The Central Bank of Nigeria (CBN) has introduced a minimum paid-up capital requirement of ₦15 billion for companies issuing foreign currency-referenced stablecoins, including digital tokens pegged to the US dollar, under a new regulatory framework that took effect on November 5, 2026.
The requirement is contained in the CBN’s Regulations for the Operations of Non-Security Virtual Assets in Nigeria, issued through a circular dated November 5 and signed by Musa Jimoh, Director of the Payments System Policy Department.
Under Section 15.2 of the regulations, issuers of Class 2 stablecoins, which reference foreign currencies, must maintain at least ₦15 billion in paid-up capital upon entry and throughout their operations. The CBN also reserves the right to prescribe a higher amount.
The apex bank established a separate capital requirement of ₦10 billion for Class 1 stablecoins, which are digital tokens designed to maintain a one-to-one value with the naira and backed by eligible naira-denominated reserve assets.
Other providers of non-security virtual asset services, including relevant exchange, custody and payment service operators, are required to maintain at least ₦1 billion in paid-up capital.
The regulations specify that the ₦1 billion requirement must be additional to capital maintained under other licensing frameworks, including those of the Securities and Exchange Commission (SEC). Operators cannot use the same capital to satisfy both regulatory requirements.
The new framework also introduces stricter incorporation and operational conditions for stablecoin issuers. Under Section 7, applicants must be incorporated, or propose to incorporate, under Nigeria’s Companies and Allied Matters Act.
They must also maintain a principal place of business and a staffed physical office in Nigeria from which key management functions will be exercised.
Furthermore, issuers must demonstrate effective local management and supervisory capacity, including having a resident chief compliance officer and the ability to respond to regulatory directions without requiring prior approval from an overseas parent company.
The CBN has also prohibited algorithmic stablecoins that depend primarily on adjustments to supply and demand, rather than adequate reserve backing, to maintain their value.
For platform-facilitated peer-to-peer cryptocurrency transactions involving naira payments, the regulations require providers to obtain the relevant approval and verify customers’ identities. Platforms must also ensure that the name and Bank Verification Number associated with the naira payment account match the verified customer before releasing or crediting regulated tokens.
The framework covers stablecoin issuance, conversion, custody, transfers, remittances and other virtual asset payment services conducted in Nigeria or directed at Nigerian users.
The CBN said the regulations are intended to protect consumers, strengthen financial stability, improve oversight of digital payment instruments and address risks associated with foreign exchange movements, money laundering and the management of customer funds.
Existing operators are also subject to transitional registration and licensing requirements under the new framework.
