Nigeria's SEC Welcomes Stablecoin Companies Under New Regulatory Framework

Nigeria’s Securities and Exchange Commission (SEC) has signaled a strategic shift in its stance toward digital assets, explicitly welcoming stablecoin companies under a regulatory framework. Emomotimi Agama, the SEC’s director-general, emphasized in multiple recent statements that Nigeria is open to stablecoin businesses provided operators adhere to evolving digital asset regulations. “Nigeria is open to stablecoin business, but the condition is to protect our market and empower the Nigerian people,” Agama stated, highlighting the SEC’s commitment to fostering innovation while ensuring compliance [1][2][3]. This marks a departure from the 2024 regulatory crackdown on crypto platforms like Binance, which had created uncertainty for firms in the sector.

The 2025 legislative update underpins this policy shift by designating the SEC as the authority overseeing digital asset issuance, including stablecoins, while the Central Bank of Nigeria (CBN) retains jurisdiction over payment systems. This division of roles aims to clarify regulatory responsibilities and create a structured environment for stablecoin adoption. Agama noted that firms operating within these parameters will benefit from a supportive ecosystem, a move intended to attract investment while addressing risks associated with unregulated crypto activities. The CBN, meanwhile, will manage infrastructure for payments, ensuring alignment with national financial priorities [4][5].

The policy pivot aligns with Nigeria’s broader goals to address financial inclusion challenges. With over 70 million unbanked residents, the government views stablecoins as a tool to expand access to financial services. By granting the SEC authority to regulate stablecoin issuance, policymakers aim to create a legal framework that balances innovation with consumer protection and systemic stability. This approach mirrors regional trends, such as Ghana’s plan to regulate crypto platforms by September 2025, reflecting a growing consensus on structured digital finance governance [6][7].

However, the new framework introduces complexities for stablecoin operators. The division of regulatory mandates between the SEC and CBN may necessitate careful coordination to avoid overlapping requirements. For instance, firms must navigate compliance with both the SEC’s digital asset laws and the CBN’s payment system regulations, potentially increasing operational costs. Agama acknowledged this challenge, stating the SEC is “ready to embrace stablecoin businesses—provided they operate within our regulatory parameters,” signaling a focus on structured collaboration [4][5].

The timing of the policy announcement is also significant. With Nigeria hosting its stablecoin summit in July 2025, industry stakeholders have highlighted the potential for real-world adoption in cross-border transactions and remittances. Stablecoins, often pegged to fiat currencies like the U.S. dollar or naira, could streamline payments in a market where cash-based systems remain dominant. Yet, the success of this initiative hinges on the SEC’s ability to enforce compliance without stifling innovation.

International investors now face a dual landscape of opportunity and complexity. Nigeria’s large unbanked population and growing digital infrastructure present a lucrative market for stablecoin startups. However, firms must navigate local regulations, including exchange controls and anti-money laundering (AML) requirements. The SEC’s recent warnings against unregulated platforms, such as the collapsed CBEX Ponzi scheme, underscore the importance of due diligence for investors [8].

Nigeria’s approach reflects a pragmatic strategy to position itself as a regional leader in digital finance. By aligning with global trends in digital asset regulation, the country aims to foster innovation while safeguarding market integrity. The coming months will reveal how effectively this balance is maintained, with implications not just for Nigeria but for Africa’s broader fintech landscape.

Sources: [1] Nigeria open to stablecoins, says SEC [https://punchng.com/nigeria-open-to-stablecoins-says-sec/?utm_medium=web&utm_source=auto-read-also] [2] Nigeria's SEC Opens to Stablecoin Startups a Year After ... [https://www.ainvest.com/news/nigeria-sec-opens-stablecoin-startups-year-binance-crackdown-2507/] [3] Nigeria open to stablecoin businesses, says SEC DG [https://www.thecable.ng/nigeria-open-to-stablecoin-businesses-says-sec-dg/] [4] Nigeria Invites Stablecoin Startups, a Year After Binance ... [https://decrypt.co/331751/nigeria-invites-stablecoin-startups-year-after-binance-crackdown] [5] Nigeria's 2025 Act, cNGN Stablecoin Address 70M ... [https://www.ainvest.com/news/nigeria-2025-act-cngn-stablecoin-address-70m-unbanked-naira-depreciates-226-2507/] [6] Nigeria Stablecoin Summit: Stakeholders champion real- ... [https://technext24.com/2025/07/24/nigeria-stablecoin-summit-real-adoption/] [7] Ghana moves to regulate crypto as usage soars to $3b [https://www.cryptopolitan.com/ghana-to-regulate-crypto-as-usage-soars/] [8] Investigating CBEX: The Ponzi scheme that began ... [https://www.elliptic.co/blog/investigating-cbex]