Nigeria's Securities and Exchange Commission (SEC) has established a comprehensive regulatory framework for stablecoins under the Investment and Securities Act 2025, reversing its previously restrictive stance on digital assets. Director-General Emomotimi Agama announced at the Nigeria Stablecoin Summit that stablecoins are now classified as regulated securities, requiring issuers to meet strict compliance, licensing, and reserve requirements.
The SEC launched the Accelerated Regulatory Incubation Program (ARIP), a regulatory sandbox allowing stablecoin firms to test offerings under supervision while enforcing anti-money laundering and know-your-customer protocols. This shift marks a stark contrast to early 2024 when Nigeria sued Binance for $81.5 billion over tax evasion and forex violations amid a 70% naira devaluation.
Agama emphasized Nigeria's openness to stablecoin businesses "on terms that protect our markets and empower Nigerians," positioning Lagos as the "stablecoin hub of the Global South." The Central Bank of Nigeria now focuses solely on payments, ceding stablecoin oversight to the SEC. This policy responds to surging demand for dollar-pegged stablecoins among Nigeria's youth seeking inflation hedges, with Agama noting "exponential growth" driven by naira volatility.