The Securities and Exchange Commission (SEC) of Nigeria has announced a strategic plan to introduce a regulatory framework for stablecoins, aiming to unlock new avenues for cross-border trade, programmable finance, and broader financial inclusion.
This announcement was made by SEC Director-General, Dr. Emomotimi Agama, during his keynote address at the 2025 Decentralised Finance (DeFi) Conference held in Lagos. The initiative, according to Agama, forms a critical pillar in SEC’s broader mission to build trust and integrity in Nigeria’s evolving digital asset market.
The proposed framework will focus specifically on naira-backed stablecoins, which are expected to be fully supported by verifiable reserves. These reserves will be subject to frequent audits by certified independent custodians to ensure transparency and guard against volatility—a necessary feature to distinguish them from speculative cryptocurrencies.
Agama noted that the new stablecoin regime would not only deepen digital commerce but also serve as a bridge for real-world economic activity by facilitating seamless cross-border payments and expanding programmable financial applications like smart contracts and automated lending.
“The future of Nigeria’s digital assets ecosystem depends on three pillars: collaboration, innovation, and trust,” Agama said. “Through a risk-based licensing system, we will attract credible actors while excluding bad-faith players.”
Recognising the increasing adoption of cryptocurrencies among Nigerian youth—over 65% of whom are under 35 and often underserved by traditional banks—the SEC is simultaneously launching a nationwide investor education initiative titled “Crypto Smart, Nigeria Strong.” The programme aims to educate students and young professionals on blockchain principles, long-term investment strategies, and scam avoidance.
The outreach will span schools, tertiary institutions, and social platforms, leveraging Nigeria’s tech-savvy youth population to drive informed digital finance participation.
In tandem with stablecoin regulation, SEC is evaluating other financial instruments designed to institutionalise digital assets in Nigeria. These include:
Digital Asset Exchange Traded Funds (ETFs) to open safe and regulated access to crypto investment;
Custodial Wallets for Pension Funds, tapping into Nigeria’s ₦16 trillion pension asset pool;
Tokenised Securities, allowing licensed asset managers to offer secure, blockchain-based investment products.
These developments are anticipated to unlock significant long-term capital and expand investment opportunities for both retail and institutional investors.
This bold regulatory agenda comes as Nigeria aims to assert itself as a leading digital finance hub in Africa. The Commission’s framework is aligned with the broader ambition of enhancing the country’s participation in global digital trade, driving financial inclusion, and spurring economic diversification.
The move follows recent collaborative efforts between the SEC and the Nigerian Exchange Group (NGX) to attract cross-border investment flows, especially from key economic allies such as China. Analysts see these developments as indicative of Nigeria’s commitment to modernising its capital market infrastructure and embracing digital transformation.
Market experts have welcomed the move as long overdue, particularly at a time when digital asset adoption is outpacing regulation. However, stakeholders are urging the Commission to ensure that implementation does not result in overregulation or stifle innovation.
Blockchain consultant and fintech analyst, Ifeanyi Okonkwo, commended the initiative but noted, “Clarity, consistency, and global alignment are key. SEC must engage with developers, exchanges, and legal experts to ensure the stablecoin framework is enforceable and attractive to both local and international players.”
As Nigeria takes bold steps to modernise its financial landscape, the SEC’s move to regulate stablecoins signals a growing recognition of digital assets as instruments of national economic strategy—not just fringe financial tools. With over half of the population being digitally active youth, this initiative may serve as a catalyst for a more inclusive, dynamic, and globally integrated economy.