Nigeria Named Africa’s Most Active Web3 Market – Report

…Captures 80+ Startups, $130M Raised, 3% of Global Web3 Developers

A new report has positioned Nigeria as Africa’s most active web3 market, shaped by its fast-growing developer base, consistent grassroots innovation, and increasing integration of blockchain technology in both financial and public sector systems.

This was disclosed in a newly released inaugural edition of the “Nigeria Web3 Landscape” report by the Hashed Emergent, the venture capital firm accelerating web3 adoption in Africa and other emerging markets. The report offers a comprehensive view of the country’s startup ecosystem, developer activity, consumer and government adoption, and regulatory outlook—drawing on ecosystem interviews, primary research, and platform data.

Web3 refers to the next generation of the internet, aiming for a more decentralized, user-centric, and secure web experience. It’s built on blockchain technology, allowing for greater user ownership of data and digital assets, and peer-to-peer transactions.

Speaking on this, the CEO and Managing Partner at Hashed Emergent, Tak Lee said “Nigeria’s momentum in web3 adoption will not only shape the future of digital innovation locally but also serve as a catalyst, leapfrogging Africa to the forefront of the global web3 economy.”

“As the country continues to build on a strong foundation of entrepreneurial resilience and technical talent, it is well-positioned to lead Africa’s charge into the global web3 economy.”

A Growing, Early-Stage Ecosystem Anchored by Builders

According to the Nigeria Web3 Landscape Report 2024, over 80 web3 startups founded by Nigerians have collectively raised more than $130 million to date. In 2024 alone, startups raised a total of $20 million, largely concentrated in infrastructure and financial use cases.

Unlike previous cycles dominated by large rounds, deal activity in 2024 was early-stage and driven primarily by ecosystem grants and Layer 1/Layer 2 program support. Infrastructure startups led all sectors with $11 million in funding, followed by finance at $7 million—up from $2 million the previous year. Stablecoins, in particular, saw rising adoption across cross-border payments and inflation-resilient financial tools.

The report notes a funding dip in the entertainment and gaming sectors, which fell to $2 million in 2024 from $17 million the previous year. However, builder interest remains active in SocialFi and Gaming/NFT projects, even as capital flows consolidate around foundational infrastructure.

Developer Activity is Nigeria’s Competitive Advantage

Nigeria’s developer ecosystem is one of the country’s strongest growth signals. In 2024, the country recorded a 28% year-on-year increase, reaching 1.1 million total developers. Nigeria contributed 4% of all global new Web3 developers—the highest from any country in Africa.

86% of Nigerian Web3 developers are under the age of 27, and over half entered the ecosystem in the past 12 months. Most entered through community-led programs like Web3bridge, SuperteamNG, Web3Ladies, and bootcamps hosted by ecosystems such as Solana, Base, and Starknet.

Employment remains fluid: Only 15% of developers report full-time web3 roles, while 41% identify as freelancers. 45% of Nigerian web3 developers are paid in stablecoins, while 31% receive ETH, BTC, or SOL. Compensation gaps relative to global peers remain, but the report notes rising exposure to international roles, bounty programs, and founder tracks.

Onchain Adoption Expands from Wallets to Public Infrastructure

The Nigeria Web3 Landscape Report highlights a shift in how adoption is unfolding. Crypto use in Nigeria is no longer limited to retail trading or savings. It’s moving deeper into public infrastructure, where blockchain is being used to solve system-level problems.

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In 2024, Nigeria ranked #2 globally for crypto adoption (Chainalysis), with $59 billion in crypto value received—$24 billion of that in stablecoins. Stablecoin trading has overtaken Bitcoin trading on centralized exchanges, reflecting changing behaviour: for many, crypto isn’t speculative—it’s practical. It’s how people hedge against inflation, send money, and make real-world payments.

Beyond trading, public sector adoption is quietly advancing.

According to the report, national agencies and multiple state governments are already implementing blockchain-based solutions across areas like identity verification, land registries, education records, and healthcare systems. These aren’t pilots. They’re operational systems designed to improve transparency, efficiency, and trust in public services.

However, integration into existing public infrastructure remains a key challenge. Many legacy systems lack the technical readiness or interoperability needed for seamless adoption, and institutional capacity gaps—such as limited digital skills and fragmented procurement processes—continue to slow implementation. Without addressing these bottlenecks, the long-term impact of public sector blockchain adoption may remain limited despite early momentum.

On the flip side, one of the most significant examples of web3-based solutions involves point-of-sale infrastructure, where blockchain now supports tracking transaction data across a network that serves over 50 million users.

This level of integration signals a broader trend: web3 in Nigeria is not emerging in isolation—it’s being wired into the everyday systems that people rely on. And that shift is what sets the country apart.

Nigeria’s Web3 Regulation Caught Between Momentum and Mistrust

The regulatory outlook remains complex, but there are indications of consolidation and progress. In 2021, the Central Bank of Nigeria (CBN) restricted banks from handling crypto transactions. That policy was reversed in December 2023, allowing banks to open accounts for licensed Virtual Assets Service Providers (VASPs).

The Securities and Exchange Commission (SEC) now oversees digital assets and launched its Accelerated Regulatory Incubation Program (ARIP) to streamline VASP onboarding and provide temporary licenses. However, contradictions remain, such as the 2024 blocking of Binance, Coinbase, and other exchanges by the Nigerian Communications Commission (NCC), despite SEC approvals for local platforms like Quidax.

The report also identifies emerging pressure points:

• Lack of unified digital asset legislation
• Overlapping mandates between SEC, CBN, and NDIC
• Unclear frameworks for DeFi, NFTs, and DAO structures

Still, active engagement from industry groups like SiBAN, VASPA, and FintechNGR, alongside the Investments and Securities Act 2024, suggests momentum toward a more cohesive framework.

Looking Ahead

The Nigeria Web3 Landscape Report concludes that Nigeria’s growth trajectory is strong but hinges on alignment between regulators, global protocols, and local talent.

Hashed Emergent’s investment thesis remains focused on early-stage founders in frontier markets, with Nigeria serving as a critical hub for talent, technical innovation, and protocol partnershi