Nigeria's SEC drums up stablecoin regulation advances in West Africa's largest economy

Nigeria’s Securities and Exchange Commission (SEC) says it is ready to welcome stablecoin firms, provided they comply with local regulatory laws. 

Speaking Thursday at the Nigeria Stablecoin Summit in Lagos, SEC Director-General Emomotimi Agama said the agency had already begun onboarding companies through its regulatory sandbox.

“Nigeria is open for stablecoin business, but on terms that protect our markets and empower Nigerians,” Agama said during a panel discussion at the summit. “We have onboarded some firms focused on stablecoin applications, all while ensuring compliance with core risk management principles.”

Nigeria SEC welcomes applications for stablecoin companies

Agama, who also described himself as an advocate for responsible innovation, said regulating stablecoins is imperative for the economic development of Nigeria.

“When the history books document Africa’s financial revolution, today will be remembered as the moment we moved from potential to action,” he remarked. Agama told attendees he is confident about Nigeria becoming a future hub for stablecoin-driven trade and crypto capital flows across Africa.

“Five years from today, I want to see a Nigerian stablecoin powering cross-border trade from Dakar to Dar es Salaam,” Agama continued, “I want to see global capital flowing into Lagos as the stablecoin hub of the global south.”

In late May, Blockchain.com revealed it had made some progress in the nation’s digital asset policies when it announced plans to open a physical office in the country. The company called Nigeria the fastest-growing market in West Africa, adding that a clear regulatory framework made the jurisdiction crypto-friendly.

Stablecoin firms find favor under SEC sandbox

To many crypto firms, per Agama, the SEC’s regulatory sandbox regulation is flexible enough to accommodate crypto businesses in the country without impeding innovation. When asked about the possibility of the regulations stifling growth due to strictness, he told attendees that firms do not have anything to worry about, as the opposite has occurred. 

“The SEC’s regulatory sandbox is attracting both local and international startups,” he surmised.

The stablecoin initiative comes against the backdrop of Nigeria’s rebound in investor confidence. According to a Bloomberg report on Friday, the economic performance is buoyed by economic reforms made by President Bola Tinubu’s administration. 

Tinubu entered office in May 2023 after weeks of backlash from citizens who had claimed the 73-year-old won the presidential elections unfairly. He has bashed naysayers and implemented policies that have led the country to the biggest bond rally among emerging markets this year.

In July alone, naira-denominated government bonds posted an 8.6% return, the best monthly performance among the 23 countries tracked in Bloomberg’s Emerging Market Local Currency Government Index. The year-to-date return now stands at 26%, outperforming the emerging market average of 7.1%.

Reforms under Tinubu’s administration include eliminating fuel subsidies and tax law changes that have allowed Nigeria’s naira to float more freely. 

The Nigerian naira edged higher against the U.S. dollar on Thursday, with the USD/NGN exchange rate settling at 1,533.28, a 0.04% gain from the previous trading session. Over the past month, the naira has appreciated by 0.64%, extending its 12-month advance to 3.32%.

Data compiled by Bloomberg shows the naira’s 30-day historical volatility dropped from 23% in December to 4.6% in July. Inflation also slowed for a third consecutive month in June, hitting 22.2%. Meanwhile, the Central Bank of Nigeria has held its key interest rate steady at 27.5%.

Nigeria’s government revenue jumped 43% in the first half of 2025 compared to the same period a year earlier. Tax reforms are expected to further improve collections. Additionally, a recent rebasing exercise raised Nigeria’s gross domestic product by 30%, improving debt ratios and strengthening the country’s borrowing profile.

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