Nigeria’s SEC proposes stricter rules for digital asset firms
SEC DG Dr. Timi Agama speaking at Nigeria Stablecoin Summit 2025
Africa Stablecoin Network
The tension
Nigeria’s SEC is bringing stablecoins into the regulatory fold while setting requirements that could make them harder to offer. That dynamic could push more stablecoin activity towards regulated markets or deeper into parallel ones.
The Nigerian Securities and Exchange Commission (SEC) has published a draft framework for regulating digital assets and their service providers. Published Aug. 20, the document offers a look at the SEC’s latest efforts to formalize Nigeria’s crypto market.
What stands out: Under the proposed regulations, stablecoins pegged to foreign currencies cannot be listed on exchanges or held by consumers without the SEC approving the said stablecoin.
- The SEC said it will assess the issuer’s regulatory status, audits, reserve quality and independent attestations, among other requirements.
- In addition, Naira- and commodity-backed stablecoins must hold 100% of their token value in reserves, allowing users to redeem their tokens in the event of a bank run.
- Foreign currency-backed stablecoins must hold at least 120% in liquid reserves, while crypto-backed tokens face a 150% minimum.
- Service providers seeking operational licences must apply through the Accelerated Regulatory Incubation Program (ARIP), except existing capital market operators adding VASP functions.
- Minimum capital requirements would be ₦2 billion (about $1.5 million) for digital asset exchanges and custodians, ₦500 million ($371,000) for real-world asset tokenization firms and ₦200 million ($148,000) for other service providers.
What this means: The SEC is tightening oversight of the crypto industry in the name of consumer protection and cybersecurity. The bigger question is how the industry responds to the tougher requirements.
- On the one hand, steep minimum capital requirements and supervisory fees could make digital asset services considerably more expensive, potentially limiting access to the SEC’s licensing regime to a small number of companies.
- On the other hand, while the SEC now recognizes stablecoins, heightened scrutiny of issuers and the risk of being barred from the market could push activity back into the peer-to-peer market, which gained prominence after the Central Bank of Nigeria restricted the industry in 2021.
Yes, but: The industry has until Sept. 3 to submit comments to the regulator.