- Nigeria formalizes stablecoin regulations, emphasizing compliance and market safety.
- Regulations target domestic and international engagement.
- Potential for Nigeria to become a digital asset hub.
Nigeria has introduced a new regulatory framework for stablecoins, enacted by the Securities and Exchange Commission under the Investment and Securities Act 2025 in Lagos.
The Nigeria Securities and Exchange Commission has launched a regulatory framework for stablecoins under the new Investment and Securities Act 2025. Emomotimi Agama, Director-General of the SEC, is central to implementing these changes.
Nigeria aims to protect markets and empower citizens by onboarding stablecoin firms through a regulatory sandbox. This move marks a departure from prior stringent crypto controls, like the legal action against Binance.
Immediate effects include potential growth in fintech investments and clearer pathways for international collaborations. Naira volatility has driven a demand for stablecoins, which are expected to benefit from increased regulation.
These regulations may allow Lagos to emerge as a digital asset hub, encouraging local innovation and attracting foreign capital. Licensing now requires strict adherence to AML/KYC protocols.
Analysts foresee increased market liquidity and stablecoin adoption. The framework could enhance remittance flows and B2B transactions, improving financial inclusion.
Nigeria’s approach is reminiscent of regulatory measures in the EU and Singapore. Consistent regulations are expected to stabilize the market and increase investor confidence, paving the way for the digital economy.
“Nigeria is open for stablecoin business, but on terms that protect our markets and empower Nigerians.” – Emomotimi Agama, Director-General, Nigeria SEC
