“Businesses are no longer afraid to work with us now,” a spokesperson for Quidax, Nigeria’s first licensed cryptocurrency exchange, said at a stablecoins event in December 2024. Her comments summarise the reality in Nigeria where products built for blockchain use cases have been met with skepticism by businesses and regulatory scrutiny.
While cryptocurrency is merely a subset of blockchain applications, regulators’ shadow over it has also affected other applications of blockchain in healthcare, gaming, and investments where digital assets are used.
The good news is that regulations are now being developed and companies in the sector are now getting licenses, paving the way for a more conducive environment for blockchain innovation. The technology continues to evolve, becoming more user-friendly and accessible to the average person.
Here are the top five blockchain use cases in Nigeria and some of the startups building in each of them:
Fintech
Traditional technology has made tremendous progress toward solving the shortcomings of the various services provided by Africa’s traditional banking system—savings, payments, lending, investment, etc.
However, the problem remains largely unsolved: cross-border payments still need to be cheaper and faster. Point-of-sale payments need to be cheaper and more interoperable. Financial investments need to be more accessible. Lending needs to be more accessible and derisked. Several blockchain companies have emerged across the continent, striving to meet each or all of these needs. This is the most popular of all blockchain use cases in Nigeria so there are significantly more startups playing in this field than others. Here are a few of them:
Bitnob
Bitnob enables cross-border payments with its virtual cards and in-app transfers. It also provides APIs with which other platforms can provide the same services. Bitnob is built on Bitcoin and Lightning Network, a second layer built on Bitcoin for faster transactions. The company, founded in 2020 by Bernard Parah and Edward Amewu, claims to have an annualised total payment volume of $1.3 billion and that it is currently cash-flow positive.
Canza Finance
This startup hopes to become a web3 bank in the future. For now, its most popular product is the Baki, which enables businesses to make cross-border payments. It allows businesses to swap currencies at official rates, reducing transaction costs. Former AT&T employees Pascal Ntsama and Oyedeji Oluwole launched the startup in 2019.
Zone
Zone runs a decentralized and regulated blockchain payment network that connects financial institutions directly, eliminating intermediaries and enabling instant settlements in fiat currencies. This infrastructure automates reconciliation, and dispute management, and provides real-time transparency of transactions.
Obi Emetarom, Emeka Emetarom and Wale Onawunmi spun Zone off from Appzone, the banking as a service business they founded in 2008.
Prominent Nigerian financial institutions like First Bank, UBA, and Zenith Bank leverage Zone’s peer-to-peer payment network for instant settlements. In September 2024, Baxi by Onafriq, FairMoney Microfinance Bank, and KongaPay joined the network too.
Mansa Finance
Mansa Finance is a decentralised finance (DeFi) platform that provides asset-backed stablecoin lending, particularly to businesses, especially payment providers who need the liquidity to facilitate instant cross-border payments. Mansa sources this capital from institutional and accredited investors. The company, founded by Mouloukou Sanoh, officially launched in August 2024. Mansa claims to have processed over $10 million in transactions since.
Onboard
This startup launched in 2022 to help users “be their bank.” It is a self-custody wallet for managing digital assets—cryptocurrencies, tokens, etc without intermediaries. Onboard Wallet enables the transfer of funds directly to a bank account, circumventing centralized exchanges. Users can also send and receive payments in EUR and USD with the wallet.
Finna
This startup enables borrowers to secure low-interest Naira loans by pledging stablecoins (cryptocurrencies pegged to the US dollar) as collateral. This allows individuals and businesses to access Naira for immediate needs while preserving their valuable crypto assets, which may be appreciated significantly over time. It was founded in 2023 by Adebayo Juwon, former Business and Operations Manager at FTX, a now-defunct cryptocurrency exchange, and Agbona Igwemoh, former Chief Operations and Marketing Officer at Kylin Network, a popular blockchain network.
