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 unveiled a groundbreaking collaboration with the Securities and Exchange Commission (SEC) of Nigeria to establish a robust framework for digital currencies. This announcement, made during the Central Bank of Nigeria (CBN) governor’s annual lecture at Lagos Business School, signifies a significant shift in policy direction under President Bola Tinubu’s administration.
Under the leadership of President Tinubu, there has been a noticeable change in tone, with Governor Cardoso indicating a newfound openness towards digital assets. Regulators are now working together to develop a framework that fosters innovation while ensuring financial stability.
“We are currently engaged in a collaborative effort to ensure that all regulatory authorities can facilitate the development of a sustainable digital currency framework,” stated Cardoso.
Historically, Nigerian authorities maintained a hostile stance towards cryptocurrencies, with the CBN taking a particularly hardline approach. Former Governor Godwin Emefiele’s directive effectively prohibited financial institutions from engaging with crypto-related businesses.
This approach faced criticism for overreaching regulatory boundaries and encroaching on the SEC’s jurisdiction, causing a fragmented policy landscape that hindered innovation and left crypto entrepreneurs uncertain about the legal landscape.
Regulators Acknowledge Rapid Adoption
However, since President Tinubu took office on 29 May 2023, the CBN has adopted a more collaborative approach and delegated authority on crypto-related matters to the SEC.
Additionally, the CBN governor acknowledged that Nigerian regulators were caught off guard by the swift and widespread adoption of cryptocurrencies in the country. Recognizing the need for a deeper understanding of the digital asset landscape, authorities are now focused on implementing structured regulatory oversight to manage its growth effectively.
While the specifics of the new framework are yet to be disclosed, the collaboration between regulatory bodies signifies a shift towards a more unified and progressive approach to digital currencies. This realignment positions Nigeria as a key player in the global dialogue on regulated digital innovation.