Nigeria Becomes Africa's First to Regulate Stablecoins Under New ISA 2025 Act

Nigeria’s Securities and Exchange Commission (SEC) has approved a regulatory framework for stablecoins, positioning the nation as a pioneer in Africa’s digital asset landscape. During the Nigeria Stablecoin Summit in Lagos, Dr. Emomotimi Agama, the SEC’s Director-General, affirmed the government’s commitment to fostering stablecoin innovation under a structured regulatory environment. This marks a significant shift for Nigeria, which previously imposed and later lifted bans on cryptocurrency transactions. The regulatory pivot is anchored in the Investment and Securities Act 2025 (ISA 2025), which introduces provisions tailored to Nigeria’s market realities, emphasizing investor protection and market integrity while promoting financial inclusion. Agama highlighted that the framework aims to harness stablecoins as tools for economic empowerment, job creation, and regional leadership in digital finance [1].

The SEC’s endorsement aligns with global trends, as Nigeria mirrors regulatory approaches taken by the United States, United Arab Emirates, and European Union. Notably, the U.S. enacted the GENIUS Act in June 2025 to standardize stablecoin regulations, a development Agama cited as part of the broader international momentum toward structured markets. Nigeria’s engagement with stablecoin firms, though details remain undisclosed, signals a strategic push to integrate the sector into the formal economy. The ISA 2025’s focus on “African solutions” underscores the need for localized frameworks that address Nigeria’s unique demographic and economic conditions, contrasting with generic global policies [1].

The global stablecoin market, valued at $271 billion as of July 2025, is projected to grow as regulatory clarity expands. Dominated by Tether’s USDT and Circle’s USDC, the sector’s expansion is expected to attract institutional investors, boosting liquidity in the broader crypto market. Nigeria’s regulated environment could accelerate the adoption of Bitcoin and Ethereum, particularly amid the ongoing 2025 bull market. Agama emphasized that oversight will mitigate risks such as fraud and volatility, balancing innovation with safeguards [1].

Nigeria’s regulatory shift reflects a broader African trend toward embracing crypto. Ghana’s Central Bank has initiated similar measures, indicating regional collaboration to establish standards. However, Nigeria’s proactive stance distinguishes it, leveraging its status as Africa’s most populous nation and a major crypto market. The ISA 2025’s legal foundations aim to reduce illicit activities while fostering investor trust. Analysts note that the framework’s success will depend on enforcement and public education about stablecoin risks [1].

The move aligns with Nigeria’s economic strategy to diversify beyond oil and agriculture. By positioning itself as a hub for digital finance, the country seeks to attract foreign investment and stimulate entrepreneurship. Potential applications for stablecoins include cross-border remittances, SME financing, and e-commerce. Challenges remain, including infrastructure gaps and the need for robust consumer protection measures to prevent exploitation. The SEC’s ability to enforce compliance will be critical to the policy’s effectiveness [1].

Source: [1] [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/].