Nigeria Adopts Regulated Stablecoin Framework Under 2025 Act

Nigeria’s Securities and Exchange Commission (SEC) has signaled a strategic pivot toward integrating stablecoins into its financial framework, subject to regulatory compliance. In a statement during the Nigeria Stablecoin Summit in Lagos, SEC Director-General Emomotimi Agama confirmed the country’s openness to stablecoin businesses operating within localized rules. “Nigeria is open for stablecoin business, but on terms that protect our markets and empower Nigerians,” Agama said, emphasizing adherence to risk management principles and the use of a regulatory sandbox to onboard firms [1]. This marks a departure from Nigeria’s historically cautious approach to digital assets, which included a 2024 crackdown on cryptocurrency platforms and a $81.5 billion lawsuit against exchange Binance over alleged currency devaluation and tax evasion [2].

The new framework, formalized under the 2025 Investment and Securities Act, mandates stablecoin issuers to secure licenses, comply with anti-money laundering (AML) and know-your-customer (KYC) protocols, and maintain reserves to back their tokens. These requirements align stablecoin operators with traditional financial institutions, aiming to mitigate risks such as capital flight and illicit activities previously associated with unregulated digital assets [1]. Agama highlighted that the policy shift reflects Nigeria’s recognition of stablecoins’ potential to enhance cross-border transactions and financial inclusion, particularly in a market where informal remittances and crypto adoption have surged amid prior regulatory uncertainty [3].

Contextualizing the move, Nigeria’s rocky crypto landscape includes the suspension of Binance operations in 2024 and ongoing legal battles. However, officials like Minister of Information Mohammed Idris have underscored blockchain’s growing centrality to economic activity, stating that enforcement efforts aim to “strengthen our laws, not to cripple anybody” [2]. The SEC’s approach is also informed by global trends, such as the U.S. GENIUS Act, which mandates federal licensing for stablecoin issuers. Analysts suggest Nigeria’s structured regulatory model could bolster investor confidence and attract foreign capital, though success will depend on enforcement capabilities and market adaptability [4].

The timing of the announcement coincides with heightened global scrutiny of stablecoins, positioning Nigeria as a potential hub for compliant digital finance in Africa. By embedding stablecoins within its legal system, the SEC seeks to balance innovation with safeguards, addressing concerns about fraud and volatility. This development reflects broader African efforts to regulate digital assets, with Nigeria distinguishing itself through stablecoin-specific rules. As the sector evolves, the effectiveness of the framework will hinge on consistent oversight and the SEC’s ability to enforce compliance in a rapidly changing environment [1].

Sources:

[1] [Nigeria opens doors to stablecoin firms under regulatory oversight] (https://cointelegraph.com/news/nigeria-opens-doors-to-stablecoin-firms-under-regulatory-oversight)

[2] [Nigeria Adopts Regulated Stablecoin Framework Following ...] (http://ittdefense.us/sportskenovosti.hr/)

[3] [GENIUS Act Signed: What's Next For Digital Assets?] (https://www.bitgo.com/resources/blog/genius-act-signed/)

[4] [Nigeria Courts Stablecoin Firms, Marking a Shift From ...] (https://cryptorank.io/news/feed/62ba6-nigeria-embraces-stablecoins-post-binance-fallout)