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

*Seeks elimination of alleged multiple exchange rates

*Uwaleke urges caution on IMF’s prescription for additional tax measures

Ndubuisi Francis in Abuja and Dike Onwuamaeze in Lagos

The International Monetary Fund (IMF) has raised the alarm that the increasing use of United States dollar-denominated stablecoins in Nigeria poses risks to monetary sovereignty, potential‘digital dollarisation’, and other issues.According to the IMF, the growing use of stablecoins for cross-border transactions in Nigeria brings opportunities and risks.The IMF made this observation in its “2026 Article IV Consultation Staff Country Report on Nigeria,” where it also alleged that official actions taken by the Nigerian authorities had led to Multiple Currency Practices (MCPs), including multiple exchange rates over the past 12 months, and urged the Central Bank of Nigeria (CBN) to eliminate these multiple rates.

This is as the President of the Capital Market Academics of Nigeria (CMAN), Prof. Uche Uwaleke, has welcomed the latest IMF Article IV Consultation Report on Nigeria, but cautioned against adopting some of its recommendations, particularly those prescribing additional tax measures, including a possible hike in Value Added Tax (VAT), and their extension to petroleum products, among others.However, the CBN has explained that what the IMF viewed as MCPs were actually “not part of exchange rate determination but a cost-recovery fee.”