Nigeria has signalled a major policy shift by opening its doors to stablecoin businesses, provided they comply with local regulations. This move reflects the country’s changing stance on digital assets, aiming to regulate rather than restrict the growing crypto market.

Regulatory Welcome for Stablecoins

Director-General of Nigeria’s Securities and Exchange Commission (SEC), Emomotimi Agama, announced that the country is now receptive to stablecoin firms that operate within its legal framework. Speaking at the Nigeria Stablecoin Summit in Lagos, Agama stated, “Nigeria is open for stablecoin business, but on terms that protect our markets and empower Nigerians.” He added that several firms focusing on stablecoin applications have already been onboarded through the SEC’s regulatory sandbox, highlighting the country’s evolving approach to digital finance.

Agama underlined that regulating stablecoins is not just a financial decision but a developmental one. “When the history books document Africa’s financial revolution, today will be remembered as the moment we moved from potential to action,” he said, calling for responsible oversight to harness the benefits of blockchain-based currencies.

Growing Interest from Global Crypto Firms

Nigeria’s friendlier regulatory stance appears to be attracting interest from international crypto companies. In May, Blockchain.com announced plans to open a physical office in Nigeria, calling it the company’s fastest-growing market in West Africa. Owenize Odia, the firm’s general manager for Africa, praised Nigeria’s recent steps toward regulatory clarity. “Nigeria has taken meaningful steps toward creating a clear framework for crypto,” she said, underlining the country’s potential to lead in the digital finance space.

Balancing Innovation and Enforcement

While Nigerian regulators are welcoming innovation, they are also keen to maintain strict oversight. In March, Information Minister Mohammed Idris remarked that enforcement actions were not intended to cripple the industry but to ensure compliance. “We are ensuring that no one comes and operates without regulation,” he said, addressing concerns about unregulated crypto firms.

This statement followed Nigeria’s filing of an $81.5 billion lawsuit against Binance in February. Authorities accused the exchange of contributing to the devaluation of the naira and alleged it owed $2 billion in back taxes. Despite such high-profile enforcement actions, officials like Idris continue to highlight the importance of blockchain technology for the national economy.

Blockchain’s Role in Nigeria’s Future

In a March opinion piece, Idris described blockchain technology and digital assets as increasingly central to Nigerian economic activity. “They are fast becoming central to how our people transact, create and build,” he wrote, signalling the government’s recognition of the sector’s transformative potential.

While challenges remain, Nigeria’s latest approach suggests a balancing act between fostering innovation and ensuring market stability. As more stablecoin firms enter the country under regulatory oversight, Nigeria positions itself to be a leader in Africa’s emerging crypto economy.