KPMG has known as on Nigerian {financial} establishments to combine blockchain expertise and type partnerships with cryptocurrency companies, shifting past cautious approaches to harness the alternatives of digital finance.
This suggestion comes as international cryptocurrency adoption rises and Nigerian regulatory our bodies shift towards structured engagement with the sector.
In its March 2025 report, “Crypto Threat and Alternatives in Nigeria: A New Banking Paradigm,“ KPMG examined the affect of the Central Bank of Nigeria’s (CBN) 2021 ban on crypto transactions.
The report, citing knowledge from Chainalysis, revealed that whereas the ban had little impact on curbing cryptocurrency use, it coincided with a major improve in Nigeria’s share of worldwide crypto inflows.
Between July 2023 and June 2024, Sub-Saharan Africa recorded $125 billion in on-chain crypto transactions, with Nigeria alone accounting for $59 billion.
Excessive remittance prices in conventional banking techniques have pushed Nigerians, together with these within the diaspora, towards cryptocurrency for quicker and cheaper cross-border transactions.
Whereas Nigeria’s crypto inflows fluctuated in earlier years, a sturdy 25% rebound in 2024 highlighted the resilience of the sector. Exterior components akin to penalties imposed on banks violating CBN laws and forex devaluations have additionally influenced adoption tendencies.
KPMG emphasised the transformative potential of blockchain expertise for Nigerian banks. By integrating blockchain analytics into compliance frameworks, banks can higher detect illicit actions, enhance operational effectivity, and broaden into new {financial} companies.
“Ahead-thinking banks can place themselves on the forefront of an more and more digital {financial} system by leveraging blockchain expertise,” the report acknowledged. KPMG underscored that such improvements can improve competitiveness within the evolving digital financial system.
In a earlier story by Nairametrics, fraudsters have gotten subtle in relation to crypto transactions.
The yr 2022 recorded the best determine at $54.3 billion, adopted by 2023 ($46.1 billion) and 2024 ($40.9 billion).
