Stablecoin Adoption in Nigeria Moves to the Center of Regulatory Debate

The debate over stablecoin adoption in Nigeria has moved into regulatory territory. The Africa Stablecoin Network (ASN) is pressing for a unified national framework that brings the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC) into alignment on oversight.

ASN also backed CBN Governor Olayemi Cardoso’s remarks on the inefficiencies in cross-border payments, arguing that stablecoins present a practical response to settlement delays and high transaction costs that continue to burden African businesses. ASN President Nathaniel Luz rejected the idea that the issue is speculative. “For our continent, the conversation is not about speculation; it is about solving real payment and trade problems,” Nathaniel Luz said.

He cited settlement timelines of two to five days for cross-border transactions and remittance costs averaging 5 -7%. Stablecoin rails, he argued, can reduce settlement to minutes and transaction costs to below 1% where infrastructure and compliance standards are properly established. For micro, small, and medium enterprises, settlement speed directly affects liquidity. Delays tie up working capital. Transaction fees erode margins. Under the African Continental Free Trade Area (AfCFTA), payment efficiency influences competitiveness across borders.

Governor Cardoso has described global cross-border systems as “too slow, too costly, and too fragmented,” particularly for developing economies. ASN maintains that regulated stablecoin systems address those structural weaknesses without operating outside supervisory control. The CBN has identified risks, including currency substitution, foreign exchange volatility, and financial stability concerns. Nathaniel Luz acknowledged those risks but argued that formal oversight reduces exposure rather than increases it.

“When stablecoins operate within a clear Nigerian regulatory framework, transactions become more transparent, value flows are easier to monitor, and economic activity that currently sits outside formal channels is brought into the system,” he said. He added that the greater threat to monetary sovereignty lies in exclusion from emerging payment systems, not participation in them.

The regulatory base is already in place. The Investment and Securities Act (ISA) 2025 grants the SEC authority over digital assets, establishing a statutory basis for supervision. SEC Director-General Dr. Emomotimi Agama stated at the Nigeria Stablecoin Summit in Lagos that Nigeria is open to stablecoin operators, provided they comply with defined regulatory standards. He emphasized investor protection, market integrity, and structured market development.

Dr. Emomotimi Agama also acknowledged that freelancers, traders, and businesses are already using stablecoins to hedge against naira volatility and manage cross-border transactions.

The upcoming Nigerian Stablecoin Summit 2.0 will convene regulators, fintech operators, and compliance professionals to address supervisory design, reporting standards, and licensing requirements. Stablecoin adoption in Nigeria is already visible at the transactional level. The central issue is whether regulatory institutions will integrate that activity into formal payment architecture or leave it to operate in parallel systems.

ASN argues for coordination across agencies rather than isolated guidance. Fragmented oversight creates uncertainty for operators and investors. Unified supervision creates enforceable standards.