Nigerian Central Bank and SEC Collaborate on Crypto Regulation Framework

Highlights:

• The Nigerian Central Bank and SEC collaborate to create digital currency regulation.
• Nigeria’s crypto adoption drives policy reform and structured oversight.
• Stablecoin adoption and tax guidelines highlight evolving digital asset rules.

The Nigerian Central Bank and SEC are working together to create a new digital currency regulatory framework. Governor Olayemi Cardoso confirmed this partnership at the annual lecture at Lagos Business School. He stated that the partnership aims to fill gaps in the current crypto policy.

Cardoso further highlighted how cryptocurrencies and fintech will play a bigger role in monetary policy. However, he had also stated that the full effect is unknown. The Central Bank of Nigeria and the SEC are now looking to develop policies that encourage innovation and economic stability.

Earlier in February 2021, the CBN had prohibited banks from servicing crypto-related accounts by issuing a directive. The aim was to reduce the risk of money laundering and financing of terrorism.

Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has announced that the bank is working with the Securities and Exchange Commission (SEC) to create a sustainable framework for digital currencies in the country.https://t.co/zlkhE6ogqb

— The ICIR (@TheICIR) October 3, 2025

Shift in Regulatory Tone

The regulation strategy has been shifted in the administration of President Bola Tinubu. The Central Bank and the SEC of Nigeria are in harmony in their approach. Authorities admit that previous policies were a drag on innovation and a source of market confusion.

Governor Cardoso acknowledged that the rapid expansion of crypto markets was an unprecedented problem among regulators. According to him, CBN and SEC are currently collaborating to midwife a sustainable policy environment. The crypto ban was lifted in December 2023 by the Central Bank. It published a guideline to assist the banks in dealing with Virtual Asset Service Providers (VASPs). The new regulation offers transparency to financial institutions regarding digital asset operations.

The mission is to enable every regulatory agency to contribute to establishing a functioning digital asset ecosystem, according to Cardoso. The new structure will likely stabilize the crypto landscape in Nigeria and draw investments. Cardoso also highlighted that gradual reforms have started to restore investor confidence in the economy of Nigeria. The current regulatory initiatives will bring increased transparency and reduced confusion in the market.

Crypto Adoption and Stablecoin Progress

Nigeria has established itself as an international crypto hub. Youth interest, mobile access, and distrust in traditional banks are fueling this growth. Nigeria is a leader in African crypto markets, and peer-to-peer trading is popular. The Nigerian Central Bank and SEC now intend to implement taxes on eligible digital asset transactions. A bill is being drafted to clarify taxation procedures.

Meanwhile, the SEC opened its sandbox to crypto startups. Stablecoin projects can now operate in strictly regulated environments. In February, Nigeria had its first compliant stablecoin, cNGN, pegged to the naira.

Nigeria open to stablecoin businesses, says SEC DG | TheCable https://t.co/4d0hmjKpv3 pic.twitter.com/O5tJsnOB87

— TheCable (@thecableng) July 24, 2025

The cNGN is interoperable over multiple blockchain platforms. The launch aimed to facilitate cross-border payments and promote financial inclusion. The stablecoin also runs under the supervision of the SEC incubation program. SEC officials say stablecoin is increasingly becoming a part of Nigeria’s economy. Dollar-pegged securities are gaining popularity in Nigeria as a means to mitigate naira volatility.

With the surge of digital assets and stablecoins, Nigeria is on the path towards becoming a globally relevant player in the crypto scene. The Nigerian Central Bank and the SEC appear determined to develop a digital currency framework that balances innovation and regulation.