September 11, 2025
President Bola Tinubu, has directed the Central Bank of Nigeria, CBN, and other financial regulators to intensify their oversight on digital currencies and stablecoins, amid concerns over their rapid adoption outside conventional banking channels.
The move signals a projection to balance innovation with financial stability in Nigeria’s evolving digital economy.
Tinubu who was represented by Minister of Finance and Coordinating Minister of the Economy, Wale Edun, gave the directive at the 18th Annual Banking and Finance Conference of the Chartered Institute of Bankers of Nigeria, CIBN, in Abuja.
He highlighted the need for vigilant monitoring.
“There is a digital revolution. So many people now are not using the banking system to make payments. They’ve turned to stablecoin. They’ve turned to digital currency,” maintaining that the shift as a challenge that regulators must proactively address.
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The call for stringent oversight is coming as Nigeria grapples with the explosive growth of fintech and cryptocurrency usage.With over 30 million Nigerians engaging in digital payments and crypto transactions, although the sector was boosting financial inclusion, it however, also raised red flags on risks like money laundering, volatility, and bypassing regulated systems.
Tinubu’s order behooves the CBN, Securities and Exchange Commission, SEC, and other agencies to track these developments closely while fostering innovation in areas like AI, open banking, and digital assets.
Experts view the president’s instructions as an apt and timely intervention. A fintech analyst at the Lagos Business School, Dr. Aisha Bello, noted that Nigeria’s crypto market, valued at over $400 million in daily trades, demands robust frameworks to prevent illicit activities without stifling growth.
She said, “This isn’t about banning digital currencies; it’s about ensuring they contribute to our $1 trillion economy goal by 2030.”
The Tinubu administration’s recent tax reforms, including the consolidation of over 100 agencies into a single Nigeria Revenue Service effective January 2026, further underscore efforts to streamline oversight and enhance economic efficiency.
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The administration also tied the regulatory push to broader economic priorities, stressing that financial inclusion must lead to job creation, particularly for youth. He called for accessible loans and services to support households and businesses, warning that unchecked digital shifts could undermine monetary policy and financial security.
The CBN was yet to issue a formal response, but sources indicate immediate steps toward enhanced surveillance and potential guidelines for stablecoin issuers
This development aligns with global trends, where regulators in the U.S., EU, and even China are grappling with digital assets’ implications.
Nigeria, being Africa’s largest economy, President Tinubu’s directive to ramp up oversight on the sector could pave the way for safer integration of blockchain technologies, potentially positioning the country as a fintech hub while mitigating risks.
