Nigeria’s crypto exchange boom tests who can afford to compete
Nigeria’s domestic crypto exchanges attracted $6.22 billion in inflows despite a shrinking market, as new capital requirements threaten to make it harder for smaller and foreign competitors to challenge established operators.
Nigeria's cryptocurrency market has experienced a decline of 3% from July 2025 to June 2026, yet inflows into domestic exchanges have almost tripled, rising by $4.13 billion to $6.22 billion, according to Chainalysis. This growth is primarily attributed to local exchanges, which now account for 92% of the additional money flowing into cryptocurrency services, with their share of centralised exchange inflows rising to approximately 50%.
Meanwhile, the Nigerian Securities and Exchange Commission (SEC) plans to raise the minimum capital requirement for digital asset exchanges (DAXs) from ₦500 million ($372,000) to ₦2 billion ($1.5 million), giving existing operators more time to comply while requiring new entrants to meet the higher threshold. This regulatory shift could favor established operators, creating a challenge for new entrants who must raise significantly more capital without the existing customer base and trading activity.
Despite the shrinking market, Nigeria remains the second-largest crypto market in sub-Saharan Africa, with $38.1 billion in cryptocurrency activity in the reporting period.
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