Nigeria’s SEC to support regulated business in the payment stablecoin industry

What’s new? The head of Nigeria’s Securities and Exchange Commission (SEC), Emomotimi Agama, has declared the country’s readiness to support companies doing business in the stablecoin space, provided they comply with the law. Speaking at the stablecoin summit in Lagos, organized by Africa Stablecoin Network, Agama said the regulation of stablecoins was critical to Nigeria’s development.

Material by The Cable

What else is known?

“I stand before you as both a regulator and an advocate for responsible innovation. My message today is clear: Nigeria is open for stablecoin business, but on terms that protect our markets and empower Nigerians,” the official said.

Agama emphasized the importance of stablecoins in Nigeria’s fast-growing digital economy, especially with the volatility of the national currency, the naira (NGN).

He explained that freelancers, traders, and businesses across the continent are increasingly opting for payments in stablecoins to hedge volatility, a trend that is greatly amplified by the fluctuations in the naira, which has led to an exponential increase in demand for US dollar-backed digital assets.

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At the same time, he noted that the creation of regulation should not be based solely on international experience, but should take into account local specifics: “Africa needs African solutions, regulatory frameworks that reflect our market conditions, demographic realities, and development priorities.”

Agama also stated that the recently signed Investment and Securities Act (ISA 2025) is the cornerstone of the evolving regulation of digital assets in Nigeria.

Thus, the legislation includes provisions to provide a strong legal framework for the oversight of stablecoins and other digital assets.

He also emphasized that the regulation will not discourage innovation, as the SEC’s regulatory sandbox continues to attract both local and international startups.

For instance, the commission has already attracted several companies specializing in stablecoin apps by enforcing basic risk management principles.

“Five years from today, I want to see a Nigerian stablecoin powering cross-border trade from Dakar to Dar es Salaam. I want to see global capital flowing into Lagos as the stablecoin hub of the global south. This is not just finance. This is nation-building,” Agama concluded

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On January 4, 2024, the African Stablecoin Consortium (ASC) announced that the Central Bank of Nigeria had approved the launch of the naira-pegged stablecoin (cNGN), but the group later suspended the launch indefinitely.