ABUJA, July 25 (Xinhua) -- Nigeria is ready to open its market to stablecoin businesses, as long as they comply with the country's regulations, the main regulatory body for the capital market has announced.

Emomotimi Agama, director general of the Securities and Exchange Commission, said on Thursday at a capital market summit in the southwestern state of Lagos, the country's economic hub, that the Nigerian digital economy is rapidly evolving, dynamic, youthful, and increasingly decentralized, while emphasizing the critical role of stablecoins in facilitating secure, borderless transactions.

"Across the continent, freelancers, traders, and businesses are increasingly opting for stablecoin payments to hedge against volatility, a trend significantly amplified by the naira's fluctuations, which have driven exponential growth in demand for dollar-backed digital assets," Agama said.

He stressed the importance of building an Africa-centric regulatory framework, noting that Africa needs localized solutions that reflect local market conditions, demographic realities, and development priorities.

Agama addressed common concerns that regulation could stifle innovation, explaining that Nigeria's regulatory sandbox continues to attract interest from both local and international startups.

"We have onboarded some firms focused on stablecoin applications, all while ensuring compliance with core risk management principles," the official said while envisioning a positive future for Nigeria in the digital financial landscape.

"We want to see global capital flowing into Lagos as the stablecoin hub of the Global South. This is not just finance, this is nation-building," he added. ■