Nigeria is bubbling with Web3 potential. Imagine a country where artists can bypass exploitative galleries, where small businesses can access global markets without crushing bank fees, and where individuals can own their digital identities and data. That’s the potential of Web3 in Nigeria—a potential powered by a youthful, bullish generation eager to seize opportunity and entrepreneurship. We are looking at a 1400% increase in Web3 developers in the past 10 years – the fastest developer growth in the world. This is no mere hype; it’s a creative revolution in the making.

Web3's Potential: A Grassroots Uprising?

Think about it: Nigeria's got the talent. Only 3% of the world’s Web3 devs are right here but they’ve produced 4% of all new Web3 talent this year—1 in 25 developers—so far. What do we do when that potential is conspicuously subverted, when even such institutions as are ostensibly designed to protect us collapse in cataclysm? What to do when the dream of financial independence becomes a nightmare?

Web3, fundamentally, is about redistributing power, about returning decision-making authority to the people. We provide opportunities for artists such as Aisha, a gifted digital illustrator. Just last month, she explained how NFTs allowed her to sell her creations directly to collectors all over the world, without the gatekeepers that previously collected half of her profits. It’s about providing diverse small business owners from underserved communities access to the capital and the markets they previously didn’t have access to. Nandar Lwin's passion for expanding access to blockchain technology isn't just a talking point; it's a lifeline for these communities.

This burgeoning ecosystem is fragile. It needs nurturing, not neglect.

CBEX Scam: Regulatory Failure Fuels Outrage

The CBEX scandal is a loud wake-up call that even in the digital age, the Wild West is alive and well. It’s a bit of a Wild West out there! More than 600,000 Nigerians, many lured by the prospect of rapid wealth, ended up losing a mind-boggling N1.3 trillion ($811 million). Let that sink in. Millions of lives affected. Were they greedy? Maybe some. But let's be real: many were simply desperate, looking for a way out of poverty in a country riddled with economic hardship. Desperation can be a very motivating factor, but thankfully for scammers it’s often their only target’s motivating factor.

The real outrage is even worse than the scam. It’s as much about the Securities and Exchange Commission’s (SEC) failure to prevent it. SEC Director General’s assertion that CBEX wasn’t registered so they can’t regulate it and no complaints were submitted. This is bureaucratic passing at its finest! Are we really claiming that we want the SEC’s hands to remain tied until after the next Enron or Theranos has already committed its fraud? Where's the proactive oversight? Where's the consumer protection? It would mean Nigeria has lost a total of N4.8 trillion ($2.99 billion) to crypto scams since 2016. That number is closer to N8 trillion ($5 billion) when adjusted for Naira depreciation. How many billions more must be destroyed before the SEC does its job right?

It's like watching a house burn down and saying, "Well, they didn't file a permit, so what could we do?" It's not good enough. It’s an egregious betrayal of the trust the Nigerian people placed in them.

Empowerment Lost: A Call for Action

The SEC’s response packs the biggest punch for the victims of CBEX. It hurts even more when you realize 90% of Web3 funding in 2024 will come from grants, which underscored how early and fragile most startups still are. We’re experiencing official digital asset inflows of $59 billion to Nigeria, $24 billion in stable coins alone. This troubling state of affairs points to a huge market need for better non-dilutive financial options. It is the government’s duty to promote and support growth in this market while protecting it from fraudsters and criminals.

This is more than a monetary issue — it’s the dreams American families lost, the hopes we shattered and the feeling that we got that ain’t right. Aisha lost her life savings in the CBEX scam, leaving her devastated. This experience further rattled her faith in the Web3 space. Millions more are afraid to even dip a toe into Web3. Yet they view the promise of this innovative space as poisoned by a few bad actors and the inaction of those meant to defend them.

The fate of Nigeria’s Web3 revolution is still very much up in the air. We can either let regulatory neglect stifle innovation and empower scammers, or we can demand better, build a more inclusive ecosystem, and unleash the creative potential of a nation hungry for change. The choice is yours.

  • Demand Accountability: The EFCC investigation is a start, but we need to hold the SEC accountable for its role in this disaster. We need transparency and a clear plan to prevent future scams.
  • Prioritize Education: Financial literacy is crucial. We need community-led initiatives to educate people about the risks and rewards of Web3, empowering them to make informed decisions.
  • Support Grassroots Innovation: Let's not let the CBEX scandal overshadow the incredible potential of Nigeria's Web3 ecosystem. Support the artists, entrepreneurs, and developers who are building a better future. Support projects like cNGN, a stablecoin project offering localized solutions, which launched in February 2025.

The future of Nigeria's Web3 revolution hangs in the balance. We can either let regulatory neglect stifle innovation and empower scammers, or we can demand better, build a more inclusive ecosystem, and unleash the creative potential of a nation hungry for change. The choice is yours.