The Central Bank of Nigeria has introduced new licensing and capital requirements for stablecoin issuers, setting a minimum paid-up capital of approximately $11.1 million for foreign currency-backed stablecoins and $7.4 million for naira-backed stablecoins. The new framework also prohibits algorithmic stablecoins and establishes separate licensing categories for different types of virtual asset providers.
The CBN issued its Regulations for the Operations of Non-Security Virtual Assets on November 5, 2026, covering stablecoin issuers, cryptocurrency exchanges, custodians, wallet providers, payment processors, and other virtual asset service providers. Under the framework, foreign stablecoin issuers must establish locally incorporated Nigerian entities and obtain a Class 2 Foreign Currency Issuer License before offering, distributing, or redeeming their tokens in the country.
Issuers must also obtain written regulatory approval for each stablecoin, covering its classification, reference currency, reserve arrangements, name, ticker, and supported blockchain networks. The regulations further impose anti-money laundering (AML) and counter-terrorism financing (CTF) obligations. These include customer due diligence, sanctions screening, transaction monitoring, and compliance with the Financial Action Task Force's Travel Rule.
These requirements extend to peer-to-peer services, remittance channels, and custodial wallets. Importantly, holding an existing license in another jurisdiction does not exempt a foreign issuer from meeting Nigeria's local regulatory requirements.
The new framework introduces stricter entry requirements for stablecoin businesses operating in Nigeria, particularly foreign issuers facing significant capital and incorporation obligations. By prohibiting algorithmic stablecoins and requiring regulatory approval for individual tokens, the CBN is placing greater emphasis on issuer accountability, reserve arrangements, and oversight of digital currency operations.
