Nigeria SEC Opens to Stablecoins Under Strict Regulatory Oversight

The SEC’s new stance represents a calibrated evolution in Nigeria’s approach to digital assets. This announcement comes just months after the government took aggressive enforcement action against global cryptocurrency exchange Binance. In February 2024, Nigeria filed an $81.5 billion lawsuit against Binance, accusing its peer-to-peer platform of enabling illegal foreign exchange transactions that contributed to the devaluation of the naira. Authorities also alleged the exchange owed over $2 billion in unpaid taxes.

However, as clarified by Nigeria’s Minister of Information Mohammed Idris in March 2024, the government’s intent was not to shut down crypto innovation altogether. Instead, the enforcement efforts were designed to strengthen laws and ensure operators were brought under a formal regulatory framework. Director-General Agama’s recent statement at the summit, hosted by the Africa Stablecoin Network, crystallizes this intent: “Nigeria is open for stablecoin business, but on terms that protect our markets and empower Nigerians.” He described this as supporting responsible innovation while safeguarding financial stability.

Central to this new regulatory posture is the SEC’s regulatory sandbox. Agama revealed that several stablecoin-focused companies have already been admitted into this testing environment for innovative financial products. These firms are being evaluated based on their compliance with established risk management standards and transparency requirements, a process that allows the SEC to monitor new ventures before granting full operational licenses.

Agama’s vision extends beyond domestic oversight to a transformative role for Nigerian innovation in continental finance. “Five years from today, I want to see a Nigerian stablecoin powering cross-border trade from Dakar to Dar es Salaam,” he told the audience of policymakers, financial innovators, and blockchain industry leaders. This ambition underscores a strategic goal to make Nigeria a hub for digital currency innovation in Africa and to attract global investment into its burgeoning fintech sector.

The policy shift is already yielding tangible results in attracting investment and rebuilding confidence. In a direct response to the government’s efforts to clarify digital asset regulations, Blockchain.com announced in May 2025 that it would open a physical office in Nigeria, citing the country as its fastest-growing market in West Africa. This move indicates that clear regulatory pathways, rather than a laissez-faire approach, are what major industry players seek for long-term operations.

The narrative emerging from Lagos is one of structured opportunity. By moving from the high-profile case against Binance to a clear invitation for compliant stablecoin ventures, Nigeria’s SEC is attempting to chart a middle course. It seeks to harness the potential of digital assets for economic empowerment and cross-border trade efficiency, while implementing the guardrails necessary to prevent market manipulation, protect consumers, and maintain the integrity of the national currency. The success of this balanced approach will be closely watched as a potential model for other emerging markets navigating the crypto landscape.