Nigeria’s SEC to Develop Stablecoin Framework to Boost Cross-Border Trade and Digital Finance

The Securities and Exchange Commission (SEC) of Nigeria has unveiled plans to establish a comprehensive regulatory framework for stablecoins—an initiative designed to unlock cross-border trade, facilitate digital payments, and support programmable finance within the country’s evolving digital asset landscape.

Announcing the move during his keynote address at the 2025 Decentralised Finance Conference in Lagos, SEC Director-General Dr. Emomotimi Agama stated that the Commission is working closely with developers and ecosystem participants to co-create a secure and transparent framework, with an initial focus on naira-pegged stablecoins.

According to Agama, the proposed stablecoins will be fully backed by verifiable reserves and subjected to routine audits by independent custodians. This design, he said, is intended to instill trust and accountability in Nigeria’s digital asset environment—shifting the narrative from speculation to real-world economic utility.

“The future of Nigeria’s digital assets ecosystem depends on three pillars: collaboration, innovation, and trust,” Agama noted. He reaffirmed the Commission’s commitment to attracting credible stakeholders and eliminating bad actors through a risk-based licensing framework.

As part of its broader digital literacy efforts, the SEC also introduced the “Crypto Smart, Nigeria Strong” campaign—an investor education programme aimed at enlightening young Nigerians on blockchain technology, fraud prevention, and responsible investing. The initiative is expected to reach audiences through schools, universities, and social media platforms.

Agama highlighted a key demographic trend shaping the sector, revealing that over 65% of Nigeria’s crypto users are under the age of 35—a majority of whom remain underserved by traditional financial institutions. For these digitally native users, crypto assets serve as accessible tools for saving, investing, and wealth generation.

Beyond stablecoins, the SEC is also evaluating additional regulatory pathways including:

• Digital asset Exchange-Traded Funds (ETFs)
• Custodial wallet structures for pension fund assets, which currently exceed ₦16 trillion
• Tokenised securities distributed by licensed asset managers to institutional investors

These initiatives are expected to mobilise long-term capital, promote market integrity, and elevate Nigeria’s participation in the global digital finance ecosystem.

The SEC’s proactive stance underscores the country’s readiness to leverage financial innovation in driving inclusive growth, financial resilience, and Nigeria’s emergence as a regional leader in digital trade infrastructure.