
Sending $200 to sub-Saharan Africa through traditional channels cost an average of 8.46% in the third quarter of 2025, or about $17. Services that move the money as stablecoins charge between 0.5% and 2%.
Nigeria has become the centre of this trade on the continent. The International Monetary Fund estimates that the country accounts for about 60% of sub-Saharan Africa's stablecoin inflows since 2019. The analytics firm Chainalysis ranks Nigeria third in the world on its 2026 index of crypto adoption, and puts the value of digital currency received in the country at more than $92.1 billion between July 2024 and June 2025.
Diaspora remittances to Nigeria are expected to reach about $1 billion a month by the end of 2026.
The last mile
The difficulty comes at the end. Turning stablecoins into naira can lead to bank accounts being flagged, and the exchange rate offered can shift from hour to hour.
Regulation is catching up. Under the Investments and Securities Act of 2025, firms that handle virtual assets come under the Securities and Exchange Commission and must register and submit to closer monitoring.
The central bank's worry
In a report in June, the IMF warned of "digital dollarisation": if people hold and spend dollar tokens instead of naira, the central bank has less control over money in the economy. The fund added that the shift is unlikely to reverse.
This report is based on reporting by Daba Finance, via AllAfrica.
