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Paper short abstract

This paper examines blockchain adoption and innovation in Nigeria amid regulatory uncertainty. Using sectoral and comparative evidence, it shows how ambiguity constrains institutions yet catalyses grassroots innovation, with implications for financial inclusion and adaptive regulation.

Paper long abstract

Blockchain technology adoption in Nigeria has expanded rapidly over the past decade despite persistent regulatory uncertainty and fragmented policy frameworks. This paper examines how blockchain innovation and use have evolved in such an institutional context and assesses the implications for development outcomes. Drawing on secondary data from blockchain analytics, policy documents, and comparative evidence from Kenya, Ghana, and South Africa, the study analyses adoption patterns across key sectors, including payments, remittances, and decentralised finance (DeFi).

The paper conceptualises regulatory uncertainty not only as a constraint on formal institutional participation but also as a catalyst for alternative, decentralised, and peer-to-peer innovation pathways. Macroeconomic pressures—such as inflation, exchange-rate volatility, and high transaction costs—combined with strong digital entrepreneurship and developer communities, have driven widespread grassroots adoption of blockchain solutions in Nigeria. As a result, innovation has largely occurred outside traditional regulatory and financial institutions, reshaping the structure of digital financial services.

Comparative analysis highlights Nigeria’s distinctive adoption profile relative to peer African economies, characterised by high retail usage and decentralised innovation rather than predominantly regulated institutional deployment. While these dynamics have supported financial inclusion and reduced transaction costs, they also raise governance, consumer protection, and systemic risk concerns.

The paper contributes to debates on innovation under institutional uncertainty by demonstrating how regulatory ambiguity shapes technology diffusion in developing economies. It concludes by proposing adaptive and coordinated regulatory approaches that can support responsible blockchain innovation while preserving its development potential.