The Securities and Exchange Commission (SEC) has announced the upcoming launch of a national initiative titled ‘Crypto Smart, Nigeria Strong’ aimed at building a regulatory framework for stablecoins and educating young investors on the digital asset ecosystem.

The Director-General of the SEC, Emomotimi Agama, disclosed this while delivering the keynote address at the 2025 Decentralised Finance (DeFi) event held in Lagos.

According to Agama, the initiative seeks to engage developers and digital asset stakeholders in shaping a responsible and inclusive regulatory system, while boosting financial literacy and investor protection.

“This is why the SEC is launching a Crypto Smart, Nigeria Strong initiative, targeting young investors across schools, universities, and social media,” Agama said. “It aims to cover basic blockchain principles, how to spot scams, and the value of long-term investing.”

Agama said the SEC is not positioning itself against DeFi but is working to promote innovation within a safe regulatory environment. He emphasised the commission’s commitment to transparency, collaboration, and trust.

“The future of Nigeria’s digital assets ecosystem depends on three pillars: collaboration, innovation, and trust. The road we see ahead is regulatory evolution through an expanded licensing regime,” he stated.

The commission plans to restructure its licensing architecture to improve efficiency and oversight. Measures include streamlined application timelines, a tiered licensing system for Virtual Asset Service Providers (VASPs), and the integration of automated compliance tools.

Agama confirmed that the SEC is actively developing a framework for Naira-pegged stablecoins, which will be backed by verifiable reserves and audited by independent custodians. The stablecoins are expected to support cross-border transactions, programmable finance, and other real-world applications.

“We are actively exploring a framework for Naira-pegged stablecoins… Having a framework will allow digital asset innovation to serve real-world economic activity, not just speculation,” Agama said.

He also noted that Nigeria’s crypto market continues to grow, with over 65 percent of users under the age of 35. These users, he said, are digital natives who see cryptocurrency as a path to financial empowerment, especially given limited access to traditional banking services.

Beyond stablecoins, the SEC is reviewing proposals for digital asset exchange-traded funds (ETFs), pension-backed custodial wallets, and tokenised securities offered by licensed asset managers to institutional investors.