Nigeria Embraces Regulated Stablecoins in Major Policy Shift

In a move that is being applauded all over the world, Nigeria has decided to regulate stablecoins and embrace them. In order to promote Nigeria as a leader in DeFi throughout Africa, the nation is creating a clear legal framework. Stablecoins are officially categorized as regulated securities under the recently passed Investment and Securities Act 2025. The Securities and Exchange Commission (SEC) has established stringent licensing, compliance, and reserve requirements for issuers.

Nigeria Regulates Stablecoins

The shift marks a significant change in Nigeria’s previously cautious stance toward digital assets. Earlier this year, the country filed an $81.5 billion lawsuit against cryptocurrency exchange Binance for alleged tax evasion and money laundering. Now, the tone has shifted, with SEC Director-General Emomotimi Agama declaring at the Nigeria Stablecoin Summit in Lagos, “Nigeria is open for stablecoin business, but on terms that protect our markets and empower Nigerians.”

It is anticipated that this increased regulatory clarity will increase investor confidence and draw digital asset companies to Nigeria, the biggest economy in Africa. While the Central Bank of Nigeria (CBN) continues to supervise issues pertaining to payments, the SEC will assume primary responsibility for stablecoin regulation.

 "Freelancers, traders, and businesses are increasingly opting for stablecoin payments," Agama said, underscoring the growing popularity of dollar-backed digital assets in the region and emphasizing that stablecoins provide a solution to the naira's volatility.

The SEC has also created the Accelerated Regulatory Incubation Program (ARIP). This is a sandbox program that lets people who offer stablecoins and other digital assets test their services while authorities monitor. It also makes sure that only businesses who follow strict anti-money laundering (AML) and know-your-customer (KYC) requirements can be in business for a long period.

The stablecoin policy in Nigeria is a huge step towards transforming how digital currencies are used in national and regional financial systems. It opens the door to a new time of controlled innovation and competitiveness around the world.