Nigeria Embraces Regulated Stablecoin Businesses
Nigeria is set to become a hub for regulated stablecoin businesses, signaling a significant shift in the country's approach to digital assets. The Securities and Exchange Commission (SEC) is paving the way for compliant stablecoin operations under the Investment and Securities Act 2025.
Clear Regulatory Framework for Stablecoins
The SEC now classifies stablecoins as regulated securities. The Investment and Securities Act 2025 mandates that stablecoin issuers adhere to strict compliance, licensing, and reserve requirements.
This regulatory clarity aims to position Lagos as a key digital asset hub in Africa, fostering responsible growth while safeguarding Nigerian consumers and investors.
While Nigeria previously maintained a cautious stance on crypto-related activities, including a lawsuit against Binance for alleged tax evasion and money laundering, the SEC is now adopting a forward-looking approach.
SEC Director-General Emomotimi Agama stated that Nigeria is “open to stablecoin businesses,” viewing regulated digital assets as crucial for the nation’s financial future. The SEC is prioritizing oversight and market stability.
“My message today is clear: Nigeria is open for stablecoin business, but on terms that protect our markets and empower Nigerians,” Agama said at the Nigeria stablecoin summit in Lagos.
The Central Bank of Nigeria (CBN) will primarily focus on payment matters, while the SEC takes the lead in stablecoin regulation.
“Across the continent, freelancers, traders, and businesses are increasingly opting for stablecoin payments to hedge against volatility, a trend significantly amplified by the naira’s fluctuations, which have driven exponential growth in demand for dollar-backed digital assets,” Agama added.
Accelerated Regulatory Incubation Program (ARIP)
To foster innovation, the SEC has launched the Accelerated Regulatory Incubation Program (ARIP). This initiative allows digital asset providers, including stablecoin firms, to test their offerings under SEC supervision.
ARIP ensures compliance with anti-money laundering (AML) and know-your-customer (KYC) standards while nurturing new ideas. Only firms meeting stringent standards will be permitted for long-term operation.
This regulatory sandbox model aligns with global best practices, promoting growth while maintaining robust oversight.
The SEC aims to establish Lagos as the “stablecoin hub of the Global South,” positioning Nigeria as a leader in African cross-border trade using digital assets. The increased adoption of stablecoins is expected to transform payment systems, reduce costs, and enhance financial access across the continent.
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