SEC moves to regulate Stablecoins, launches crypto literacy drive for young Nigerians

The Securities and Exchange Commission (SEC) has announced that it is working closely with developers and industry stakeholders to establish a regulatory framework for stablecoins in Nigeria. This initiative forms part of broader efforts to encourage responsible innovation and build confidence in the digital asset ecosystem.

Speaking at the 2025 Decentralised Finance (DeFi) Conference held in Lagos, the Director General of the SEC, Dr Emomotimi Agama, stated that the Commission is not against progress within the DeFi space, but is committed to attracting credible players while deterring fraudulent or harmful activities.

Agama explained that the SEC views regulation as a critical tool for building public trust, safeguarding investors, and integrating DeFi into Nigeria’s wider financial architecture in a way that supports inclusive and sustainable growth.

As part of its strategy to deepen awareness and encourage informed participation in digital finance, the SEC is preparing to launch a national campaign titled “Crypto Smart, Nigeria Strong.”

The initiative is designed to educate young Nigerians, especially students in schools and universities, as well as youth active on social media, on the basics of blockchain technology, how to identify crypto-related scams, and the importance of long-term investing principles.

“The future of Nigeria’s digital assets ecosystem rests on three essential pillars: collaboration, innovation, and trust,” Agama said.

He noted that the SEC is revamping its regulatory structure by adopting a more transparent, risk-based licensing regime. This includes the introduction of tiered licensing for Virtual Asset Service Providers (VASPs), reducing processing timelines for applications, and integrating automated tools for monitoring compliance.

A key part of this reform agenda is the development of a framework for Naira-pegged stablecoins. These tokens will be fully backed by verifiable reserves, subject to regular audits by independent custodians, and will enable secure cross-border payments, programmable financial services, and trade facilitation.

Agama also pointed out that over 65 per cent of cryptocurrency users in Nigeria are under the age of 35, representing a digitally-savvy demographic that often finds itself marginalised by conventional banking systems. For many in this group, digital assets offer an alternative means of saving, investing, transacting, and achieving financial independence.

“The SEC recognises this reality and is adjusting its policies to better reflect the aspirations of this emerging generation of investors,” he said.

Looking ahead, the Commission is exploring further measures to deepen Nigeria’s digital asset market. These include the introduction of digital asset-based Exchange Traded Funds (ETFs), custodial wallet services for pension fund operators, and tokenised securities to be managed by licensed asset managers.

With Nigeria’s pension fund assets now exceeding N16 trillion, Agama expressed optimism that these innovations could unlock long-term investment capital, expand financial inclusion, and enhance credibility within the digital finance space.