Nigeria’s central bank has moved stablecoins and other digital assets into a formal licensing regime, setting a minimum capital requirement of N15 billion (about $11 million) for companies issuing tokens pegged to foreign currencies such as the US dollar.
The Regulations for the Operations of Non-Security Virtual Assets in Nigeria, issued on 5 November and signed by Musa Jimoh, director of the Central Bank of Nigeria’s payments system policy department, took effect the same day. The framework covers stablecoin issuers, cryptocurrency exchanges, custodians, wallet providers and peer-to-peer trading platforms serving Nigerian users, including firms based overseas if their services are directed at Nigerians.
Under the rules, stablecoins are split into two classes. Naira-referenced tokens, known as Class 1, require issuers to hold at least N10 billion in paid-up capital. Foreign-currency-referenced tokens, Class 2, face the higher N15 billion threshold and may only be issued by a Nigerian-incorporated entity holding a Class 2 licence from the bank. Other virtual asset service providers must hold at least N1 billion.
Issuers must back their tokens with reserve assets equal to at least 100 per cent of outstanding obligations, plus a 2 per cent buffer, with at least 40 per cent of reserves held in cash or high-quality liquid assets. Algorithmic stablecoins are prohibited outright. Issuers must also submit monthly reserve attestations and honour redemption at par within one business day.
Existing operators have 180 days to apply for the relevant licence and must register with the central bank within 30 days. Operating without a licence carries a fine of at least N100 million, plus N1 million for each day the breach continues.
The move is the most significant step yet in Nigeria’s approach to digital assets. The country is one of the world’s largest markets for cryptocurrency use, with dollar-pegged stablecoins widely used as a store of value and for remittances as the naira has weakened. The central bank said the framework is designed to protect financial stability, support monetary policy and foreign-exchange management, and guard against money laundering and consumer harm.
Transfers of $1,000 or more in virtual assets will also require service providers to share sender and recipient information under the Financial Action Task Force’s travel rule. Some details of the transition timetable are still emerging, with further supervisory guidance expected.
Sources: BusinessDay (https://businessday.ng/business-economy/article/explainer-what-cbns-new-crypto-rules-mean-for-your-wallet-p2p-trades-and-stablecoins/?amp) and Economy Post (https://economypost.ng/data/crypto/cbn-imposes-n15bn-capital-requirement-on-dollar-stablecoin-issuers/2026/11/06/).
