Nigeria adopts first African stablecoin framework aligning with global standards

The Nigeria Securities and Exchange Commission (SEC) has unveiled a regulatory framework to integrate stablecoins into its financial ecosystem, marking a strategic pivot toward structured digital asset oversight. Under Director-General Dr. Emomotimi Agama, the SEC announced at the Nigeria Stablecoin Summit in Lagos that the country will adopt compliance measures—including licensing, fiat collateralization, and anti-money laundering (AML)/know-your-customer (KYC) protocols—to govern stablecoin operations under the Investment and Securities Act 2025 (ISA 2025) [1]. This framework positions Nigeria as the first African nation to explicitly endorse a regulated stablecoin market, aligning with global efforts in the United States, United Arab Emirates, and European Union [2].

The regulatory shift addresses Nigeria’s economic challenges, including currency volatility and the need for financial inclusion. Dr. Agama emphasized that the framework prioritizes protecting citizens while empowering businesses and individuals to leverage stablecoins for hedging against naira instability. “Nigeria is open for stablecoin business, but on terms that protect our markets and empower Nigerians,” he stated [3]. The move follows earlier restrictions by the Central Bank of Nigeria on crypto banking activities, which were lifted in 2023, signaling gradual normalization [4].

The new framework reflects a preference for locally tailored solutions, with Agama highlighting the need for regulations that align with Nigeria’s demographic and developmental priorities. This approach contrasts with prior digital currency initiatives, such as the eNaira, which saw limited adoption compared to private stablecoins. By providing legal clarity, the SEC aims to boost market consistency and stimulate fintech growth [5]. However, the policy has not yet triggered immediate on-chain transaction surges, as compliance discussions remain in early stages [6].

Nigeria’s stablecoin strategy mirrors global trends, including the U.S. GENIUS Act, which promotes innovation while mitigating risks. Analysts suggest the country’s alignment with international standards could enhance cross-border financial flows, particularly as stablecoins underpin broader crypto markets. With the global stablecoin market valued at $271 billion, Nigeria’s proactive stance could solidify its role as a crypto hub in Africa [7].

The regulatory overhaul underscores Nigeria’s broader acceptance of digital assets as a tool for economic transformation. By balancing innovation with caution, the SEC aims to harness stablecoin potential while curbing risks. This development could attract fintech firms and stablecoin issuers, reinforcing Nigeria’s position in Africa’s digital economy.

Sources:

[1] [Nigeria Adopts Stablecoin Framework to Align with Global Standards](https://www.ainvest.com/news/nigeria-adopts-stablecoin-framework-align-global-standards-boost-digital-economy-2507/)

[2] [Nigeria SEC Supports Stablecoin Growth via New Compliance Framework](https://www.ainvest.com/news/nigeria-sec-supports-stablecoin-growth-compliance-framework-2507/)

[3] [Nigerian SEC Gives Nod to Stablecoins as Crypto Policy Ahead of 2026](https://coinedition.com/nigerian-sec-gives-nod-to-stablecoins-as-crypto-policy-ahead-of-2026/)

[4] [Nigeria Signals Greenlight for Stablecoin Innovation Under New Regulatory Vision](https://cryptodnes.bg/en/nigeria-signals-greenlight-for-stablecoin-innovation-under-new-regulatory-vision/)

[5] [Nigeria Confirms Readiness For Stablecoin Operations](https://www.bitcoininsider.org/article/280449/nigeria-confirms-readiness-stablecoin-operations-details)

[6] [Nigeria Opens Stablecoin Market with New SEC Regulatory Framework](https://coincentral.com/amid-the-43-billion-crypto-boom-find-mining-offers-free-cloud-mining-to-help-users-earn-passive-income/)

[7] [Nigerian SEC Gives Nod to Stablecoins as Crypto Policy Ahead of 2026](https://cryptorank.io/news/feed/0c20d-meta-hires-ripple-veteran-ginger-baker-for-new-stablecoin-product-push)