by Abiodun JIMOH
The Securities and Exchange Commission (SEC) is developing a regulatory framework for stablecoins in collaboration with developers, as part of efforts to build trust and structure within Nigeria’s fast-growing digital asset ecosystem.
This was disclosed by the Director General of the Commission, Dr. Emomotimi Agama, during his keynote address at the 2025 Decentralised Finance (DeFi) Summit held in Lagos. Agama emphasized that the Commission is not looking to clamp down on DeFi but rather to support the emergence of credible operators through inclusive and innovative regulation.
“We believe responsible DeFi can thrive in a regulated environment,” Agama stated. “Our focus is on investor protection, fostering innovation, and improving digital literacy.”
As part of this drive, the SEC will soon launch a nationwide investor education campaign titled “Crypto Smart, Nigeria Strong.” Targeted primarily at young Nigerians—especially students in schools and universities—the initiative will teach fundamental blockchain concepts, how to identify crypto scams, and the benefits of long-term investing.
Agama explained that the Commission’s roadmap for the future of digital finance in Nigeria rests on three key pillars: Collaboration, Innovation, and Trust. These will be supported by a broader licensing regime aimed at making regulation more efficient, transparent, and risk-based.
The SEC is also considering the introduction of tiered Virtual Asset Service Provider (VASP) licenses, streamlined approval processes, and automated compliance tools to attract credible players and weed out bad actors.
On the subject of Naira-pegged stablecoins, Agama said the Commission is actively exploring a framework that ensures such tokens are fully backed by verifiable reserves and subject to regular audits. These stablecoins, he noted, would support cross-border transactions, enhance digital payments, and power programmable finance tools within the Nigerian economy.
“Having a clear, robust framework will enable digital asset innovation to serve real-world economic activity—not just speculative trading,” he said.
Agama also acknowledged the growing influence of digital finance in the lives of young Nigerians. According to him, over 65% of crypto users in Nigeria are under the age of 35, many of whom are either financially excluded or underserved by conventional banking systems. For this demographic, digital assets offer more than speculation—they represent a path to financial independence and wealth creation.
Beyond stablecoins, the SEC is reviewing frameworks for digital asset Exchange Traded Funds (ETFs), custodial wallets for pension funds, and tokenised securities to be managed by licensed asset managers. With Nigeria’s pension fund assets surpassing ₦16 trillion, these tools are expected to unlock institutional capital, enhance transparency, and build credibility across the industry.
As Nigeria’s digital finance landscape continues to evolve, the SEC’s approach under Agama’s leadership signals a progressive shift toward inclusive regulation, youth empowerment, and long-term economic transformation through blockchain and digital innovation.
