IMF: Increasing Use of US Dollar-denominated Stablecoins in Nigeria Raises Risks to Monetary Sovereignty

The International Monetary Fund has warned that Nigeria’s growing use of US dollar-denominated stablecoins for cross-border transactions threatens monetary sovereignty and risks “digital dollarisation.” In its 2026 Article IV Consultation report, the IMF also alleged that Central Bank of Nigeria actions created multiple currency practices, including multiple exchange rates over the past year. It urged the CBN to eliminate these rates.

The CBN countered that the charges the IMF flagged are “not part of exchange rate determination but a cost-recovery fee.” Capital Market Academics of Nigeria President Prof. Uche Uwaleke welcomed the report but cautioned against adopting IMF recommendations for additional tax measures, including a possible VAT hike. “Staff encourages the authorities to eliminate these official actions,” the IMF stated, though the CBN insisted its practices affect only a small share of total turnover.