Nigeria Opens Stablecoin Doors After Months of Binance Crackdown

Nigeria has opened its doors to stablecoin ventures, signaling a regulatory reset following months of stringent enforcement against Binance. The shift, announced by Emomotimi Agama, director-general of Nigeria’s Securities and Exchange Commission (SEC), was made during the Nigeria Stablecoin Summit in Lagos. Agama emphasized a dual role as both regulator and advocate for innovation, stating that Nigeria would welcome stablecoin businesses that adhere to local guidelines. This marks a significant departure from 2024, when the government intensified its crackdown on Binance, accusing the exchange of exacerbating naira devaluation through illicit forex trading and money laundering. The naira had lost nearly 70% of its value by that time [1].

The policy pivot aligns with Nigeria’s broader strategy to integrate digital assets into its financial system. Agama highlighted the need for regulatory frameworks tailored to Africa’s market realities, stating, “Africa needs African solutions.” He noted that the recently enacted Investment and Securities Act (ISA 2025) provides the legal foundation for stablecoin oversight and digital asset innovation. Under this act, the SEC has already begun incorporating stablecoin projects into its regulatory sandbox. Agama further outlined a vision for a Nigerian stablecoin to facilitate cross-border trade across Africa within five years [1].

The move reflects growing demand for stablecoins among Nigeria’s tech-savvy population, which has increasingly turned to dollar-backed tokens to hedge against inflation and currency depreciation. Agama acknowledged this trend, pointing to the adoption of stablecoins for remittances, savings, and daily transactions. The Central Bank of Nigeria has already approved the cNGN, a naira-pegged stablecoin developed by the Africa Stablecoin Consortium, as an early indicator of institutional support for digital assets. Nathaniel Luz, president of the Africa Stablecoin Network, praised the government’s “friendly regulation,” calling the summit a historic milestone for Africa’s digital asset ecosystem [1].

Nigeria’s regulatory shift also includes plans to tax digital asset transactions, aiming to capture revenue from a sector that has persisted despite prior restrictions. The government’s approach contrasts with earlier enforcement actions, which disrupted market activity but failed to address the root drivers of demand for stablecoins. By fostering compliance-driven innovation, Nigeria aims to position itself as a leader in blockchain-powered finance on the continent. As Agama stated, “My message today is clear: Nigeria is open for stablecoin business, but on terms that protect our markets and empower Nigerians.”

Source: [1] [Nigeria Courts Stablecoin Firms, Marking a Shift From Binance Crackdown] [https://cryptonews.com/news/nigeria-embraces-stablecoins-post-binance-fallout/]