Nigeria Aims to Be Stablecoin Leader in Africa, Sets Regulatory Path
More than a year after a sweeping crackdown on Binance and other crypto exchanges, Nigeria is extending a welcome to stablecoin-focused companies, suggesting a significant change in its digital asset approach.
At the Nigeria Stablecoin Summit held in Lagos, Securities and Exchange Commission (SEC) Director-General Emomotimi Agama declared that Nigeria is now open to stablecoin businesses, as long as they comply with emerging regulatory standards. “Nigeria is open for stablecoin business, but on terms that protect our markets and empower Nigerians,” Agama said, as reported by The Cable.
Agama, appointed as the SEC’s Director-General in 2024, has been pushing for more engagement with blockchain firms. He confirmed that several stablecoin projects have already joined the commission’s regulatory sandbox. Looking ahead, Agama envisioned Nigeria becoming a central player in digital finance across Africa. “Five years from today, I want to see a Nigerian stablecoin powering cross-border trade from Dakar to Dar es Salaam,” he said.
The shift in tone is notable, considering Nigeria’s harsh stance last year, which included the detention of Binance executive Tigran Gambaryan. The U.S. citizen was arrested during a compliance visit and held for months, prompting international backlash. He was released earlier this year due to health issues, and all charges were dropped.
Agama has previously acknowledged that while stablecoins offer huge potential, they also pose national security risks. Nonetheless, Nigeria is now seemingly betting on stablecoins to help improve domestic financial systems, including cross-border payments and remittances.
Still, challenges remain. Critics argue that Nigeria’s past actions have damaged trust, and rebuilding it will require more than public statements. “Stablecoin adoption won’t happen overnight,” said Ryan Yoon, senior analyst at Tiger Research. “But it could play a key role in helping manage the naira and drive innovation.”
Others, like Hank Huang of Kronos Research, warned that success will depend on regulatory clarity, reliable fiat on-ramps, and predictable enforcement. “Nigeria’s signal is strong, but real revival demands legal safeguards and visible industry engagement,” he said.
With crypto activity remaining popular at the grassroots level despite past restrictions, Nigeria’s new stance could position it as a regional leader—if its regulators follow through with consistency and transparency.
