The Central Bank of Nigeria (CBN) has introduced minimum paid-up capital requirements of N15 billion for foreign currency-backed stablecoin issuers and N10 billion for naira-referenced stablecoin issuers as part of new regulations governing non-security virtual assets in the country.
The requirements are contained in the apex bank’s Regulations for the Operations of Non-Security Virtual Assets in Nigeria, issued through a circular dated November 5, 2026, and signed by Musa H. Jimoh, Director of the Payments System Policy Department.
Under Section 15.2 of the regulations, the CBN stated: “A Class 2 Licensed Issuer shall maintain minimum paid-up capital of fifteen billion Naira (N15,000,000,000), or such higher amount as the Bank may prescribe, on entry and at all times thereafter.”
Class 2 stablecoins are digital tokens designed to maintain a stable value against foreign currencies, including the US dollar.
For naira-backed stablecoins, classified as Class 1, the regulator prescribed a minimum paid-up capital of N10 billion.
The regulations state: “A Class 1 Licensed Issuer shall maintain paid-up capital of ten billion Naira (N10,000,000,000), or such higher amount as the Bank may prescribe, on entry and at all times thereafter.”
The CBN also set a minimum paid-up capital of N1 billion for providers of other non-security virtual asset services, including cryptocurrency custody, wallet, exchange, transfer and remittance services.
Under Section 16.1, the bank stated that the N1 billion requirement would apply “on entry and at all times thereafter”. It further clarified that where a provider holds a Securities and Exchange Commission (SEC) licence, the CBN capital requirement would be additional to the capital prescribed by the SEC for the relevant service.
The regulator also retained the authority to prescribe higher capital requirements for operators.
Local incorporation and licensing
The new framework requires foreign currency-backed stablecoins offered to Nigerian users to be issued through locally incorporated entities holding valid CBN licences.
Section 11.1 of the regulations states: “A Class 2 Stablecoin shall be issued only by a Nigerian-incorporated entity holding a valid Foreign Currency Issuer Licence (Class 2) granted by the Bank.”
The CBN further ruled that no foreign currency-referenced stablecoin can be offered, distributed, marketed, exchanged, held in custody or redeemed in Nigeria without its approval and issuance through a licensed Class 2 entity.
The apex bank also addressed the position of foreign issuers, stating in Section 15.3 that “There is no offshore issuer exemption from incorporation, licensing or capital.”
This means international stablecoin companies seeking to serve Nigerian customers must meet the country’s incorporation, licensing and capital requirements, even if they already operate under regulatory approvals in other jurisdictions.
Reserve backing and redemption requirements
Beyond the capital thresholds, the regulations introduce requirements for stablecoin reserves, liquidity and redemption.
Under Section 24.1, the CBN requires every licensed issuer to maintain reserve assets whose value equals or exceeds the par value of its outstanding stablecoin obligations.
The regulation states: “Every Licensed Issuer shall maintain at all times a Reserve Pool whose value in the reference currency equals or exceeds the par value of all its stablecoin obligations.”
Issuers must also maintain an additional reserve buffer of at least two per cent of the value of stablecoins in circulation to absorb potential valuation losses and operational liabilities.
Section 24.4 states: “A Licensed Issuer shall maintain overcollateralisation of not less than two per cent (2%) of the par value of stablecoins in circulation.”
The rules also require issuers to ensure that new tokens are created only after equivalent reserve assets have been received.
On redemption, Section 23.3 requires issuers to maintain systems and sufficient reserve liquidity to redeem stablecoins at their face value in the reference currency no later than the end of the business day following receipt of a valid redemption request.
Wider oversight of virtual asset operators
The framework extends beyond stablecoin issuers to cryptocurrency exchanges, digital wallet providers, payment gateways, remittance companies, custodians and platforms facilitating peer-to-peer transactions.
Operators are required to comply with regulatory provisions covering customer identification, anti-money laundering, counter-terrorism financing, transaction monitoring, cybersecurity, consumer protection and reporting obligations.
The CBN also retains powers to supervise operators, impose restrictions and suspend or revoke licences where necessary.
The regulations clarify that virtual assets classified as securities, investment contracts or other capital market products remain under the statutory jurisdiction of the SEC. Where an activity falls within the mandates of both regulators, operators are required to obtain the relevant approvals from each authority.
The CBN said the framework is intended to support responsible innovation while protecting the integrity and stability of Nigeria’s financial system.
In its circular, the apex bank said the regulations establish a framework for the “licensing, authorisation, regulation, supervision and oversight of Non-Security Virtual Assets and related activities in Nigeria.”
The new regulations took effect on November 5, 2026, establishing a licensing and supervisory framework for stablecoin issuers and other non-security virtual asset service providers operating in or targeting the Nigerian market.
