The Central Bank of Nigeria (CBN) has introduced a minimum capital requirement of ₦15 billion for companies seeking to issue foreign currency-denominated stablecoins in Nigeria, tightening regulatory oversight of the country’s digital asset market.
The new rule forms part of the CBN’s broader regulatory framework for stablecoins and other non-security virtual assets, which took effect on November 5, 2026.
CBN introduces different capital requirements for stablecoin issuers
Under the new regulations, stablecoin issuers are classified into two categories based on the currencies their digital tokens reference.
Companies issuing foreign currency-backed stablecoins, including dollar-pegged tokens such as Tether (USDT) and USD Coin (USDC), fall under Class 2 and must maintain a minimum paid-up capital of ₦15 billion.
Issuers of naira-backed stablecoins, classified as Class 1, are required to maintain at least ₦10 billion in paid-up capital.
Other companies providing regulated non-security virtual asset services, including cryptocurrency exchanges, wallet providers and related platforms, must maintain a minimum capital of ₦1 billion.
The CBN also reserves the right to impose higher capital requirements depending on operators’ transaction volumes, business activities, redemption obligations and exposure to financial risks. Punch Newspapers +1
Foreign stablecoin issuers must obtain Nigerian licences
The regulations require foreign currency stablecoin issuers targeting Nigerian customers to operate through locally incorporated entities and obtain the appropriate CBN licence.
Companies cannot rely solely on licences obtained in other countries to operate in Nigeria.
The new framework also requires stablecoin issuers to obtain separate regulatory approval for each token they intend to introduce.
Additionally, the CBN stipulates that the required capital must remain separate from customer funds, stablecoin reserves and operational liquidity.
CBN strengthens reserve and redemption requirements
Beyond the capital requirements, the apex bank has introduced stricter rules governing the assets backing stablecoins.
Issuers must maintain adequate reserves to cover their outstanding tokens and provide mechanisms that allow holders to redeem their stablecoins at face value.
The regulations also prohibit algorithmic stablecoins that rely primarily on supply adjustments rather than sufficient reserve assets to maintain their value.
The measures are intended to strengthen financial stability, improve consumer protection and address potential risks associated with the growing use of digital currencies.
Existing operators given 180 days to comply
Existing virtual asset operators have been given 180 days to apply for the appropriate licences or authorisations under the new framework.
They must also meet interim registration, reporting and compliance requirements within the timelines prescribed by the CBN.
The regulations cover stablecoin issuance, cryptocurrency exchanges, digital wallets, custody services, remittances, payment processing and certain platform-facilitated peer-to-peer transactions.
The CBN said the framework would strengthen oversight of emerging digital payment instruments and safeguard Nigeria’s financial system.
