Despite lingering regulatory uncertainty, Nigeria processed an estimated $92.1 billion in cryptocurrency transactions between July 2024 and June 2025, reaffirming its position as Sub-Saharan Africa’s largest crypto market, according to PricewaterhouseCoopers (PwC).

The figure, published in PwC’s Nigeria Economic Outlook 2026 titled “Turning Macroeconomic Stability into Sustainable Growth”, shows that Nigeria received nearly three times the crypto transaction value recorded in South Africa over the same period.

PwC attributed Nigeria’s dominance to its large population, youthful and digitally savvy users, persistent inflation, and continued foreign exchange (FX) access constraints, which have pushed many individuals and businesses toward crypto and stablecoins as alternative financial channels.

The report noted that crypto adoption in Nigeria reflects both economic necessity and structural transformation in financial behaviour.

PwC said Bitcoin continues to dominate fiat-to-crypto purchases in Sub-Saharan Africa, accounting for 89 per cent of transactions in Nigeria and 74 per cent in South Africa, underscoring its role as a default hedge and entry asset in volatile or constrained financial environments.

It added that stablecoin usage is structurally higher in Nigeria, signalling reliance on crypto rails as an informal FX market and dollar-substitute channel.

However, PwC cautioned that the data reflects only centralised exchange activity and excludes peer-to-peer transactions and informal flows, suggesting that actual volumes may be significantly higher.

PwC projected that Nigeria is likely to retain its position as the region’s largest crypto market in 2026, driven by FX access challenges, inflation sensitivity, and sustained demand for stablecoins as a store of value and settlement mechanism.

The firm also noted that Nigeria had earlier processed about $59 billion in crypto transactions, largely driven by young, tech-savvy users, highlighting deepening adoption momentum.

“The rising usage of crypto, especially among Nigeria’s youth, underscores the urgent need to accelerate regulatory cohesion in the near term,” the report stated.

PwC identified several key issues that will shape Nigeria’s crypto landscape in 2026, including industry adoption and compliance challenges, licensing and regulatory frameworks, a structural shift in crypto taxation, capital flow management, and market surveillance.

On licensing and regulation, PwC observed that progress remains slow, with only two exchanges granted provisional approval so far.

This, it said, highlights capacity and sequencing challenges within the regulatory framework. The firm warned that the planned rollout of crypto-asset taxation could outpace supervisory readiness, raising concerns about effective enforcement without a fully operational licensing regime.

In terms of taxation, PwC disclosed that the new Tax and Tax Administration Acts, effective from 2026, will treat crypto profits as income taxed up to 25 per cent, replacing the previous 10 per cent capital gains tax.

This represents a significant increase in tax burden and complexity for crypto users. It also noted that Virtual Asset Service Providers (VASPs) will face higher compliance and reporting obligations, raising operating costs for licensed platforms and potentially pushing more activity into informal or offshore channels

Renaissance Capital Africa (Rencap) has named Zenith Bank Plc its top conviction pick among Nigerian banks, ahead of GTCO and AccessCorp, in a fresh research report highlighting the lender’s robust balance sheet and dividend potential despite sector headwinds.

Zenith Bank

The comprehensive review of the Nigerian banking industry notes that Zenith’s current market valuation lags its improving fundamentals, even as the NGX Banking Index posts strong gains recently.

Rencap upgraded Zenith from HOLD to BUY, lifting its target price by 96 per cent based on a lower risk-free rate from falling government bond yields, refined beta estimates, and expectations of cleaner assets post-forybearance resolutions.

Balance Sheet Strength Drives Outlook

Analysts project challenges to earnings growth from anticipated Central Bank of Nigeria (CBN) rate cuts but foresee higher dividend payouts from resolved forbearance and single obligor loan (SOL) exposures alongside rising cash profits.

“Although we expect banks to face challenges in growing earnings… the balance sheet clean-up… will support higher dividend payouts relative to prior years,” the report states, ranking Zenith first, followed by GTCO and AccessCorp.

Key positives include loan write-offs that bolstered asset quality, enabling sustainable growth amid financial system reforms.

Dividend Recovery in Focus

Sector profitability from 2023-2024 was inflated by unrealised foreign exchange gains, which regulations barred from cash dividends, capping payouts despite headline profits.

Zenith historically led payout ratios in 2021-2022 via strong cash generation and capital discipline; Rencap expects a rebound as pressures ease, attracting income-focused investors.

Tier-1 Leadership Reinforced

Zenith Bank recently topped Nigeria’s tier-1 capital rankings for the 16th straight year, per The Banker magazine (Financial Times), affirming its resilience and positioning for long-term value creation.

CBN

• Access Bank Plc
• Fidelity Bank Plc
• First Bank of Nigeria Ltd
• Guaranty Trust Bank (GTBank)
• United Bank for Africa (UBA)
• Zenith Bank Plc

• FCMB (First City Monument Bank) – currently pushing to raise additional capital to secure its international licence.
• Wema Bank
• Standard Chartered Bank (Nigeria)
• Citibank Nigeria
• Stanbic IBTC Bank
• Sterling Bank
• Globus Bank
• Premium Trust Bank