“Nigeria is open for stablecoin business, but on our terms”- SEC DG hints at better regulation in Nigeria

As a leader in cryptocurrency adoption in Africa, Nigeria is making a bold case for stablecoin adoption, marking a dramatic shift from its formerly antagonistic approach towards crypto and the beginning of a new era in its financial history.

Dr Emomotimi Agama, Director-General of the Securities and Exchange Commission (SEC), hinted strategically at the first Nigeria Stablecoin Summit in Lagos on July 24, 2025.

“Nigeria is open for stablecoin business, but on terms that protect our markets and empower Nigerians.” This pivotal moment, underpinned by a tech-savvy youth, a volatile naira, and millions of unbanked citizens, positions Nigeria as Africa’s stablecoin frontier, if its ambitious regulatory vision can deliver.

Dr. Agama’s keynote, Building a Regulatory Framework for Stablecoin Innovation: The Nigerian Perspective, was both a policy blueprint and a rallying cry for a financial revolution. 

“When the history books document Africa’s financial revolution, today will be remembered as the moment we moved from potential to action,” he proclaimed, marking a sharp departure from the Central Bank of Nigeria’s (CBN) earlier crypto ban and the heavy-handed 2024 measures against global exchanges like Binance, which had previously clouded Nigeria’s digital asset landscape.

The cornerstone of Nigeria’s transformation is the Investment and Securities Act (ISA) 2025, a legislative milestone that embeds digital asset oversight into Nigerian law. Signed into law by the President on March 25, 2025, the ISA 2025 provides a clear mandate to regulate virtual assets, including cryptocurrencies, tokens, and investment contracts, as securities. 

Agama emphasised its significance: “The Investment and Securities Act 2025 provides a robust legal foundation to regulate digital assets, including stablecoins, ensuring clarity for investors and innovators alike.” 

Addressing debates over whether assets like Bitcoin are securities or commodities, he quipped, “They are either commodities or securities. It is either a boy or a girl… For us, it is a matter of proving it for what you think they are.”

This clarity empowers the SEC to foster orderly market development while prioritising investor protection.

A regulatory blueprint for innovation

Nigeria’s approach to stablecoin regulation is deliberate, structured, and forward-looking, guided by three core principles outlined by Agama: asset backing and transparency, interoperability and market integration, and consumer and investor protection. 

“Asset backing and transparency are critical,” he stated, highlighting Nigeria’s potential to leverage its vast resources. “In the 36 states and one federal capital, you have a minimum of two major commercially viable assets in each. Imagine if all of those assets were on a stablecoin.”

The SEC mandates that issuers of fiat-referenced digital tokens maintain verifiable reserves, subject to periodic disclosures and independent audits, ensuring stability and trust.

Interoperability is another priority, with the SEC promoting systems that enable seamless integration between digital assets and existing financial infrastructure, particularly for payments and settlements. 

Agama also emphasised consumer protection, with redemption rights, disclosure obligations, and compliance resolution mechanisms forming the bedrock of the regulatory regime. To foster innovation, the SEC has launched a regulatory sandbox, a testing ground for stablecoin startups. 

“Our regulatory sandbox has already onboarded firms focused on stablecoin applications, ensuring compliance with anti-money-laundering protocols and risk management principles,” Agama noted.

The sandbox balances oversight with creativity, attracting both local and international players eager to tap into Nigeria’s vibrant digital economy.

Learning from global models, crafting African solutions

The SEC DG contextualised Nigeria’s approach within global regulatory trends, noting diverse frameworks worldwide.

“In the U.S., the Genius Act regulates stablecoin. The EU’s MiCA regulations focus on transparency and stress testing of algorithmic models, while Singapore’s framework sets a standard for real-time redemption guarantees and operational resilience,” he observed. 

However, he stressed, “Africa needs African solutions. Regulatory frameworks that reflect our market conditions, demographic realities, and developmental priorities.” Nigeria’s ISA 2025 is tailored to these needs, positioning the country as a leader in Africa’s digital finance race.

Agama’s ambition transcends Nigeria’s borders. He envisions “a Nigerian stablecoin powering cross-border trade from Dakar to Dar es Salaam, with Lagos as the stablecoin hub of the Global South.” 

The SEC’s Crypto Smart, Nigeria Strong initiative complements this vision by educating young Nigerians on blockchain basics, scam prevention, and long-term investing. “We are empowering a generation to engage with digital assets responsibly,” Agama said, underscoring investor education as a pillar of adoption.

Nigeria’s pivot from crypto scepticism to stablecoin embrace is a bold gamble. Under Agama’s leadership, the SEC is combining innovation, regulation, and education to build a thriving digital asset ecosystem.

“This is not just about finance; it’s about empowering Nigerians and building a resilient economy,” he declared. With the ISA 2025 as its backbone, a regulatory sandbox fostering innovation, and a vision for regional dominance, Nigeria is laying the groundwork for a digital finance revolution.

Yet, success hinges on consistent policy execution, seamless coordination with the CBN, and rebuilding trust with global players. 

As Agama concluded, “Africa needs African solutions, and Nigeria is ready to lead.” Whether this moment becomes a historic milestone or a fleeting opportunity depends on Nigeria’s ability to balance ambition with discipline, transforming its stablecoin promise into a catalyst for economic empowerment across the continent.