Africa Stablecoin Network Supports CBN Push to Modernize Nigeria’s Cross-Border Payments

ASN Urges Coordinated Regulatory Framework to Harness Stablecoins for Trade Efficiency

The Africa Stablecoin Network (ASN) has thrown its weight behind Olayemi Cardoso of the Central Bank of Nigeria, advocating for urgent modernization of Nigeria’s cross-border payment systems using stablecoin technology.

In a statement released on Tuesday, ASN called on Nigerian regulators to adopt a coordinated framework that leverages digital assets to address the inefficiencies plaguing international transactions, particularly those affecting micro, small, and medium enterprises (MSMEs).

Governor Cardoso, speaking at the Intergovernmental Group of Twenty-Four (G-24) Technical Groups Meeting, described global remittance systems as “too slow, too costly, and too fragmented,” noting that settlement lags and costs exceeding 6 percent prevent African businesses from fully participating in international trade.

The ASN argued that stablecoins—digital currencies pegged to stable reserves like the U.S. dollar—could drastically reduce these frictions. Nathaniel Luz, President of ASN, emphasized that while stablecoins may be a luxury in Western markets, they are a lifeline for Africa, offering practical solutions to payment delays and trade bottlenecks.

“Traditional cross-border transactions that currently take two to five days could be settled within minutes on blockchain-based systems. Remittance costs could drop from 5–7 percent to below 1 percent,” Luz said.

The network highlighted the potential benefits for Nigeria’s MSMEs, which could see improved cash flow, faster payments to suppliers, and expanded participation in African Continental Free Trade Area (AfCFTA) commerce. ASN also stressed that current banking delays act as a hidden tax on businesses, reducing competitiveness.

While the CBN has expressed caution over currency substitution and monetary sovereignty risks, ASN insisted that a well-designed regulatory framework, rather than delaying innovation, is the key to safely integrating stablecoins. The group cited the Investment and Securities Act 2025, which empowers the Securities and Exchange Commission Nigeria to regulate digital assets, providing legal clarity to protect local markets.

Dr Emomotimi Agama, SEC Director-General, previously confirmed that Nigeria welcomes stablecoin ventures that operate under guidelines safeguarding local markets and empowering citizens. ASN noted that the SEC’s regulatory sandbox is already attracting both local and international fintech firms.

Luz stressed that clear regulation would help the government monitor currently unregulated financial flows and prevent risks to monetary sovereignty. He called for a national strategy uniting the CBN, SEC, Nigerian Financial Intelligence Unit (NFIU), and Nigeria Data Protection Commission (NDPC) to ensure that innovation and oversight advance in tandem.

ASN concluded that proactive, forward-looking regulation is essential for Nigeria to set a continental benchmark for using digital currencies to support economic growth, stabilize macroeconomics, and modernize cross-border commerce.