Cryptocurrency platform Luno initiates staking services in Nigeria, setting a new standard for local digital asset platforms.
In a significant move for the African cryptocurrency landscape, Luno, a leading digital asset platform, has launched its crypto staking service in Nigeria. This expansion follows previous launches in South Africa and Malaysia, and it comes at a time when the country is establishing a comprehensive regulatory framework for stablecoins under the Investment and Securities Act 2025.
Nigeria has become the first African nation to establish such a regulatory framework, signalling a strategic shift towards integrating digital assets responsibly into its financial system. The regulatory clarity provided by the Securities and Exchange Commission (SEC) enables compliant firms like Luno to operate openly while protecting consumers and market stability.
The regulation coincides with increased adoption of crypto products like staking, with Luno being one of the platforms enabling Nigerian users to earn rewards on their holdings within a safer, regulated environment. This rollout of staking is part of a wider DeFi usage that benefits from stablecoin stability and regulated platforms, facilitating secure and borderless financial services.
The SEC has also established regulatory sandboxes and incubation programs to attract startups and innovation within DeFi and stablecoin applications. This approach balances innovation with risk management, positioning Nigeria as a hub for crypto innovation in Africa and the Global South.
SEC Director-General Emomotimi Agama envisions Nigeria leveraging stablecoins to power cross-border trade across Africa and attract global capital. Crypto staking and DeFi services complement these ambitions by promoting financial inclusion and new investment models in the local economy.
For Luno users, the introduction of crypto staking offers new earning possibilities. Users can earn up to 18% annually in passive income on select proof-of-stake assets through the Luno app. Supported assets for staking on Luno include Cosmos (ATOM), Solana (SOL), Polkadot (DOT), and NEAR Protocol (NEAR). There is no minimum amount, lock-up period, or hidden fees for staking on Luno.
Luno's move provides a compliance-led, accessible alternative for local participation in decentralized finance. The growth in the number of Luno users in Nigeria (over 21 million) is a key driver of interest in passive income opportunities amid market volatility. To encourage adoption, fees are waived for the first three months on Luno.
Ayotunde Alabi, CEO of Luno Nigeria, stated that they have evolved beyond the era of speculation, emphasizing the utility-driven nature of the new staking service. The demand for sustainable, utility-driven crypto products is growing, aligning with Luno's staking launch.
Interestingly, previously, Nigerian crypto users relied on offshore platforms for staking services. Luno is the first local crypto platform in Nigeria to offer crypto staking, providing users with a more accessible and locally compliant alternative.
Over 150,000 Luno users in South Africa have opened staking wallets, demonstrating the potential for the service in Nigeria. Rewards are paid out regularly on Luno, providing users with a steady stream of passive income.
In summary, Luno’s crypto staking rollout occurs amid Nigeria’s groundbreaking stablecoin regulations, collectively advancing the country’s decentralized finance landscape. This environment encourages innovation while aiming to protect users and stabilize markets, potentially catalyzing Nigeria’s role as a key crypto and DeFi hub in Africa.
Technology plays a pivotal role in this evolution, as the launch of Luno's crypto staking service in Nigeria signifies a fusion of finance and technology. Investors can now leverage technology to earn passive income in a regulated and compliant environment, by staking select digital assets such as Cosmos (ATOM), Solana (SOL), Polkadot (DOT), and NEAR Protocol (NEAR), through the Luno app.
