Lagos: The Securities and Exchange Commission (SEC) says it is engaging with developers to co-create a framework for the regulation of stablecoins. Dr. Emomotimi Agama, Director-General of SEC, in a statement on Monday in Lagos, was quoted to have disclosed this in a keynote speech at the 2025 Decentralised Finance (DeFi) Conference.
According to News Agency of Nigeria, Agama said that the commission had been working with DeFi to attract credible players. He noted that the commission believes responsible DeFi can thrive in a regulated environment, and the SEC is looking forward to enhancing investor education and digital literacy. As part of this effort, the SEC is launching a ‘Crypto Smart, Nigeria Strong’ Initiative, targeting young investors across schools, universities, and social media. This initiative aims to cover basic blockchain principles, how to spot scams, and the value of long-term investing. Agama emphasized that the future of Nigeria’s digital assets ecosystem depends on three pillars: collaboration, innovation, and trust.
Speaking on the future of the sector, Agama mentioned that regulatory evolution, through an expanded licensing regime, was in progress. The SEC is enhancing its licensing architecture to make it more efficient, transparent, and risk-based. The goal is to attract credible operators while shutting out bad actors by streamlining application timelines, introducing tiered VASP licenses, and incorporating automated compliance monitoring. Additionally, the SEC is actively exploring a framework for Naira-pegged stablecoins. These stablecoins will be fully backed by verifiable reserves, audited regularly by independent custodians, and used for cross-border trade, payments, and programmable finance. Agama expressed that having a framework will allow digital asset innovation to serve real-world economic activity, not just speculation.
Agama highlighted that the Nigerian digital assets industry has experienced significant growth, with over 65 percent of cryptocurrency users in Nigeria being under the age of 35. These digital natives, many of whom are financially excluded or underserved by traditional banking, see digital assets as a means to save, invest, transact, and create wealth on their terms. The SEC is also reviewing pathways for digital asset Exchange Traded Funds, custodial wallets for pension funds, and licensed asset managers offering tokenized securities to institutional investors. This regulatory review aims to unlock long-term capital and bring credibility and stability to the sector.