Crypto Reporter
Shalini Nagarajan
Crypto Reporter
Shalini Nagarajan
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Nigeria has thrown open its doors to stablecoin businesses, marking a major policy pivot over a year after its crackdown on crypto giant Binance rattled the country’s digital asset ecosystem.
Emomotimi Agama, director-general of Nigeria’s Securities and Exchange Commission (SEC), announced the shift on Thursday during the Nigeria Stablecoin Summit in Lagos, local outlet The Cable reported.
Speaking at the event hosted by the Africa Stablecoin Network, Agama said Nigeria would welcome stablecoin ventures that comply with regulatory guidelines.
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“My message today is clear: Nigeria is open for stablecoin business, but on terms that protect our markets and empower Nigerians,” Agama said during his keynote address. “I stand before you as both a regulator and an advocate for responsible innovation.”
The remarks come as Nigeria looks to revamp its approach to digital finance following months of market uncertainty.
In early 2024, the government launched a sweeping crackdown on Binance, accusing the exchange of contributing to the naira’s sharp decline through illicit forex trading, money laundering and tax evasion on its peer-to-peer platform. The naira had lost nearly 70% cent of its value in that time.
Young Nigerians Turn to Dollar-Backed Tokens for Stability
Stablecoins, which are digital tokens pegged to assets like the US dollar, have gained popularity in Nigeria as residents seek protection from inflation and currency devaluation. The country’s young, tech-savvy population has increasingly turned to dollar-backed stablecoins for everyday payments, remittances and savings.
“The digital economy in Nigeria is dynamic, youthful, and increasingly decentralised,” Agama said. “Freelancers, traders, and businesses across the continent are opting for stablecoin payments to hedge against volatility.”
Further, he said that local conditions must shape the nation’s regulatory response. “Africa needs African solutions,” he said. “Regulatory frameworks must reflect our market conditions, demographic realities, and development priorities.”
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The recently enacted Investment and Securities Act (ISA 2025) serves as the foundation of Nigeria’s digital asset regulation. It contains provisions to support stablecoin oversight and broader digital asset innovation.
Agama noted that the SEC has already onboarded firms working on stablecoin applications within its regulatory sandbox.
“Five years from today, I want to see a Nigerian stablecoin powering cross-border trade from Dakar to Dar es Salaam,” he said.
Nathaniel Luz, president of the Africa Stablecoin Network, praised the government’s stance. “This move is a significant step toward fostering a thriving and regulated digital asset ecosystem across Africa,” he said. Luz described the summit as a historic first for the continent and thanked the government for its “friendly regulation.”
Earlier this year, the Central Bank of Nigeria approved the launch of the cNGN. This naira-pegged stablecoin was developed by the Africa Stablecoin Consortium. The approval marked an early shift in sentiment within the country’s financial establishment.
As other nations, including the US and Hong Kong, accelerate stablecoin legislation, Nigeria’s renewed focus puts it back in the race to harness blockchain-powered finance.
The government has also hinted at plans to tax digital asset transactions, aiming to tap new sources of revenue from a sector that continues to grow despite past regulatory roadblocks.
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