The Alliance for Economic Research and Ethics has faulted the International Monetary Fund’s warning that stablecoins threaten Nigeria’s monetary sovereignty.
The think tank group argued instead that the growing use of digital dollar-backed assets reflects deep economic problems within the country.
In a policy brief released on Tuesday, June 16, by its chairman, Dele Oye, the group described the IMF’s position as a misunderstanding of the realities driving Nigerians toward stablecoins such as USDT and USDC.
Pinnacle Daily earlier reported that the IMF, in its June 2026 Article IV Consultation on Nigeria, warned that the country had become one of the world’s most active crypto markets.
It stated specifically that the increasing use of dollar-pegged stablecoins was weakening the Central Bank of Nigeria’s (CBN) control over monetary policy.
The Brettonwood financial institution then recommended tighter regulations and closer compliance with standards set by the Financial Stability Board.
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The Alliance, however, argued that the IMF was focusing on the wrong problem.
“With respect to our friends in Washington, this is like prescribing sunglasses to a man whose house is on fire,” the group said.
It argued that Nigerians are turning to stablecoins because the naira has lost value and stability, not because of any special attraction to foreign technology.
It noted that inflation reached 34.19 per cent in mid-2024 and, although it eased to 15.93 per cent in May 2026 after the rebasing of the Consumer Price Index, it remains a major concern.
The group also pointed to the naira’s sharp depreciation, further noting that the currency fell to a record low of ₦1,717.50 to the dollar in November 2024.
The Alliance also defended stablecoins by highlighting their role in reducing the cost of remittances sent by Nigerians living abroad.
It cited that Nigeria received about $23 billion in diaspora remittances in 2025, while traditional money transfer services charged average fees of 8.4 per cent, far above the United Nations target of 3 per cent.
“When a nurse in London sends ₦500,000 to her mother in Ogbomoso… at a fraction of the traditional cost, that is not ‘digital dollarisation.’ That is economic justice,” the group said.
The report noted that stablecoin transaction fees are often around two per cent and that Nigeria recorded nearly $22 billion in stablecoin transactions between July 2023 and June 2024, representing 43 per cent of the total volume in sub-Saharan Africa.
The think tank also criticised government-backed alternatives to private stablecoins, citing the low adoption of the eNaira.
It said only 1.3 per cent of potential users had adopted the digital currency and that 98.5 per cent of wallets remained inactive.
It also described the rollout of the cNGN stablecoin as slow.
“You cannot sell naira stability to Nigerians who have lived its opposite,” the Alliance stated.
According to the group, the real threat to monetary sovereignty comes from “decades of fiscal indiscipline” and a situation in which debt servicing now consumes 53.2 per cent of federal revenue.
The group called for what it described as a Nigerian approach to the issue, centred on restoring confidence in the naira, adopting practical regulations and integrating stablecoins into the financial system rather than restricting them.
“The naira must become worth holding. Until then, Nigerians will hold whatever is,” the group said.
The Alliance also rejected what it described as complex international regulatory models, saying implementing them in Nigeria would be like “asking a village watchman to guard Fort Knox”.
It urged the apex bank to work with regulated exchanges to improve visibility into foreign exchange flows and require stablecoin providers to hold naira reserves in local banks.
The group maintained that stablecoins are a symptom rather than the cause of Nigeria’s economic challenges.
“The river does not flow because it is pushed; it flows because it has a destination,” the Alliance added. “The IMF sees stablecoins as a threat… We see them as a mirror reflecting the deeper failures of Nigerian macroeconomic management. The appropriate path is not to smash the mirror, but to repair the face it reflects.”
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X