Nigeria's SEC Shifts Stablecoin Stance as 2025 Act Drives Regulatory Framework

The Nigeria Securities and Exchange Commission (SEC) has signaled a renewed openness to stablecoin companies, positioning the country as a potential leader in cross-border digital asset innovation. Director-General Emomotimi Agama emphasized this stance during the Nigeria Stablecoin Summit in Lagos, stating that firms adhering to the nation’s evolving regulatory framework would find a supportive environment for innovation. “Nigeria is open for stablecoin business, but on terms that protect our markets and empower Nigerians,” Agama said, underscoring the SEC’s focus on balancing innovation with market safeguards [1]. This aligns with the 2025 Act, which grants the SEC authority over digital asset regulation, including stablecoin issuance, while payment systems remain under the Central Bank of Nigeria’s oversight [2].

The announcement marks a pivot from 2024’s regulatory turbulence, when Binance faced scrutiny and a U.S. executive, Tigran Gambaryan, was detained during a compliance visit. Gambaryan’s arrest, followed by a health-related release, drew international attention, with U.S. lawmakers pressing Nigeria to address the incident. Agama’s current message reflects a strategic shift toward fostering a stablecoin ecosystem, though analysts stress that rebuilding trust will require consistent enforcement and transparency. Ryan Yoon of Tiger Research noted that while stablecoin adoption could aid domestic currency management, “Nigeria won’t become a hub overnight” [1].

Agama’s vision includes developing a Nigerian stablecoin to facilitate trade across Africa, aiming to establish Lagos as a “stablecoin hub of the global south.” To achieve this, the SEC is employing a regulatory sandbox to test compliance mechanisms for stablecoin startups, aiming to balance innovation with safeguards against fraud. However, critics highlight the need for actionable frameworks. Hank Huang of Kronos Research emphasized the importance of clear licensing, reliable fiat access, and predictable enforcement, stating, “Real revival requires regulatory reliability and robust ramps” [1].

The initiative is also influenced by Nigeria’s economic context. The naira’s depreciation has heightened demand for stable alternatives, and the 2025 Act’s delineation of roles between the SEC and Central Bank aims to address these challenges. For global firms considering entry, Huang noted that “strong legal safeguards and visible re-engagement from major players” would signal market stability. The SEC’s proactive approach, including its 2025 warning against the CBEX Ponzi scheme, underscores its commitment to combating fraudulent activities while promoting innovation [3].

Agama’s leadership, since his 2024 appointment, has prioritized proactive digital asset engagement. Yet, analysts caution that restoring liquidity and trust will depend on aligning policy with tangible outcomes. “Nigeria’s tech ecosystem offers a foundation, but translating this into a stablecoin hub requires persistent, transparent execution,” Yoon observed [1]. The SEC’s current stance, coupled with the 2025 Act, presents a framework for attracting investment, though the path to realizing this vision will demand sustained regulatory clarity and enforcement.

Sources:

[1] [Decrypt: Nigeria Invites Stablecoin Startups, a Year After Binance Crackdown](https://decrypt.co/331751/nigeria-invites-stablecoin-startups-year-after-binance-crackdown)

[2] [AInvest: Nigeria's 2025 Act, cNGN Stablecoin Address 70M Unbanked](https://www.ainvest.com/news/nigeria-2025-act-cngn-stablecoin-address-70m-unbanked-naira-depreciates-226-2507/)

[3] [Elliptic: Investigating CBEX: The Ponzi Scheme That Began...](https://www.elliptic.co/blog/investigating-cbex)