Naira Depreciation: How Currency Collapse Affects Crypto and DeFi in Nigeria
When the naira depreciation, the steady loss of value in Nigeria’s official currency, driven by inflation, fuel subsidies, and foreign exchange mismanagement. It’s not just an economic headline—it’s a daily survival issue for millions. Since 2023, the naira has lost over 70% of its value against the dollar. People can’t buy groceries, pay rent, or save for emergencies with cash. So they turn to something else: Bitcoin, USDT, and DeFi apps that don’t need a bank.
This isn’t just about avoiding inflation. It’s about access. When banks freeze accounts, limit withdrawals, or refuse to process dollar transactions, crypto becomes the only way to send money to family abroad or buy essentials online. Nigerian crypto, the growing use of digital assets as a financial alternative in Nigeria. Also known as crypto remittances, it’s how people bypass broken systems. Platforms like Binance P2P and Paxful exploded in usage because they let users trade naira for stablecoins in minutes. And once you have USDT, you can lend it on Aave, earn yield on Curve, or swap it for other tokens—all without a government approving your transaction.
DeFi Nigeria, the rise of decentralized finance tools used by Nigerians to store, grow, and move value outside the traditional banking system. You won’t find big banks promoting this. But you’ll see it in Lagos markets, where vendors accept USDT for phone airtime. You’ll hear it in university dorms, where students use yield farms to pay tuition. And you’ll feel it in the way people talk about their savings—not in naira, but in USDT balances.
The government doesn’t like it. They’ve banned crypto transactions through banks. They’ve threatened fines. But people keep using it. Why? Because the naira keeps falling. Every week, the exchange rate changes. Every month, prices jump. And every day, someone finds a new way to use crypto to stay ahead.
What you’ll find below are real stories and deep dives into how Nigerians are using crypto to survive currency collapse. From P2P trading tricks to DeFi strategies that work offline, these posts show you exactly how it’s done—not what regulators say, but what people actually do.
