The Central Bank of Nigeria (CBN) and the Ministry of Finance have set up a working group to study how the digital asset could fit into Nigeria’s financial system.
Olayemi Cardoso, the CBN Governor, said the initiative is part of ongoing efforts to foster innovation while managing the risks associated with emerging financial technologies.
He disclosed this during the World Bank and International Monetary Fund (IMF) close annual meetings in Washington, D.C.
Nigeria to lead stablecoin policy in Africa
The new working group will assess the implications of adopting a stablecoin framework in Nigeria, working alongside other relevant financial institutions, according to him.
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“By no means does anybody want to stifle innovation. However, there is also a need to balance this with the risks involved in these new technologies and digital currencies,” he said.
The CBN governor noted that discussions at the IMF and World Bank meetings underscored the growing importance of digital assets and stablecoins in global finance.
“Their potential to enhance payments inclusion and cross-border transactions is undeniable, yet they also raise important questions around monetary sovereignty, exchange rate stability, and financial integrity,” Cardoso stated.
He added that Nigeria intends to engage with global regulators to help define clear and consistent rules for digital assets while ensuring the country’s economic interests are protected.
“As global regulators work to define clear and consistent frameworks, Nigeria intends to play an active role in shaping this conversation—ensuring that innovation supports, rather than undermines, financial stability and economic sovereignty,” he emphasized.
Cardoso further noted that ongoing reforms in Nigeria—such as exchange rate unification, improved market transparency, and disciplined monetary tightening—have strengthened the naira and boosted investor confidence.
He confirmed that the CBN’s recapitalisation drive aims to make Nigerian banks “stronger, more resilient, and globally competitive.”
The CBN governor concluded by commending Nigeria’s fintech sector, describing local innovators as “ambassadors of Nigeria’s creativity, resilience, and global relevance.”
He said deeper collaboration between regulators and the tech ecosystem will help build a secure, inclusive, and innovative digital financial system fit for Africa’s future.
Stablecoin adoption is still strong across Africa
Nigeria’s move aligns with trends across African countries, where digital currency use continues to grow rapidly.
The country currently leads Africa with nearly $22 billion in stablecoin transactions in a year, accounting for about 43 per cent of all crypto transaction volumes in Sub-Saharan Africa.
Countries such as Kenya, South Africa, Ghana, and Uganda are also recording significant growth in stablecoin activity, with South Africa seeing a 50 per cent month-over-month increase since late 2023.