Nigeria continues to be a major hub for cryptocurrency activity, with high trading volumes and active peer-to-peer (P2P) markets. Stablecoins such as USDT flow daily across borders, prompting questions about whether the usage is primarily for payments or speculation.
Nathaniel Luz, Chief Operations Officer at YDPay, offers a pragmatic perspective: stablecoin activity in Nigeria is largely genuine P2P usage rather than trading or arbitrage.
Real P2P Payments Drive Stablecoin Use
While exchanges often report large P2P volumes, Luz clarifies that much of this reflects actual peer-to-peer transactions.
“A significant portion of stablecoin volume in Nigeria is used for real P2P payments, not trading or arbitrage. This trend has been consistent over the years,” he said.
Unlike trading-driven spikes, Nigeria’s adoption is steady and functional, meeting everyday financial needs.
“Nobody is buying stablecoins to get rich overnight. The P2P volume is organic and reflects real transactions,” Luz added.
Freelancers and International Work Fuel Adoption
A key factor behind stablecoin adoption is Nigeria’s remote workforce. Freelancers working for international companies often rely on USDT because it is closer to their employer’s currency, making payments smoother.
“A student working remotely for a company abroad finds stablecoins the easiest way to get paid,” Luz explained.
Stablecoins are also used for online services and subscriptions, including platforms like Spotify, Zoom, and Apple.
Utility, Not Ideology, Drives Growth
Contrary to the narrative of crypto ideology, Luz points out that Nigerians use stablecoins for practical financial solutions rather than decentralisation principles.
“Stablecoins are controlled by companies like Tether, Ripple, and Circle. People use them because they work, not for ideology,” he said.
This highlights that stablecoins are fulfilling crypto’s original promise, a reliable digital medium for daily payments and cross-border transactions.
Infrastructure Layer Adoption on the Rise
Beyond consumer use, Luz sees stablecoins increasingly powering backend B2B systems, where end-users may not even notice them.
“The future will see stablecoins primarily used in business transactions, invisible to the end user,” he noted.
This underlines that stablecoins solve real problems, enabling smooth international payments, supporting remote work, and reducing transactional friction.
Steady, Practical Growth
Luz concludes that stablecoin adoption in Nigeria is incremental, practical, and essential:
“Stablecoins are being used daily for P2P payments. Digital currency is becoming the new cash, and stablecoins are the future.”
In short, the story of USDT in Nigeria is not hype or speculation, it is about practical digital payments, keeping money moving across borders, and powering subscriptions and freelance work efficiently.
