Nigeria is set to embrace stablecoins as part of its growing digital economy, with the Securities and Exchange Commission (SEC) assuring that the country is “open for stablecoin business” under strict regulatory compliance.
The SEC Director-General, Dr. Emomotimi Agama, made the announcement on Thursday at the Nigeria Stablecoin Summit in Lagos, describing the move as a crucial step toward financial innovation in Africa. “Nigeria is open for stablecoin business, but on terms that protect our markets and empower Nigerians,” Agama stated.
He called the development “historic,” saying, “When the history books document Africa’s financial revolution, today will be remembered as the moment we moved from potential to action.”
Agama explained that the growing adoption of stablecoins by Nigerian freelancers, traders, and businesses was largely driven by the naira’s persistent volatility. Stablecoins, particularly dollar-backed tokens, have become attractive alternatives for cross-border payments, remittances, and trade settlements.
He noted, “Freelancers, traders, and businesses are increasingly opting for stablecoin payments to hedge against volatility. The naira’s fluctuations have driven exponential growth in demand for dollar-backed digital assets.”
With Africa’s young and tech-savvy population, Nigeria’s vibrant digital economy is uniquely positioned to lead stablecoin adoption. “Africa needs African solutions—regulatory frameworks that reflect our market conditions, demographic realities, and development priorities,” he added.
The SEC boss assured that stablecoin adoption in Nigeria would be governed by robust regulations designed to protect investors and maintain financial stability. He referenced the newly updated Investment and Securities Act (ISA) 2025, which contains provisions for digital asset regulation.
Agama emphasized that regulation would not stifle innovation. “Are we stifling innovation? The evidence says no. Our regulatory sandbox continues to attract interest from both local and international startups. We have onboarded some firms focused on stablecoin applications, all while ensuring compliance with core risk management principles,” he said.
The SEC’s regulatory sandbox allows fintech startups to test innovative financial products in a controlled environment before full-scale deployment.
Painting a bold vision, Agama predicted that Nigeria could become the stablecoin hub of the Global South within five years. “I want to see a Nigerian stablecoin powering cross-border trade from Dakar to Dar es Salaam. I want to see global capital flowing into Lagos as the stablecoin hub of the Global South. This is not just finance. This is nation-building,” he declared.
The SEC believes that stablecoin adoption will boost financial inclusion, attract foreign investment, and position Nigeria as a leader in blockchain-powered trade and payments across Africa.
The summit brought together key players in the blockchain and financial technology ecosystem, including:
Nathaniel Luz, President of the Africa Stablecoin Network;
Obinna Iwuno, President of Stakeholders in Blockchain Association of Nigeria; and
Tosin Nathaniel-Luz, CEO of Nexply Compliance.
The stakeholders called for partnerships between regulators, innovators, and global investors to ensure that Nigeria’s stablecoin ecosystem thrives while adhering to best practices.
Financial analysts believe stablecoin adoption could reduce Nigeria’s overdependence on cash transactions, strengthen cross-border trade, and enhance remittance inflows. With remittances contributing billions of dollars annually to Nigeria’s economy, stablecoins offer a faster and cheaper alternative to traditional money transfer channels.
However, experts also warn of risks such as money laundering, cybercrime, and regulatory arbitrage, emphasizing the need for strict KYC (Know Your Customer) and AML (Anti-Money Laundering) controls.
Nigeria’s openness to stablecoins marks a turning point in the country’s digital finance journey. With regulatory clarity and collaboration between government agencies, fintech innovators, and international partners, the country could become a major player in Africa’s digital asset market.
As Agama put it, “This is the future of finance, and Nigeria will not be left behind.”