Following the establishment of a regulatory framework for crypto assets, the Nigerian government is now focusing on stablecoins—digital tokens tied to real-world currencies and regarded as a more stable substitute for conventional cryptocurrencies.
Central Bank of Nigeria (CBN) Governor Olayemi Cardoso revealed the formation of a working group tasked with exploring how the nation could integrate stablecoins. The announcement was made during the annual meetings of the International Monetary Fund and the World Bank in Washington.
The working group, comprising the CBN, the Ministry of Finance, and other public institutions, will evaluate the economic, regulatory, and technological implications of establishing a national stablecoin framework. These digital assets, supported by currencies or commodities, are increasingly popular in emerging markets aiming to enhance financial inclusion and maintain monetary stability.
According to the governor, the objective is to encourage the growth of financial technologies without hindering innovation, while preserving confidence and stability in the system.
Monetary Sovereignty at the Forefront
The CBN’s assessment of stablecoins aligns with its wider mission to modernize Nigeria’s payment ecosystem, which has experienced significant expansion through fintechs and digital platforms. Having introduced Africa’s first central bank digital currency, the eNaira, in 2021, Nigeria now aims to harmonize its regulatory framework with the growing presence of privately issued crypto assets.
The initiative may establish guidelines for the issuance, conversion, and regulation of stablecoins in Nigeria, enhancing the central bank’s control over digital capital movements.
Nigeria ranks among the world’s largest cryptocurrency markets. From July 2023 to June 2024, it processed approximately $59 billion in crypto transactions, placing second globally after India. Stablecoins represented nearly 40% of Nigeria’s crypto market in 2024 and around 43% of retail transactions below $1 million. A recent report indicates that by 2025, about 22 million Nigerians, equivalent to 10.3% of the population owned or used cryptocurrencies.
Fintech Drive for Adaptive Regulations
Nigeria’s rapidly expanding fintech industry has consistently called on regulators to embrace a more adaptable framework and formally acknowledge stablecoins as valid payment instruments. Several local money transfer and crowdfunding platforms are already experimenting with stablecoins to facilitate cross-border transactions and lessen dependence on the U.S. dollar.
Nevertheless, the central bank maintains a cautious stance, cautioning against risks associated with volatility, fraud, and potential circumvention of capital controls.
Analysts suggest that Nigeria could explore hybrid approaches used in hubs like Singapore and Dubai, where stablecoins are issued under designated licenses and supported by regulated banks.
If implemented successfully, Nigeria could become the first leading African economy to establish clear regulations for stablecoins.
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