Nigeria’s Web3 ecosystem has proven impressive resilience and promise, pulling in $130 million in total funding. Despite this, the ecosystem is up against major obstacles, such as a tough regulatory environment and investor wariness. A look at the Nigeria Web3 ecosystem Recent data paints an optimistic yet challenging picture of Nigeria’s emerging Web3 ecosystem.

Web3 funding in Nigeria for 2024 so far is at $20 million, a three-year low. This is a 64% cut from the $56 million high water mark of 2022. Grants were often the primary accelerant driving Web3 ventures, comprising an astonishing 90% of the deals in 2023. This is a stunning change from 2022, when grants accounted for only 21% of funding.

Except for Nigeria… Funding may have dried up everywhere, but Nigeria is still Africa’s Web3 developer powerhouse. Yet it currently represents only 3% of all global blockchain developers. The nation furthermore accounted for 4% of all new Web3 talents created worldwide in 2024. Exhibit 5 – Nigeria’s share of Web3 developers has surged 1,400% over the last 10 years. This is the highest growth rate globally.

Over the last year, stablecoins found themselves as one of the most powerful players in Nigeria’s Web3 ecosystem. In 2024, a total of $24 billion in stablecoins were inflows. The overall value of digital assets accepted in 2023 was $59 billion. Offshore stablecoins were the clear winners in dollar value received. This demonstrates how much people in the country love these new digital assets.

The failure of yet another unregistered digital asset company Crypto Bridge Exchange (CBEX) left their investors ruined. As a result, over 600,000 Nigerians lost a staggering $811 million. This absence of registration prevented regulators’ ability to step in and protect investors.

"The first responsibility of the SEC is to watch over regulated institutions within the confines of its available resources. Registration actually is the hallmark of regulation. Without registration, the possibility of regulation becomes difficult." - Emomotimi Agama

Non-infrastructure startups came in first by deal count, with a total of 11 transactions. The finance and entertainment sectors were a distant second and third with seven and two agreements, respectively. These stats highlight the myriad use cases and increasing demand across industries in Nigeria.

"Compared to India’s $5 billion in Web3 funding, Nigeria’s $130 million collective funding reflects a smaller ecosystem constrained by unclear regulatory climate and investor caution. A majority of Nigerian web3 startups cite funding access as a major issue." - Uchenna Edeoga