Nigerian cryptocurrency platform Busha has introduced Bitcoin-backed loans, allowing customers to borrow Naira without selling their Bitcoin holdings. The product enables users to access up to 50% of the value of their Bitcoin as a loan, positioning digital assets as collateral for everyday liquidity while maintaining long-term exposure to Bitcoin.
Busha's new lending product allows eligible users to borrow Naira by locking their Bitcoin as collateral on the platform. Customers can access loans worth up to 50% of the value of their Bitcoin holdings, while the pledged assets remain securely locked until the loan is fully repaid. The company said the facility carries a monthly interest rate of 2%. The launch addresses a longstanding gap in Nigeria's crypto ecosystem. While many Nigerians hold Bitcoin as a store of value, particularly amid persistent Naira depreciation, few locally regulated platforms have provided a simple way to unlock liquidity without requiring users to sell their assets.
For long-term Bitcoin holders, the product offers an alternative to liquidating investments during temporary cash shortages. Instead of selling Bitcoin and potentially missing future price appreciation, users can obtain Naira financing while maintaining ownership of their digital assets.
The development also reflects the gradual evolution of Nigeria's digital asset market beyond simple cryptocurrency trading.
Crypto platforms are increasingly introducing financial products such as lending, payments, and wealth management services that position digital assets as part of broader financial infrastructure rather than speculative investments alone.
Busha's introduction of Bitcoin-backed lending comes as the company continues operating within Nigeria's evolving regulatory framework following its admission into the Securities and Exchange Commission's Accelerated Regulatory Incubation Programme (ARIP), which provides a supervised pathway for digital asset service providers.
Busha's Bitcoin-backed loan product represents another step in the maturation of Nigeria's crypto industry. By allowing users to access Naira liquidity without selling their Bitcoin, the platform expands the practical utility of digital assets and signals growing confidence in regulated crypto-based financial services within Nigeria.
