Nigeria SEC Launches Regulatory Sandbox for Stablecoin Innovation

TLDR

• Nigeria SEC now treats stablecoins as regulated securities under a 2025 law.

• Stablecoin firms must meet licensing, reserve, and compliance requirements.

• SEC’s sandbox program allows firms to test offerings with regulatory oversight.

• Lagos is being positioned as a stablecoin hub for African digital trade.

Nigeria has officially opened its market to stablecoin companies, creating a structured regulatory environment under the Securities and Exchange Commission (SEC). This development follows years of uncertainty surrounding digital assets in the country.

At the Nigeria Stablecoin Summit held in Lagos, SEC Director-General Emomotimi Agama confirmed that stablecoin issuers are now allowed to operate within a defined legal framework. He stated, “Nigeria is open for stablecoin business, but on terms that protect our markets and empower Nigerians.”

The foundation of the new policy lies in the Investment and Securities Act 2025. Under this law, stablecoins are now officially recognized as securities.

This classification requires firms to meet licensing, reserve, and risk management conditions before entering the market.

Companies must comply with the SEC’s full set of rules, which include anti-money laundering (AML) and know-your-customer (KYC) procedures. The goal is to allow innovation while maintaining market safety and consumer protection.

To manage new business models while keeping risks low, the SEC has introduced the Accelerated Regulatory Incubation Program (ARIP). This sandbox allows stablecoin firms and other digital asset providers to test their services in a controlled setting under the SEC’s supervision.

Only firms that meet the program’s standards will be approved for long-term operation. This model also mirrors global regulatory approaches. It provides space for innovation while enforcing compliance from the start. Agama noted,

“We have onboarded some firms focused on stablecoin applications, all while ensuring compliance with core risk management principles.”

This policy marks a change in Nigeria’s earlier crypto stance. In early 2025, the country sued Binance for $81.5 billion, accusing the exchange of causing currency instability and tax evasion.

This move reflected a more aggressive position toward unregulated digital assets.

Now, the SEC takes the lead in regulating stablecoins, while the Central Bank of Nigeria (CBN) remains focused on payment system oversight. This division of roles is aimed at improving regulatory clarity and fostering responsible crypto usage across sectors.

Agama pointed out that many Nigerian freelancers and businesses now use stablecoins to manage currency volatility. With the naira’s continued fluctuations, demand for dollar-backed assets has increased.

This trend supports the SEC’s goal to make Lagos a key hub for digital asset activity in Africa. “Across the continent, freelancers, traders, and businesses are increasingly opting for stablecoin payments,” Agama said.

The SEC’s new framework aims to offer financial access, reduce transaction costs, and enable stablecoin use in cross-border trade. The shift also signals Nigeria’s growing interest in regulated digital finance over outright restriction.