Blockradar
This is a B2B API-based blockchain product that enables fintech companies to easily integrate multichain wallets with which their customers can make stablecoin deposits and payments. This wallet is non-custodial, meaning users have full control of their funds, not held by BlockRadar. The company was founded in May 2024 by Abdulfatai Suleiman, the co-founder of Lazerpay, a crypto startup that enables businesses to accept cryptocurrency but shut down.
Crypto Exchange and Marketplace
This is one of the most popular applications of blockchain technology in Nigeria. A cryptocurrency exchange is a platform that allows users to buy, sell, and trade cryptocurrencies like Bitcoin, Ethereum, etc. Nigeria is the most prominent crypto market in Africa—of the $117.1 billion in crypto value circulated in Africa between July 2022 and June 2023, Nigeria received nearly $60 billion. Many exchanges have expanded their services to include cross-border payments, investments, and savings. Here are some of the crypto exchanges operating in the country:
Quidax
This is the first cryptocurrency exchange in Nigeria to be licensed by the country’s Securities and Exchange Commission (SEC) after years of tumultuous relations, including a ban. Founded in 2017 by Buchi Okoro and Morris Eberioma, Quidax facilitates the buying, selling, and storing of cryptocurrencies. It boasts a 24-hour spot trading volume of $7.4 million and supports over 20 cryptocurrencies. The platform also provides cards that enable payments with cryptocurrencies.
Busha
Founded in 2020 by Michael Adeyeri and Moyo Sodipo, Busha is another licensed cryptocurrency exchange in Nigeria. It enables the trading of cryptocurrencies. Busha also empowers users to spend their crypto like fiat currency or earn interest on it. The company is also exploring means to enable traders to collect crypto as payment, according to its website.
Yellow Card
Yellow Card facilitates the buying and selling of stablecoins—cryptocurrencies pegged to the dollar like USDT, USDC, and PYUSD. Initially focused on retail customers, the company has shifted its focus to businesses. Yellow Card works with approximately 30,000 businesses across Africa, providing them with access to payments and treasury management services, primarily through stablecoins. The company launched in Nigeria in 2019.
iExchange P2P
This company operates a peer-to-peer trading platform, which essentially connects individuals directly with each other to exchange cryptocurrencies like Bitcoin or Ethereum for traditional currencies like Naira. Unlike traditional exchanges where users trade with the platform itself, this platform allows users to find other users willing to buy or sell crypto, creating a decentralised marketplace.
Bitmama
Bitmama enables users to buy, sell, and trade various cryptocurrencies, including Bitcoin, Ethereum, and USDT. It also offers a stablecoin-backed card that enables one to spend cryptocurrency like fiat currency. Bitmama was founded in 2017 by Ruth Iselema.
Real World Asset (RWA) tokenisation
Blockchain technology aims to make things more accessible, and one such way is through “tokenization.” This means turning real-world assets like stocks, real estate, or even art into digital tokens.
Traditionally, these kinds of assets were mostly available to wealthy people. But by turning them into tokens, you can buy small pieces of them, making them more affordable for the average person. This is a big deal because it opens up new investment opportunities for everyone. Here are some startups based on this blockchain use case:
Xend Finance
This startup helps move real-world assets like real estate onto the blockchain. This lets people own tiny pieces of these assets, just like owning a tiny piece of a company’s stock. When you own a piece of property through the blockchain, you can earn money from things like rent or dividends. You can also easily buy and sell your share of the property using these digital tokens.
Xend Finance claims it teamed up with Risevest, a well-known investment platform, to help people invest in tokenised real estate.
Ugochukwu Aronu and Emmanuel Okoro founded the company in 2019, starting out as a platform that enabled transfers and bill payment with cryptocurrencies.
Hashgreed
The startup, founded in 2021, offers digital assets backed by real estate. Licensed by Nigeria’s SEC, and works in partnership with capital market operators such as licensed custodians, asset managers, brokers, issuing houses and its own Lagos state-registered digital cooperative network called Hashgreed Domain.
