Nigeria’s Securities and Exchange Commission (SEC) has signalled its readiness to support stablecoin businesses, provided they comply with a structured regulatory framework designed to safeguard investors and ensure market stability.
Speaking at the inaugural Nigeria Stablecoin Summit in Lagos, SEC Director-General Dr Emomotimi Agama outlined a progressive approach that balances innovation with oversight, positioning Nigeria as a potential leader in Africa’s burgeoning digital finance sector.
The summit, organised by the Africa Stablecoin Network and brought together industry leaders, regulators, and innovators to discuss the future of stablecoins in Africa’s largest economy.
Dr. Agama addresses stablecoin regulations
Dr. Agama emphasised that Nigeria is open to stablecoin businesses, provided they operate within a compliant regulatory environment.
“Nigeria is open for stablecoin business, but on terms that protect our markets and empower Nigerians,” he declared. “When history documents Africa’s financial revolution, today will be remembered as the moment we moved from potential to action.”
He stressed Nigeria’s progressive regulatory approach, anchored by the Investment and Securities Act (ISA) 2025. This legislation provides a legal framework for overseeing digital assets, including stablecoins and other cryptocurrencies.
“The ISA 2025 strengthens our ability to manage innovation responsibly. It provides the legal clarity the industry needs,” Agama stated.
Additionally, the SEC’s regulatory sandbox has fostered innovation while managing risks. Several firms specialising in stablecoin applications have been onboarded under this initiative, ensuring compliance with financial safeguards.
Speaking on the future, Dr. Agama envisions Nigeria becoming a key player in the global stablecoin ecosystem.
“Five years from now, I want to see a Nigerian stablecoin powering cross-border trade from Dakar to Dar es Salaam. I want Lagos to become the stablecoin capital of the global South. This is not just finance—it’s nation-building,” he proclaimed.
Also speaking is Nathaniel Luz, President of the Africa Stablecoin Network, who praised Nigeria’s regulatory clarity, calling it a pivotal moment for digital finance in Africa.
“This is a square peg in a square hole. It’s the right endorsement for the industry at this point,” Luz remarked. “Having such clarification from the DG of the SEC brings a high sigh of relief while opening the door to foreign players.”
Balancing innovation with investor protection
The SEC launched the ‘Crypto Smart, Nigeria Strong’ initiative to strengthen the ecosystem further and educate young investors on blockchain technology, scam detection, and long-term investment strategies.
This move reflects Nigeria’s commitment to fostering a secure and innovative digital asset space. Dr. Agama noted, “Africa needs African solutions—regulatory frameworks that reflect our market conditions, demographic realities, and development priorities.”
Lastly, as the SEC continues to refine its policies, this could serve as a model for other African nations navigating the evolving world of digital assets.
“This is not just about finance,” Agama reiterated. “It’s about building a stronger, more inclusive economy for the future.”