By Obah Sylva
The Central Bank of Nigeria (CBN) has introduced minimum paid-up capital requirements of ₦15 billion for foreign-currency stablecoin issuers and ₦10 billion for naira-backed stablecoin issuers under new rules for non-security virtual assets.
Related: Circle’s expansion of USDC and stablecoin infrastructure
Key Highlights
- Foreign-currency stablecoin issuers must maintain at least ₦15 billion in paid-up capital.
- Naira-referenced stablecoin issuers must maintain at least ₦10 billion.
- Issuers must be Nigerian-incorporated entities and obtain the applicable CBN licence.
- Existing operators have 180 days to apply for licences or authorisations, with interim registration and reporting deadlines.
- Algorithmic stablecoins are prohibited under the regulations.
- Issuers face reserve, redemption, disclosure and anti-money-laundering obligations.
The CBN released the Regulations for the Operations of Non-Security Virtual Assets in Nigeria on Thursday, November 5, 2026. The framework covers the issuance, distribution, conversion, custody, transfer, redemption and settlement of stablecoins and Deposit Money Tokens.
Foreign and Naira Stablecoin Issuers Face Separate Capital Rules
Under the framework, a Class 2 issuer of foreign-currency-referenced stablecoins must maintain minimum paid-up capital of ₦15 billion. A Class 1 issuer of naira-referenced stablecoins must maintain at least ₦10 billion. The CBN may prescribe a higher amount.
Foreign issuers, including companies behind tokens such as USDT and USDC, must operate through Nigerian-incorporated entities and obtain the required local licence before offering or distributing tokens in the country. Regulatory approval in another jurisdiction does not remove the Nigerian requirements.
The rules establish a risk-based supervisory framework for virtual assets used for payments, money transfers and settlements. The CBN said the framework is intended to protect users, support financial stability and strengthen oversight of capital flows and foreign-exchange dynamics.
Stablecoins are digital assets designed to maintain a relatively stable value against a traditional currency, commonly the US dollar. Businesses and individuals use them for cross-border payments and settlements, although the CBN has warned that their use can raise concerns about financial stability, monetary policy, consumer protection and foreign-exchange management.
Reserve, Redemption and Reporting Requirements
Stablecoin issuers must maintain reserves to back their tokens and arrangements that allow customers to redeem their holdings. The regulations require issuers to make reserve disclosures and submit monthly reserve attestations to demonstrate that the tokens are adequately backed.
The CBN may also impose additional capital and liquidity requirements where an issuer’s operations or risk profile could affect Nigeria’s financial system.
The rules prohibit algorithmic stablecoins, which rely primarily on mathematical models or supply adjustments rather than full backing by eligible reserve assets. The regulations also prohibit certain tokens that reference fiat currencies but are backed mainly by other virtual assets or do not provide enforceable redemption rights.
Existing Operators Given 180 Days to Apply
Existing operators have 180 calendar days from the commencement of the regulations to apply for the appropriate licence or authorisation. During the transition period, they must register with the CBN within 30 days, meet anti-money-laundering requirements from commencement and begin supervisory reporting within 60 days or an earlier date set by the bank.
Operators that do not submit a complete application within the transition period must cease the relevant activities until they obtain the required licence or authorisation. Continued operations during the transition remain subject to the CBN’s interim conditions.
Virtual Asset Service Providers must also carry out customer due diligence, verify customers and comply with applicable Travel Rule requirements for information accompanying virtual-asset transfers.
Tether, Circle and Nigeria’s Stablecoin Market
The new framework comes as international stablecoin companies show interest in Nigeria and other African markets. Tether sought to recruit a Nigeria expansion manager in August, while Circle appointed Gillian Darko, a former strategy executive at Yellow Card, as its Vice-President and Head of Africa.
The CBN also opened a second cohort of its regulatory sandbox in August, including a track for virtual-asset service providers, stablecoin, payment, settlement, custody and wallet solutions to undergo supervised testing.
Read also:
- Breaking: Circle Launches Arc Blockchain Mainnet With USDC as Native Gas Token
- CBN Opens Applications for Second Cohort Of Regulatory Sandbox Programme
New Rules Set Local Licensing Framework
The regulations create a licensing and compliance framework for stablecoin issuers and other virtual-asset providers operating in Nigeria. Issuers must meet capital, reserve, redemption, reporting and customer-protection requirements to operate under the new regime.
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