Nigeria Moves To Regulate Stablecoins

Following the rollout of its regulatory framework for crypto assets, the Nigerian government is turning its attention to stablecoins, digital tokens pegged to real-world currencies and seen as a more reliable alternative to volatile cryptocurrencies.

Central Bank of Nigeria (CBN) Governor Olayemi Cardoso announced the creation of a working group to explore how the country could integrate stablecoins into its financial system. He made the announcement during the annual meetings of the International Monetary Fund (IMF) and the World Bank in Washington, D.C.

The group, which includes representatives from the CBN, the Ministry of Finance, and other public institutions, will assess the economic, regulatory, and technological implications of establishing a national framework for stablecoins. These digital assets, backed by fiat currencies or commodities, are gaining traction in emerging markets looking to enhance financial inclusion while maintaining monetary stability.

According to Governor Cardoso, the central bank’s goal is to support financial innovation without compromising trust and stability in the monetary system.

The CBN’s review of stablecoins aligns with its broader strategy to modernize Nigeria’s payment ecosystem, one that has grown rapidly thanks to fintechs and digital platforms. Having launched Africa’s first central bank digital currency (CBDC), the eNaira, in 2021, Nigeria now aims to align its regulatory landscape with the increasing adoption of privately issued crypto assets.

The initiative could pave the way for clear guidelines governing the issuance, conversion, and regulation of stablecoins, giving the CBN greater oversight of digital capital flows.

Nigeria remains one of the largest cryptocurrency markets in the world. Between July 2023 and June 2024, the country processed an estimated $59 billion in crypto transactions—second only to India. Stablecoins accounted for nearly 40 percent of Nigeria’s crypto market last year and around 43 percent of retail transactions below $1 million. By 2025, projections suggest that roughly 22 million Nigerians (about 10.3 percent of the population) will own or use cryptocurrencies.

Nigeria’s booming fintech sector has long advocated for more flexible regulatory approaches that formally recognize stablecoins as legitimate payment tools. Several local money transfer and crowdfunding startups are already experimenting with stablecoins to facilitate cross-border payments and reduce reliance on the U.S. dollar.

However, the CBN continues to tread cautiously, warning of potential risks such as volatility, fraud, and the circumvention of capital controls.

Experts suggest that Nigeria could adopt hybrid regulatory models similar to those in Singapore or Dubai, where stablecoins are issued under specific licenses and backed by regulated financial institutions.

If successful, Nigeria could become the first major African economy to establish a comprehensive framework for stablecoins, marking another milestone in the country’s digital finance journey.