IMF Warns of Risks from US Dollar Stablecoins in Nigeria

The International Monetary Fund (IMF) has raised concerns regarding the growing use of US dollar-denominated stablecoins in Nigeria, indicating potential risks to the nation's monetary sovereignty. This observation was made in the context of the IMF's 2026 Article IV consultation report.

The IMF urged the Central Bank of Nigeria (CBN) to eliminate multiple currency practices (MCP), which include various exchange rates that have been in place over the past 12 months. Prof.

Uch Uwalek, a capital market academic, welcomed the IMF's report but cautioned against adopting additional tax measures, such as a possible hike in Value Added Tax (VAT) on petroleum products. The IMF identified two sources of the MCP related to the CBN's foreign exchange sales.

It recommended that the CBN phase out capital flow management measures as macroeconomic conditions allow, while also emphasizing the need for regulatory oversight of stablecoin arrangements to mitigate risks associated with cross-border transactions.