In Nigeria, digital currencies are more than a novelty. Over 25 million Nigerians are turning to crypto, with stablecoins, in particular, leading a shift in how people send, store, and spend money. From peer-to-peer remittances to cross-border business payments, stablecoins like USDT are becoming staples of everyday transactions.
Yet, despite this adoption, venture capital (VC) funding is drying up. According to a report by Hashed Emergent, an India-based Web3 VC firm, surveying the Nigerian Web3 landscape, startups in the sector—ventures founded, owned, and operated by local founders—raised just $20 million in 2024, down slightly from $22 million in the previous year.
Across other sectors, there was a funding decline; African startups raised $2.2 billion in 2024, declining by 25% from 2023. Still, the decline seen for Nigerian Web3 startups regressed to a level not seen since 2021.
The dip comes even as activity in the market grows, highlighting a disconnect between local demand and global investor confidence.
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