The International Monetary Fund (IMF) has called on Nigeria to bring stablecoins and other crypto-asset activities under formal regulatory oversight as part of broader efforts to strengthen financial stability.
The recommendation was contained in the IMF’s latest Article IV Consultation report on Nigeria, released following the Executive Board’s review on June 1.
According to the Fund, expanding oversight of digital assets is becoming increasingly important as Nigeria’s cryptocurrency market continues to grow, driven by retail adoption, cross-border transactions and demand for inflation hedging tools.
The IMF warned that crypto assets could pose risks to the wider financial system if left outside existing supervisory frameworks. It urged Nigerian authorities to strengthen regulation and monitoring of stablecoins and related digital asset activities.
Beyond crypto regulation, the Fund recommended maintaining a tight monetary policy stance until inflation is firmly under control and encouraged the Central Bank of Nigeria to continue its transition toward an inflation-targeting framework.
The IMF also supported Nigeria’s flexible exchange rate regime, called for the gradual removal of remaining foreign exchange restrictions and urged regulators to accelerate the implementation of Basel III banking standards.
The report highlighted other areas requiring attention, including rising non-performing loans, sovereign debt exposure, infrastructure development, governance reforms and improvements in macroeconomic data collection.
