The International Monetary Fund has urged Nigeria to incorporate stablecoins and other crypto-asset activities into its regulatory framework.

The recommendation is part of wider measures designed to strengthen financial stability and protect recent macroeconomic improvements.

This was stated in the IMF’s latest Article IV Consultation report on Nigeria, which was concluded by its Executive Board on June 1, 2026 and published on Tuesday, June 9, 2026.

In the report, IMF Directors stressed the need to strengthen supervisory frameworks to include stablecoins and broader crypto-asset activities, reflecting increasing concern over potential risks spilling into the formal financial system.

“Directors stressed the importance of further strengthening supervision and bringing stablecoin and other crypto-asset activities into the regulatory perimeter,” the report stated.

The warning places digital assets among other systemic vulnerabilities highlighted by the Fund, including rising non-performing loans, the sovereign-bank nexus, and exposure to volatile portfolio inflows.

The IMF also observed that Nigeria’s financial system remains broadly resilient, supported by recent bank recapitalisation measures. However, it cautioned that sustained vigilance is needed as financial innovation continues to expand.

Beyond digital assets, the Fund urged Nigerian authorities to maintain a tight, data-dependent monetary policy stance until inflation is firmly anchored, while backing the Central Bank of Nigeria’s shift toward an inflation-targeting framework.

Directors also endorsed Nigeria’s flexible exchange rate regime, while noting that foreign exchange interventions may still be necessary in specific circumstances.

On capital flows, the Fund recommended a gradual reduction in dependence on portfolio inflows due to rollover risks, alongside the phased removal of remaining exchange restrictions, capital flow management measures, and multiple currency practices as conditions permit.

The IMF further called for faster implementation of Basel III standards, including countercyclical capital buffers and liquidity coverage ratios, as part of broader efforts to reinforce the resilience of Nigeria’s banking sector.

The IMF also called for accelerated adoption of Basel III standards, including countercyclical capital buffers and liquidity coverage ratios, as part of broader efforts to strengthen the resilience of Nigeria’s banking system.

It cautioned that rising non-performing loans, alongside deepening linkages between banks and sovereign exposures, warrant closer and more proactive supervisory oversight.

For regulators, the combined push for banking reforms and crypto-asset oversight points to a broader move toward integrated financial risk monitoring, especially as digital assets increasingly intersect with traditional finance through payment platforms, fintech firms, and custodial services.