The Central Bank of Nigeria (CBN) has introduced a minimum paid-up capital of ₦15 billion for companies issuing foreign-currency-referenced stablecoins, including dollar-pegged tokens. The requirement is in its Regulations for the Operations of Non-Security Virtual Assets in Nigeria, effective November 5, 2026.
Beyond capital, the rules determine who can serve Nigerian users: local licensing is the default, with a narrow wholesale exception for foreign-issued tokens.
Local licensing becomes the default
Class 2 issuers must maintain the ₦15 billion minimum throughout their operations. The CBN may require more based on business scale, transaction volumes, redemption obligations and technology risks.
Class 1 naira stablecoin issuers need ₦10 billion. Providers of other non-security virtual asset services need ₦1 billion, additional to applicable Securities and Exchange Commission capital requirements.
A Class 2 stablecoin must be issued through a Nigerian-incorporated company with a CBN Foreign Currency Issuer Licence. A foreign company may sponsor or affiliate with the local issuer, but the Nigerian entity remains responsible for compliance. An overseas licence alone is insufficient.
There is a narrow exception for offshore-issued tokens. The CBN may recognise them for wholesale cross-border transactions through an authorised dealer or specifically approved licensee. The foreign issuer must meet equivalent regulatory standards and provide enforceable redemption rights. This route excludes Nigerian retail customers.
The ₦15bn is not the only financial hurdle
The required capital is separate from reserve assets, customer funds and operational liquidity. Class 2 issuers must also maintain liquidity for Nigerian payment and redemption obligations. The calculation covers a US$10 million benchmark, 15 per cent of Nigeria-linked liabilities and projected needs under 30 days of stressed outflows.
All licensed issuers must hold eligible reserves worth at least their outstanding stablecoin obligations, plus a two per cent buffer. They cannot mint tokens before receiving equivalent reserves. Holders can redeem at face value, generally by the end of the next business day after a valid request. Standard redemptions must be free.
What the rules could mean for Nigerians
The capital, liquidity and compliance costs could make Nigeria harder to enter for smaller stablecoin businesses, potentially reducing the number of direct providers. This is a possible market consequence, not an outcome confirmed by the CBN.
For users, stronger backing and redemption rights could improve protection against issuer failure. However, the regulations do not guarantee that every foreign stablecoin will remain available through every exchange or wallet. Access will depend on approved tokens, licensed issuers and authorised distributors.
Back Story: From banking restrictions to direct supervision
In February 2021, the CBN restricted banks from operating accounts for cryptocurrency service providers. In December 2023, it issued guidelines allowing regulated financial institutions to provide banking services to eligible virtual asset providers under specified conditions. Central Bank of Nigeria
The November 2026 regulations move from banking rules to direct oversight of issuance, reserves, liquidity and redemption. Existing operators must register within 30 days, begin supervisory reporting within 60 days and apply for a licence within 180 days. They may continue only at their existing scale and subject to CBN conditions. Existing Class 2 arrangements need express interim permission. Central Bank of Nigeria
