The Securities and Exchange Commission (SEC) of Nigeria is collaborating with developers to establish a regulatory framework for stablecoins, aiming to integrate decentralized finance (DeFi) into the formal financial system while ensuring investor protection. This initiative was announced by SEC Director-General Dr. Emomotimi Agama during the 2025 Decentralized Finance Summit in Lagos.
Dr. Agama emphasized that the SEC seeks to attract credible participants and foster a transparent digital financial space, stating, "Our objective is not to stifle innovation, but to build a robust regulatory environment where responsible DeFi can flourish." The commission is launching the "Crypto Smart, Nigeria Strong" initiative, targeting young investors across educational institutions and social media platforms. The program focuses on educating participants about blockchain fundamentals, identifying scams, and promoting long-term investing.
To enhance regulatory efficiency and transparency, the SEC is overhauling its licensing architecture. This includes introducing a tiered Virtual Asset Service Provider (VASP) licensing system, streamlining application processes, and implementing automated compliance monitoring. Dr. Agama noted, "Our goal is to attract credible operators while shutting out bad actors by streamlining application timelines, introducing tiered VASP licenses, and incorporating automated compliance monitoring."
The SEC is also developing a framework for Naira-pegged stablecoins, which will be fully backed by verifiable reserves and audited regularly by independent custodians. These stablecoins are intended to facilitate cross-border transactions, retail payments, and programmable financial services, thereby supporting real-world economic activities beyond speculation.
Dr. Agama highlighted the significance of this development, stating, "Having a framework will allow digital asset innovation to serve real-world economic activity, not just speculation." This approach reflects Nigeria's commitment to becoming a leader in digital finance while safeguarding market integrity and empowering its citizens.