• Nigeria forms group to explore stablecoin regulation

• Goal: boost fintech while ensuring monetary stability

• Stablecoins now 40% of Nigeria's crypto market

After creating a regulatory framework for crypto assets, Nigeria’s government is turning its attention to stablecoins — digital tokens pegged to real-world currencies and seen as a more stable alternative to traditional cryptocurrencies.

Central Bank of Nigeria (CBN) Governor Olayemi Cardoso announced the creation of a working group to study how the country could adopt stablecoins. The announcement came during the annual meetings of the International Monetary Fund and the World Bank in Washington.

The group, which will include the CBN, the Ministry of Finance, and other public institutions, will assess the economic, regulatory, and technological impact of introducing a national stablecoin framework. These digital assets, backed by currencies or commodities, are gaining popularity in emerging markets seeking to boost financial inclusion and preserve monetary stability.

According to the governor, the goal is to support the development of financial technologies without stifling them, while maintaining confidence and stability.

Monetary Sovereignty in Focus

The CBN’s review of stablecoins builds on its broader effort to modernize Nigeria’s payment system, which has seen rapid growth in fintechs and digital platforms. Nigeria, which launched Africa’s first central bank digital currency — the eNaira — in 2021, now wants to align its rules with the rise of privately issued crypto assets.

The initiative could define how stablecoins are issued, converted, and supervised in Nigeria, strengthening the central bank’s oversight of digital capital flows.

Nigeria is one of the world’s biggest crypto markets. Between July 2023 and June 2024, the country processed about $59 billion in crypto transactions, ranking second globally after India. Stablecoins account for roughly 40% of the Nigerian crypto market in 2024 and an even higher share — around 43% — of retail transactions under $1 million. About 22 million Nigerians, or 10.3% of the population, held or used cryptocurrencies in 2025, according to a recent report.

Fintech Push for Flexible Rules

Nigeria’s fast-growing fintech sector has long urged authorities to adopt a flexible regulatory approach and to recognize stablecoins as legitimate payment tools. Some local money transfer and crowdfunding platforms are already testing their use to enable cross-border payments and reduce reliance on the U.S. dollar.

Still, the central bank remains cautious, warning of risks linked to volatility, fraud, and capital control evasion.

Analysts say Nigeria may look to hybrid models tested in hubs such as Singapore and Dubai, where stablecoins are issued under specific licenses and backed by authorized banks.

If successful, Nigeria could become the first major African economy to introduce clear regulations for stablecoins.

Fiacre E. Kakpo