Nigeria is strengthening its position as Africa’s most active Web3 market, with stablecoin adoption driving a rapid rebound in startup funding, deeper consumer usage, and growing regulatory recognition.
This is according to the second edition of the Nigeria Web3 Landscape Report 2025 released by Hashed Emergent, a venture capital firm focused on accelerating blockchain and Web3 innovation across Africa and other emerging markets.
The report shows that after a subdued 2024, investment activity in Nigeria’s Web3 ecosystem recovered strongly in 2025, with founders raising $43 million, more than double the $20 million recorded in the previous year.
The recovery was driven largely by stablecoin-focused startups, which attracted significant investor interest as demand grew for blockchain-based payment solutions, remittances, foreign exchange alternatives, and business-to-business settlements.
Finance emerged as the dominant sector, accounting for 89 percent of total funding, equivalent to $38 million, representing a fivefold year-on-year increase.
According to the report, this momentum reflects how Nigerian startups are building practical use cases around stablecoins, including on- and off-ramp services, cross-border transfers, treasury management, and decentralised finance applications.
Stablecoin adoption among Nigerian consumers has accelerated considerably over the past seven years. The report revealed that stablecoin deposits surged by more than 9,000 percent between 2018 and 2025, underscoring how digital dollar-denominated assets are increasingly being used as a hedge against naira volatility and inflation.
Hashed Emergent noted that more than nine out of every 10 users surveyed said they hold stablecoins such as Tether and USD Coin, indicating a shift away from speculative trading toward more utility-driven uses such as savings, payments and remittances.
The report said this rapid uptake has helped establish Nigeria as one of the world’s most important stablecoin markets and the most active crypto economy in Africa.
Despite dropping four places in global crypto adoption rankings in 2025, Nigeria maintained its continental lead. On-chain transaction value rose 56 percent year-on-year to $92 billion, driven by increased participation from both retail users and institutions.
Nigeria’s broader Web3 ecosystem now comprises more than 110 startups building across sectors including finance, infrastructure, gaming, entertainment and creator tools. Since 2020, these ventures have raised more than $170 million, and the ecosystem is estimated to be worth around $700 million.
Beyond finance, infrastructure projects attracted increasing investor interest, while gaming, social applications and creator tools continued to draw smaller but steadily growing levels of capital.
Early-stage activity remained vibrant, with approximately $13 million deployed across pre-seed and seed rounds, supported by incubators and accelerator programmes. While breakthrough exits were still limited, acquisitions and strategic partnerships pointed to an ecosystem that is beginning to mature.
According to the report,a major source of Nigeria’s competitive advantage remains its talent base. The country accounts for about 4 percent of global Web3 developers, the highest share in Africa making it one of the continent’s most significant blockchain talent hubs.
This deep pool of technical talent has supported the rapid emergence of local startups and attracted increasing attention from global investors.
However, the report noted that retaining top talent remains a challenge, as many Nigerian developers continue to work remotely for international firms offering higher pay and broader opportunities.
At the same time, expertise in blockchain security and smart contract auditing is becoming more prominent, creating new career pathways and strengthening local technical capabilities.
The report also highlighted growing enterprise interest in blockchain technology. Businesses are increasingly exploring blockchain-based payment systems, tokenisation and digital identity solutions, while financial institutions and fintech firms are testing distributed ledger infrastructure to improve operational efficiency and reduce costs.
Also:Global B2B stablecoin flows to hit $5trn by 2035
A key milestone in 2025 was the enactment of the Investment and Securities Act (ISA) 2025, signed into law in March, which formally recognises virtual assets and places virtual asset service providers under the oversight of the Securities and Exchange Commission.
The legislation marked a significant step toward integrating digital assets into Nigeria’s formal financial system and was widely seen as a confidence booster for startups and investors.
However, uncertainties remain around implementation. Questions persist regarding licensing requirements, tax treatment, and compliance obligations, particularly around value-added tax, capital gains tax, corporate tax, anti-money laundering rules, and foreign exchange regulations.
Commenting on the report, Tak Lee, CEO and managing partner at Hashed Emergent, said Nigeria continues to play a central role in Africa’s blockchain development.
“While regulatory clarity remains limited, there are clear signs of progress, with increased engagement between stakeholders and regulators. The overall trajectory remains positive.One thing is clear, Nigeria remains an anchor hub for Web3 and blockchain adoption in Africa,” Lee said.
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