Nigeria Opens Sandbox for Stablecoin Firms as Economy Rebounds

- Nigeria's SEC officially invites stablecoin firms to a regulatory sandbox initiative. - Policy aligns with economic reforms boosting market stability and investor confidence. On July 25, 2025, Nigeria's Securities and Exchange Commission (SEC) announced it is onboarding stablecoin businesses into its Accelerated Regulatory Incubation Program (ARIP), revealing the plan during the Nigeria Stablecoin Summit in Lagos. This marks a pivotal shift in the nation's digital asset policies, with SEC Director-General Emomotimi Agama stating that the commission aims to position Lagos as a "stablecoin hub of the Global South." The Investment and Securities Act 2025 provides the regulatory framework, designating stablecoins as securities. Under this framework, issuers must secure licenses, maintain adequate reserves, and adhere to Anti-Money Laundering (AML) and Know-Your-Customer (KYC) protocols. On July 25, at the Nigeria Stablecoin Summit, SEC Director-General Emomotimi Agama said, "Nigeria is open for stablecoin business, but on terms that protect our markets and empower Nigerians." The initiative seeks to foster innovation while prioritizing market safeguards and investor protections. This policy shift contrasts sharply with Nigeria's earlier stance on cryptocurrencies, which included legal actions against exchanges like Binance. By introducing structured regulations, the SEC now aims to balance innovation with market stability. The announcement coincides with economic reforms under President Bola Tinubu’s administration. These reforms, such as removing fuel subsidies and restructuring taxes, have strengthened the naira and reduced inflation. As a result, confidence among domestic and foreign investors is rising. Evidence includes the rally of naira-denominated government bonds in July and increased foreign investment inflows since early 2024. However, analysts note that short-term portfolio strategies, rather than long-term direct ventures, drive much of this investment. Meanwhile, according to CoinMarketCap on July 25, at 12:00 UTC, data showed that Tether (USDT) held steady at $1.00 with a 0.1% uptick in its 24-hour trading volume.