- Nigeria’s central bank introduced stablecoin licensing regulations effective November 5, 2026.
- The regulations prohibit algorithmic stablecoins and fiat-referenced tokens primarily backed by cryptocurrencies.
- Naira stablecoin issuers must maintain at least ₦10 billion in paid-up capital.
- Foreign-currency stablecoin issuers must maintain at least ₦15 billion in paid-up capital.
- Licensed stablecoin issuers must maintain full reserve backing and an additional 2% collateral buffer.
- Existing operators have 30 days to register and 180 days to submit licensing applications.
Nigeria’s central bank introduced stablecoin licensing rules and banned algorithmic tokens on November 5, 2026. The regulations establish capital, reserve and redemption requirements for issuers serving the Nigerian market.
The Central Bank of Nigeria’s regulations cover stablecoins, deposit money tokens and related virtual asset services. They also regulate exchanges, custody, payments, remittances and platform-facilitated peer-to-peer services.
Under Section 2.2, the CBN prohibits stablecoins maintained primarily through algorithmic supply adjustments. Other bans cover crypto-backed fiat tokens, sanctioned tokens and stablecoins lacking enforceable par redemption rights.
Nigeria sets ₦15 billion capital requirement for foreign stablecoins
The framework divides permitted stablecoins into two categories based on their reference currencies. Class 1 stablecoins must track the Nigerian naira and maintain full backing through eligible naira assets. Their issuers must maintain at least ₦10 billion in paid-up capital.
Class 2 stablecoins reference foreign currencies, including the U.S. dollar. Issuers must maintain at least ₦15 billion in paid-up capital. The CBN also requires locally incorporated issuers for foreign-currency stablecoins offered to Nigerian retail customers. Foreign regulatory approval alone cannot replace a Nigerian licence or token approval.
However, the regulations provide a limited exception for certain overseas-issued stablecoins. The CBN may recognise these tokens for approved wholesale cross-border settlements. Such arrangements cannot serve Nigerian retail customers. Other regulated virtual asset service providers face a minimum capital requirement of ₦1 billion. Companies already licensed by Nigeria’s Securities and Exchange Commission must maintain this capital separately.
Stablecoin issuers face stricter reserve and redemption requirements
Section 24 requires licensed issuers to maintain reserves covering all outstanding stablecoin obligations. Issuers must also maintain a separate collateral buffer equal to at least 2% of circulating tokens’ par value.
At least 40% of each reserve pool must comprise cash or qualifying high-quality liquid assets. Non-cash assets counted toward this requirement generally cannot exceed six months in remaining maturity. Naira stablecoin issuers face an additional requirement. They must deposit at least 20% of their reserve pool directly with the CBN. That deposit cannot count toward the separate 40% liquid-asset requirement.
For broader industry context, Circle’s third-quarter financial results were reported by CoinCentral on November 4. The coverage examined the finances of USDC’s issuer, separately from Nigeria’s regulatory changes.
The Nigerian framework also requires issuers to honour valid redemption requests at par. Payments must normally be completed by the end of the following business day. During qualifying stress events, the CBN may approve an extension of up to five business days. Standard redemptions cannot attract fees, while issuers cannot offer interest or yield for holding stablecoins.
The framework also covers institutional settlement and payment infrastructure. Separately, Consensys introduced a bridgeless transaction network for institutions, according to CoinCentral’s November 3 coverage. That development concerns cross-ledger settlement rather than Nigeria’s licensing process.
Existing crypto operators receive 180-day transition period
Section 54 provides a transition process for businesses already operating when the regulations took effect. Existing operators must register with the CBN within 30 calendar days. They must begin supervisory reporting within 60 days, unless the regulator requires earlier reporting.
Companies must also submit complete licensing applications within 180 calendar days. Anti-money-laundering and counter-terrorist-financing obligations apply from commencement. During the transition, businesses may continue operating only at their existing scale and under applicable interim conditions. Existing foreign-currency stablecoin arrangements require express CBN permission to maintain access during assessment.
The regulations also extend oversight to wallet providers, custodians, payment gateways and peer-to-peer platforms. These businesses must obtain approvals corresponding to their regulated activities. In separate market coverage, CoinCentral reported expanding Solana stablecoin activity on November 3. Nigeria’s framework assesses tokens by their economic substance, function, and risks rather than their underlying blockchain. The CBN’s rules do not displace the SEC’s jurisdiction over securities and investment products. Firms conducting regulated payment activities must still obtain applicable central bank permissions.
