Nigeria Launches Africa's First Stablecoin Regulatory Framework Under ISA 2025

Nigeria has taken a decisive step in shaping the future of digital finance by formalizing a regulatory framework for stablecoins under the Investment and Securities Act 2025. The Securities and Exchange Commission (SEC) announced this development during the Nigeria Stablecoin Summit in Lagos, signaling the country’s commitment to fostering innovation while safeguarding market integrity. Director-General Emomotimi Agama emphasized that Nigeria is “open for stablecoin business” but under structured conditions that prioritize consumer protection and compliance. This marks Africa’s first formal regulatory approach to stablecoins, positioning Nigeria at the forefront of digital finance in the Global South [1].

The framework mandates that stablecoin operators adhere to updated legal provisions, including mandatory registration, auditing, and anti-money laundering compliance. By embedding these requirements, the SEC aims to mitigate risks associated with unregulated digital assets, such as fraud and market instability. Agama highlighted that the regulatory sandbox model allows startups to test innovations under supervision, balancing oversight with technological advancement. This approach aligns with global trends seen in jurisdictions like Singapore and the UK but is tailored to Nigeria’s unique economic context, including the naira’s volatility and the demand for reliable payment solutions [1].

The policy shift reflects Nigeria’s broader vision to leverage digital assets for financial inclusion and economic growth. With millions of Nigerians already engaged in crypto markets, the framework seeks to channel this activity into a structured ecosystem. Agama noted that stablecoins could reduce transaction costs and support cross-border trade, particularly for freelancers and small businesses. The SEC’s strategy also emphasizes “African solutions” to African challenges, rejecting one-size-fits-all regulatory models. This focus on localization includes designing stablecoin mechanisms that reflect Nigeria’s demographic realities and developmental priorities [1].

Internationally, the move has drawn attention for its potential to attract stablecoin companies seeking a regulated environment. Analysts highlight that Nigeria’s legal clarity under ISA 2025 addresses practical challenges such as currency instability, offering a stable alternative to the naira for remittances and commerce [2]. The policy also responds to lessons learned from the Binance incident, which underscored the vulnerabilities of unregulated markets [3]. By proactively establishing guardrails, Nigeria aims to build trust in its digital financial system while maintaining its reputation as a crypto-friendly nation.

The SEC’s approach is framed as a cornerstone of national development, with Agama declaring, “This is not just finance. This is nation-building.” The vision includes positioning Lagos as a global capital hub within five years, leveraging Nigerian stablecoins to facilitate intra-African trade. As the global stablecoin market evolves, Nigeria’s structured regulatory model could serve as a blueprint for other emerging economies seeking to harness digital innovation without compromising stability [1].

Source:

[1] [Nigeria open to stablecoins, says SEC] (https://punchng.com/nigeria-open-to-stablecoins-says-sec/)

[2] [Nigeria Becomes First African Nation to Regulate ...] (https://www.ainvest.com/news/nigeria-african-nation-regulate-stablecoins-2025-isa-2507/)

[3] [Nigeria Embraces Stablecoins Post-Binance Fallout] (https://cryptonews.com/news/nigeria-embraces-stablecoins-post-binance-fallout/)