Nigeria Becomes First African Nation to Regulate Stablecoins Under ISA 2025 Framework

Nigeria’s Securities and Exchange Commission (SEC) has marked a pivotal shift in the country’s approach to digital assets, with Director-General Dr. Emomotimi Agama affirming regulatory support for stablecoin innovation during a keynote at the Nigeria Stablecoin Summit in Lagos. This move positions Nigeria as the first African nation to formalize a framework for stablecoins under the Investment and Securities Act 2025 (ISA 2025), a legislative effort designed to balance market growth with investor protection and market integrity. The SEC’s stance follows years of fluctuating policies, including the Central Bank of Nigeria’s (CBN) 2017 ban on crypto-related transactions, which was later rescinded in 2023. Agama emphasized that stablecoins could empower Nigeria’s population and drive job creation, provided they operate within a robust regulatory environment.

The ISA 2025 aims to establish a legal foundation for stablecoin oversight, tailored to Nigeria’s unique market conditions and demographic realities. Agama noted that the law incorporates “forward-looking provisions” to ensure alignment with global trends, mirroring regulatory approaches adopted by the U.S., UAE, and EU. The U.S. government, for instance, enacted the GENIUS Act in June 2025 to streamline stablecoin adoption, a development Agama highlighted as a model for fostering innovation while maintaining financial stability. Nigeria’s large and active crypto user base—ranked among the highest globally—further underscores its potential to shape regional and global stablecoin markets.

The stablecoin sector, currently valued at $271 billion with Tether’s USDT and Circle’s USDC as dominant players, is projected to grow as institutional investors increasingly participate. Analysts suggest that stablecoins’ liquidity benefits could accelerate mainstream adoption of cryptocurrencies like Bitcoin and Ethereum, particularly during the anticipated 2025 bull market [1]. Nigeria’s strategic focus on regulated stablecoin development aligns with this trajectory, potentially boosting cross-border transactions and financial inclusion. However, challenges remain, including harmonizing regulatory frameworks with the sector’s rapid evolution and ensuring compliance with international standards.

The SEC’s proactive engagement with stablecoin firms, though not disclosing specific entities, signals a deliberate effort to position Nigeria as a hub for African-led digital asset solutions. Agama emphasized the need for regulations that reflect local priorities, stating, “Africa needs African solutions.” This approach contrasts with past restrictive measures and reflects a broader commitment to leveraging technology for economic development. The country’s regulatory trajectory, influenced by global precedents yet tailored to local needs, could serve as a reference point for other nations navigating similar policy transitions.

As Nigeria moves toward a structured stablecoin ecosystem, the outcomes will be closely watched by global markets. The ISA 2025’s implementation could reinforce the country’s role in the African crypto economy and offer insights into balancing innovation with risk management. With a regulated framework in place, Nigeria’s experience may shape regional policies and highlight the potential of stablecoins to drive financial inclusion and economic growth.

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/].