June 10 (THEWILL) — The International Monetary Fund (IMF) has urged Nigeria to bring stablecoins and other crypto-asset activities under formal regulatory oversight, warning that the rapid growth of digital assets could pose risks to financial stability if left unchecked.
The recommendation was contained in the IMF’s latest Article IV Consultation report on Nigeria, concluded by the Fund’s Executive Board on June 1 and released on Tuesday.
The call comes as Nigeria’s cryptocurrency market continues to expand, driven by growing retail participation, demand for cross-border payments, and the use of digital assets as a hedge against inflation.
According to the IMF, regulators should strengthen supervisory frameworks and ensure stablecoins and other crypto-related activities fall within the country’s regulatory perimeter.
“Directors stressed the importance of further strengthening supervision and bringing stablecoin and other crypto-asset activities into the regulatory perimeter,” the report stated.
The Fund listed digital assets among several emerging risks requiring closer monitoring, alongside rising non-performing loans, growing sovereign-bank linkages, and vulnerability to volatile portfolio flows.
While noting that Nigeria’s financial system remains broadly resilient, supported by ongoing bank recapitalisation efforts, the IMF cautioned that financial innovation is evolving rapidly and requires enhanced oversight.
It also urged authorities to maintain a tight, data-driven monetary policy stance until inflation is firmly anchored and supported the Central Bank of Nigeria’s transition toward an inflation-targeting framework.
In addition, the IMF called for accelerated implementation of Basel III standards, including liquidity coverage ratios and countercyclical capital buffers, to strengthen banking sector resilience.
The recommendation comes as Nigeria gradually develops its crypto regulatory framework.
In August 2024, the Securities and Exchange Commission (SEC) granted Approval-in-Principle to crypto exchanges Quidax and Busha under its Accelerated Regulatory Incubation Programme (ARIP), making them among the first legally recognised digital asset trading platforms in the country.
Despite indicating that more applications were under review, the SEC has yet to approve additional exchanges nearly two years later, leaving several applicants awaiting regulatory clearance.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
