Nigeria’s once-fast-rising cryptocurrency market is now losing its competitive edge on the global stage as other emerging economies outpace it in innovation, institutional engagement and regulatory clarity.
This warning comes from Obinna Iwuno, the immediate past President of the Stakeholders in Blockchain Association of Nigeria (SiBAN), in a detailed interview with Nairametrics.
Shift in Global Crypto RelevanceIwuno said that although Nigeria was among the top countries in the world for cryptocurrency adoption a few years ago, that position is now under threat as nations such as Vietnam, Brazil, and India are accelerating ahead.
According to him, these countries are not just seeing high user activity but are becoming centres for the development of exportable blockchain products and attracting institutional capital—factors crucial to long-term market strength.
He explained that Nigeria’s initial prominence in global adoption indices was largely driven by demographic and economic factors rather than structural market strengths. “Nigeria’s youthful population, high unemployment, widespread poverty, and mobile-first digital culture made crypto attractive as an alternative economic opportunity,” Iwuno said, noting that young Nigerians turned to digital assets as both a survival strategy and a potential path out of financial hardship.
However, this retail-driven adoption lacks the backing of deep institutional participation, with many Nigerian crypto investors unable to commit significant capital. In comparison, Iwuno pointed out that just a single institutional investor in markets like the United States can dwarf Nigeria’s total annual transactional volumes.
Regulatory Uncertainty as a Key BarrierA central theme of Iwuno’s critique was Nigeria’s lack of clear regulatory pathways for crypto businesses and investors.
He argued that regulatory ambiguity has discouraged serious capital inflows and slowed the development of sophisticated ecosystem players. “Serious investors are unwilling to commit capital to an environment where rules are unclear and licensing frameworks remain incomplete,” he said.
Despite having over 50 local crypto exchanges, Iwuno noted that many operate with only approvals in principle rather than full licences, which are essential for attracting investment.
This has put Nigeria at a disadvantage compared with other African countries such as South Africa, which has issued more than 100 crypto-related regulatory approvals, as well as Kenya and Ghana, which are moving faster on establishing coherent frameworks.
Experts have long warned that regulatory gridlock and hesitancy to finalise licensing regimes are key factors holding back Nigeria’s market issues that extend beyond crypto into tax enforcement and fintech integration as a whole.
Recent reporting indicates that stalled licensing, pending tax rules, and compliance pressures could further push users toward informal channels like peer-to-peer trading, undermining efforts to build a transparent and robust financial ecosystem.
A Retail Base, but Innovation Moves ElsewhereWhile acknowledging that Nigerian crypto enthusiasm remains strong among youth and retail participants, Iwuno emphasized that innovation is now shifting to markets where developers and entrepreneurs are building scalable blockchain products and where regulatory clarity fosters business growth.
“As innovation accelerates in other markets, adoption naturally shifts toward environments where new solutions are being built,” he said.
His comments highlight a broader trend in the digital asset space: adoption alone is no longer enough. To maintain global relevance, markets need a combination of user engagement, institutional investment, clear regulation, and local product innovation.
Looking AheadIn closing, Iwuno reflected on his tenure at SiBAN, noting efforts to lay institutional foundations, secure legal recognition for the association, and build stronger relationships with regulators and government agencies.
Yet, he stressed that Nigeria must accelerate reforms and clarify regulatory pathways if it hopes to reclaim its place among the leading crypto markets of the world.
As global competition intensifies and emerging markets chart new courses for digital finance, Nigeria’s crypto ecosystem stands at a crossroads its future shaped not just by enthusiasm, but by the strength of its institutions and the clarity of its policies.
Image Credit: Nairametrics
Source : Nairametrics
