The new regulation requires foreign-currency-backed stablecoin issuers to maintain ₦15 billion in paid-up capital, while naira-backed stablecoin issuers face a ₦10 billion threshold.
The Central Bank of Nigeria (CBN) has introduced a minimum paid-up capital requirement of ₦15 billion (approximately $11.12 million) for companies seeking to issue foreign-currency-backed stablecoins in Nigeria, marking a significant development in the country’s evolving cryptocurrency and digital payments regulatory landscape.
The requirement is contained in the CBN’s newly released Regulations for the Operations of Non-Security Virtual Assets in Nigeria, dated November 5, 2026.
Under Section 15.2 of the regulation, companies classified as Class 2 Licensed Issuers, responsible for issuing foreign-currency-referenced stablecoins, must maintain a minimum paid-up capital of ₦15 billion or any higher amount subsequently prescribed by the apex bank.
Using the official Nigerian Foreign Exchange Market (NFEM) exchange rate of approximately ₦1,348.74 to the US dollar as of November 5, 2026, the capital requirement translates to approximately $11.12 million.
The regulation introduces a differentiated capital structure for stablecoin issuers and other virtual asset service providers, reflecting the CBN’s intention to strengthen financial stability, improve consumer protection and establish stronger oversight of digital financial instruments operating within Nigeria.
Different Capital Requirements for Stablecoin Issuers
Beyond the ₦15 billion requirement for foreign-currency-backed stablecoin issuers, the CBN has established separate capital thresholds for other categories of operators.
The requirements include:
- Foreign-currency-backed stablecoin issuers (Class 2): ₦15 billion (approximately $11.12 million).
- Naira-backed stablecoin issuers (Class 1): ₦10 billion (approximately $7.41 million).
- Other non-security virtual asset service providers: ₦1 billion (approximately $741,433).
These requirements distinguish companies issuing stablecoins from businesses providing other virtual asset services, including regulated exchange, custody, wallet and payment-related services.
The CBN also clarified that the prescribed capital requirements must be maintained separately from stablecoin reserves, customer funds, operational liquidity and other applicable regulatory deposits.
This means companies issuing stablecoins cannot use the same funds to satisfy their minimum capital requirements and the reserve obligations backing tokens in circulation.
Foreign Stablecoin Issuers Face Additional Regulatory Requirements
The new framework introduces additional requirements for foreign-currency-backed stablecoin issuers seeking to access the Nigerian market.
Under the regulations, foreign issuers whose tokens are offered, marketed, distributed or made available to Nigerians must comply with the applicable Nigerian incorporation, licensing and authorisation requirements.
A licensed issuer must be a Nigerian-incorporated entity holding the appropriate CBN licence.
The framework also establishes additional operational, governance, reserve management, redemption, reporting and compliance obligations for Class 2 stablecoin issuers.
These provisions could have significant implications for international stablecoin companies, particularly operators behind widely used dollar-pegged digital assets such as Tether’s USDT and Circle’s USDC, should they seek to issue and formally operate under the Nigerian regulatory framework.
Stricter Reserve and Redemption Requirements
Beyond the capital requirement, the CBN has introduced stricter rules governing the backing and redemption of stablecoins.
The framework requires licensed issuers to maintain eligible reserve assets equivalent to at least 100 per cent of their outstanding stablecoin obligations, alongside an additional 2 per cent reserve buffer.
Stablecoin issuers are also required to establish appropriate redemption arrangements, allowing holders to redeem their tokens at face value under the prescribed conditions.
The regulation further restricts algorithmic stablecoins that rely primarily on supply adjustments rather than adequate reserve assets to maintain their value.
These measures are intended to reduce the risks associated with insufficient reserves, issuer insolvency and difficulties in redeeming digital assets.
Implications for Nigeria’s Cryptocurrency and Fintech Ecosystem
The new capital requirement could significantly reshape Nigeria’s stablecoin market, particularly for international issuers considering direct participation in the country’s digital financial services industry.
With a minimum capital threshold of approximately $11.12 million for foreign-currency stablecoin issuance, smaller companies and emerging blockchain startups may face considerable barriers to entering the market.
However, the development could also create opportunities for well-capitalised Nigerian fintech companies, financial institutions and blockchain infrastructure providers seeking to participate in regulated digital asset issuance and payment infrastructure.
The regulatory framework may encourage greater institutional participation, strengthen confidence in stablecoin-backed payment systems and provide clearer operational standards for businesses operating within Nigeria’s digital asset economy.
For international stablecoin issuers, the new requirements could influence decisions about establishing Nigerian subsidiaries, developing local partnerships and committing additional resources to the Nigerian market.
Transition and Compliance
The CBN’s new regulations took effect on November 5, 2026.
The framework also establishes transition and compliance arrangements for existing operators, requiring affected businesses to engage with the regulator and obtain the appropriate licences or authorisations within the prescribed timelines.
The new framework covers stablecoin issuance, virtual asset exchanges, custody, wallets, payment gateways, remittances, transfers and platform-facilitated peer-to-peer transactions, among other regulated activities.
Importantly, the ₦15 billion minimum capital requirement is specifically directed at foreign-currency-backed stablecoin issuers and should not be interpreted as a blanket capital requirement for every cryptocurrency exchange, blockchain startup or virtual asset company operating in Nigeria.
As Nigeria continues to expand its regulatory framework for emerging financial technologies, the latest CBN requirements represent another significant step towards establishing a more structured and institutionally supervised digital asset ecosystem.
Source: Central Bank of Nigeria, Regulations for the Operations of Non-Security Virtual Assets in Nigeria, November 5, 2026.