House Africa
Founded in 2019, House Africa enabling users to buy small shares of properties. The platform also collects a lot of data about property prices and how much demand there is in different areas. This helps investors understand the value of their investment and make better decisions. They can easily see if property prices are going up or down and sell their shares at any time.
Super migrate
Because more and more assets are being turned into tokens, there’s a growing need for tools that can easily move these tokens between different blockchain networks. Super Migrate, founded by Emmanuel Njoku, is becoming an increasingly popular means to move tokens from one blockchain to another.
Njoku’s previous product, Base Migrate, which helped move tokens to the Base network (created by Coinbase), has already been used to move over 28 different token projects with a combined value of over $1 billion.
Gaming
Blockchain technology is becoming more popular in gaming. It enables users to track things like in-game items and currencies The transparency also makes it impossible to cheat. Also, players can earn things like digital items, tokens, or even cryptocurrency just by playing the game. They can then use these rewards within the game or sell them for real money.
Some platforms enable users to place bets on games, sports, or real-life events. These companies in this space include:
Play1st
Play1st is a subsidiary of Carry1st, a mobile games publisher. It is a Web3 gaming app store that enables African game developers to create and publish games that use blockchain technology. Its parent company Carry1st is backed by popular investors like Andreessen Horowitz, Google, and even Riot Games, the company that makes League of Legends.
Gamic
Gamic is a popular Web3 social communication platform with a strong focus on gaming. It offers features like a cryptocurrency wallet service, community management tools, and an NFT airdrop program which are in demand from eSports teams, and gaming guilds. It was founded in 2021 by Nnamso Anthony, Chike Okonkwo, Ukeme Okuku and Michael Anyi.
Soccersm
Soccersm is a blockchain-based gaming platform that allows users to predict and place bets on the outcomes of future events, such as sports games, elections, or even cryptocurrency prices. The startup was founded in 2023 by Vicentia Asilevi.
Awujo
This gaming platform allows players to compete in tournaments, both solo and with friends, and earn money. It offers a wide range of games and fosters a strong sense of community through tournaments and events, connecting players and creating a vibrant gaming ecosystem. Awujo was founded in 2021 by Toyosi Abolarin and Francis Vesta.
Healthcare
Blockchain technology is essentially an immutable ledger, meaning data recorded on it cannot be altered or deleted. This makes it an excellent technology for ensuring data integrity. This is crucial in healthcare, where counterfeit drugs and inaccurate patient information can have serious consequences.
There’s a growing need for interoperability in healthcare data, allowing seamless data sharing between different providers. Facilitating secure and efficient information sharing is one of the most popular blockchain use cases in healthcare.
Beyond data integrity, blockchain can enhance financial security within the healthcare sector. By enabling real-time tracking of transactions, it helps to prevent fraud and quickly identify any attempts to manipulate financial records. This is vital in a domain where accurate and reliable financial data is crucial.
While the African healthcare industry is adopting electronic records to address some of these challenges, here are some of the startups using blockchain to tackle the problem:
Chekkit
Founded in 2018, Chekkit is a software-as-a-service startup that uses blockchain technology to fight counterfeit and improve supply chain transparency. It helps businesses track their products from production to the last mile.
DrugStoc
DrugStoc, like Chekkit, aims to get rid of fake and low-quality medicines. They work to ensure that medicines are safe and effective throughout the entire supply chain, from the manufacturer to the final customer. Founded in 2015, DrugStoc also makes sure that the prices of medicines are transparent and fair.
mPharma
mPharma uses blockchain technology to improve how medicines are distributed. It tracks the movement of medications, which helps reduce waste and ensures that patients have access to the medicines they need. The Ghanaian startup launched in Nigeria in 2023.
Mediverse
Mediverse has voice-controlled electronic health records software based on blockchain technology. Founded in 2021, it enables healthcare workers, including those in remote areas with or without Internet access, to input and retrieve patient records with their voice on any device. Doctors are able to dictate the notes on their device using an AI assistant called Luku but patient data is captured and stored on the blockchain.
