The Securities and Exchange Commission (SEC) has unveiled a new initiative tagged “Crypto Smart, Nigeria Strong” as part of its strategy to develop a regulatory framework for stablecoins and strengthen oversight of the digital asset ecosystem in Nigeria.
Director-general of the Commission, Dr. Emomotimi Agama, announced the initiative while delivering a keynote address at the 2025 Decentralised Finance (DeFi) event in Lagos. He said the campaign is designed to engage young Nigerians—particularly students and digital natives—on blockchain literacy, scam awareness, and long-term investing, while co-creating effective rules for digital assets.
“This is why the SEC is launching the Crypto Smart, Nigeria Strong initiative,” Agama said. “It targets young investors across schools, universities, and social media, teaching basic blockchain principles, how to spot scams, and the value of long-term investing.”
Agama stressed that the SEC is not out to stifle innovation in the DeFi space but to create a regulatory environment that encourages credible participation and builds investor trust. He said the Commission is enhancing its licensing regime to attract responsible operators, speed up application timelines, and block out bad actors.
“Our goal is to attract credible operators while shutting out bad actors by streamlining application timelines, introducing tiered VASP licenses, and incorporating automated compliance monitoring,” he said.
The SEC is also developing a framework for Naira-pegged stablecoins, which Agama said will be fully backed by verifiable reserves, regularly audited by independent custodians, and used for cross-border transactions, payments, and programmable finance.
“Having a framework will allow digital asset innovation to serve real-world economic activity, not just speculation,” he said.
He noted that over 65 percent of cryptocurrency users in Nigeria are under the age of 35, many of whom are underserved by traditional banking institutions. For these users, Agama said, digital assets represent financial empowerment and access to savings, investment, and wealth creation tools.
“These are digital natives, many of whom are financially excluded or underserved by traditional banking. For them, digital assets represent not just speculation but empowerment,” he said.
The SEC is also reviewing potential pathways for digital asset exchange traded funds (ETFs), custodial wallets for pension funds, and tokenised securities offered through licensed asset managers. With Nigeria’s pension fund assets valued at over N16 trillion, Agama said the industry offers significant potential for regulated digital finance products.
He reaffirmed the SEC’s commitment to developing a robust and forward-looking regulatory framework that supports innovation while safeguarding market integrity and investor interests.
