Nigerian Central Bank Governor Olayemi Cardoso announced collaboration with the Securities and Exchange Commission (SEC) of Nigeria to create a sustainable digital currency framework.
Collaboration on a Sustainable Digital Currency Framework
The Nigerian Central Bank Governor, Olayemi Cardoso, has revealed that the apex bank is collaborating with the Securities and Exchange Commission (SEC) of Nigeria to develop a sustainable framework for digital currencies. The revelation, delivered during the Central Bank of Nigeria (CBN) governor’s annual lecture at Lagos Business School, reflects a broader policy reversal under President Bola Tinubu’s administration.
Under the Tinubu government, the tone has changed, and Cardoso’s remarks suggest a new openness to digital assets, with regulators now seeking to “midwife” a framework that balances innovation with financial stability.
“We are deeply in collaboration to ensure that all the different regulatory authorities can midwife the process that is sustainable with respect to digital currency,” Cardoso said.
Until early 2023, Nigerian authorities maintained a staunchly adversarial stance toward cryptocurrencies, with the CBN seemingly leading the charge. Under the leadership of former Governor Godwin Emefiele, the CBN issued a directive that effectively barred financial institutions from servicing crypto-linked businesses.
This aggressive posture sparked widespread criticism and allegations that the CBN was overstepping its regulatory boundaries and encroaching on the SEC’s jurisdiction, which had previously signaled a more measured approach to digital assets. The apparent turf war between the two regulators created a fragmented policy environment, stifling innovation and leaving crypto entrepreneurs in legal limbo.
Regulators Acknowledge Rapid Adoption
However, since 29 May 2023, when Tinubu assumed office, the CBN has stepped back from its aggressive posture and has largely ceded authority over crypto-related issues to the SEC.
Meanwhile, a local report quotes the CBN governor admitting that Nigerian regulators were initially caught off guard by the rapid and widespread adoption of cryptocurrencies across the country. He noted, however, that authorities have since come to recognize the urgency of developing a deeper understanding of the digital asset landscape and implementing structured regulatory oversight to manage its growth responsibly.
Although the specifics of the new framework remain undisclosed, the collaboration between the regulators signals a shift toward a more unified and forward-looking approach to digital currencies. This renewed regulatory alignment also positions Nigeria as an emerging contender in the global conversation on regulated digital innovation.