The Central Bank of Nigeria has introduced new licensing and capital requirements for stablecoin issuers requiring foreign-currency-backed token providers to maintain at least $11 million in paid-up capital and banning algorithmic stablecoins.

The Central Bank of Nigeria (CBN) issued the Regulations for the Operations of Non-Security Virtual Assets on November 5 2026 establishing separate licensing categories for naira-backed and foreign-currency-backed stablecoins.

 

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The rules also cover

  • cryptocurrency exchanges,

  • custodians,

  • wallet providers,

  • payment processors, and

  • other virtual asset service providers.

Under the framework, issuers of foreign-currency stablecoins must maintain minimum paid-up capital of approximately $11.1 million while naira-backed stablecoin issuers face a requirement of approximately $7.4 million.

 

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Foreign issuers must establish Nigerian-incorporated entities and obtain a Class 2 Foreign Currency Issuer Licence before offering distributing or redeeming their tokens in the country.

Among the requirements for issuers would be obtaining written approval for each token covering its:

  • classification

  • reference currency

  • reserve arrangements

  • name

  • ticker, and

  • supported blockchain networks

as per the circular.

 

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Other requirements involve compliance enforcement with anti-money laundering (AML) and counter-terrorism financing (CTF) obligations that include:

  • customer due diligence

  • sanctions screening

  • transaction monitoring

  • Travel Rule compliance

across P2P services, remittance channels, and all custodial wallets.

Existing licences obtained in other jurisdictions will not exempt them from the local requirements.

 

 

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