Nigeria’s crypto boom sparks need for better market understanding — Cardoso

The Central Bank of Nigeria Governor, Olayemi Cardoso,  has stated that the apex bank is working in partnership with the Securities and Exchange Commission to develop a sustainable regulatory framework for digital currencies in Nigeria.

Speaking on Friday at the CBN Governor’s Annual Lecture Series hosted by Lagos Business School, Cardoso noted that cryptocurrencies, fintech, and blockchain technologies will play a significant role in shaping the future of monetary policy, though the full extent of their impact remains uncertain.

He recalled how Nigeria was thrust into global crypto prominence two years ago when regulators struggled to manage coin exchange markets, with the country ranked among the largest crypto trading hubs worldwide.

“Suddenly, over a period of time, coin exchange became very difficult to protect. Many people, not just youngsters, turned to crypto, and a whole architecture started to evolve,” the economist said.

In many respects, regulators left it alone, and people believed that perhaps it didn’t exist until certain things happened. It became clearer that there was a need to understand the market better.

“We are deeply in collaboration to ensure that all the different regulatory authorities can midwife the process that is sustainable with respect to digital currency.”

On innovation, Cardoso said the apex bank has already embraced digitisation and artificial intelligence (AI) internally, with all approval processes now digitised and a commitment to running a paperless office.

The governor also advised students aspiring to be future leaders to safeguard their credibility, stay the course despite headwinds, and communicate effectively — especially in complex areas like monetary policy.

“The danger in not communicating is that only you know what you are doing. People need to understand the journey, the challenges, and the hope for the future,” he said.

Cardoso maintained that consistent policies and reforms have restored confidence in Nigeria’s economy, with global investors showing renewed appetite.

Nigeria has emerged as one of the leading markets for cryptocurrency adoption globally, driven by a youthful population, high mobile penetration, and a lack of trust in traditional banking systems.

In recent years, the country has seen a surge in peer-to-peer crypto transactions, making it a top trading hub in Africa and one of the most active worldwide.