Nigeria's SEC Introduces Legal Framework to Regulate Stablecoins Under 2025 Act

Nigeria’s Securities and Exchange Commission (SEC) has announced a regulatory shift under the Investment and Securities Act 2025, establishing a legal framework to integrate stablecoins into the country’s financial system. The new rules require stablecoin issuers to obtain licenses, maintain reserve backing, and adhere to compliance protocols, marking a departure from prior cautious approaches to digital assets. The framework also introduces the Accelerated Regulatory Incubation Program (ARIP), a regulatory sandbox designed to foster innovation while enforcing anti-money laundering (AML) and know-your-customer (KYC) standards. SEC Director-General Emomotimi Agama emphasized the move positions Nigeria to address currency volatility, with stablecoins becoming a preferred tool for freelancers, traders, and businesses to hedge against naira fluctuations [5].

The SEC’s approach reflects a strategic pivot from earlier enforcement actions, such as legal challenges against global exchanges like Binance. By designating stablecoins as regulated securities, the agency aims to balance innovation with market stability, while the Central Bank of Nigeria (CBN) focuses narrowly on payment systems. Agama highlighted Lagos as a potential “stablecoin hub of the Global South,” envisioning cross-border trade powered by a Nigerian stablecoin within five years [5]. The framework mandates that only compliant firms transition to full-scale operations, ensuring investor protections and market integrity.

The regulatory changes address concerns about stifling innovation by embedding flexibility within strict compliance requirements. Agama noted the growing demand for dollar-backed stablecoins, driven by economic conditions in Nigeria, and underscored the need for “African solutions” tailored to the country’s digital economy [5]. The ARIP program allows startups to pilot products under supervision, aligning Nigeria with global fintech trends while emphasizing localized oversight. The SEC also stressed the importance of transparency and risk management, requiring stablecoin issuers to align operations with local economic dynamics.

The shift is expected to attract both domestic and international investors, positioning Nigeria as a model for responsible digital asset integration in Africa. By embedding legal clarity and consumer safeguards, the SEC aims to transform Lagos into a fintech hub, potentially reducing transaction costs and expanding financial inclusion. Agama framed the initiative as a cornerstone of “nation-building,” balancing regulatory rigor with support for innovation [5]. The move aligns with broader regional efforts across Africa to harness stablecoins for cross-border commerce and financial resilience.

The framework’s success will depend on its ability to attract stablecoin operators while mitigating risks identified during past enforcement actions. By mandating reserve requirements and ongoing oversight, the SEC seeks to prevent volatility-related fraud, a key concern in Nigeria’s digital asset market. The commission’s dual role as a regulator and innovation advocate underscores its goal of creating a secure, competitive ecosystem. As the framework takes effect, stakeholders will monitor its impact on Nigeria’s digital payment landscape and its potential to integrate the country into global trade networks [1].

Source: [1] [Nigeria Opens Doors to Regulated Stablecoins in Policy Shift] [https://www.mitrade.com/au/insights/news/live-news/article-3-987155-20250725] [5] [Nigeria open to stablecoins, says SEC] [https://punchng.com/nigeria-open-to-stablecoins-says-sec/]