- Foreign-currency stablecoin issuers need ₦15 billion in capital and Nigerian licenses.
- Naira-backed stablecoin issuers need ₦10 billion; other virtual asset providers need ₦1 billion.
- Existing operators face 30-, 60-, and 180-day deadlines; larger stablecoins face added scrutiny.
Nigeria’s Central Bank (CBN) has introduced capital and licensing rules requiring issuers of foreign-currency stablecoins, including dollar-pegged tokens such as USDT and USDC, to hold at least ₦15 billion ($11.16 million) in paid-up capital.
The framework sets a ₦10 billion limit for naira-backed stablecoin issuers and requires foreign issuers to operate through locally incorporated, licensed entities.
Local Rules Set Capital and Licensing Floors
Foreign-currency stablecoin issuers must meet the $11.6M minimum, along with local reserve and operational requirements.
They must back tokens with reserves, arrange customer redemptions, and submit regular reports. The CBN will require monthly reserve attestations and may set additional capital or liquidity requirements for issuers it considers a financial-system risk.
Naira-backed stablecoin issuers face a ₦10 billion minimum. Other virtual asset service providers must hold at least ₦1 billion, separate from capital committed to licenses from the Securities and Exchange Commission or other regulators.
The rules also restrict which tokens can be offered. Algorithmic stablecoins that rely mainly on supply changes instead of sufficient reserve assets are prohibited.
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Operators Face Staged Compliance Deadlines
Existing operators must register with the CBN within 30 days and start submitting supervisory reports within 60 days. They have 180 days from the regulations’ effective date to apply for a license, although the CBN has not specified when that period begins.
The CBN said operators that fail to submit within the required period must cease operations until they obtain the necessary license or authorization. Companies seeking to continue while their applications are under review require explicit regulatory permission.
Larger Tokens May Face Additional Scrutiny
A stablecoin with circulating value above ₦500 billion for 30 consecutive days, or used by more than five million people in Nigeria, may receive enhanced scrutiny as a systemically important product.
The framework follows the CBN’s August launch of a regulatory sandbox cohort with a dedicated track for stablecoin and virtual asset companies.
Nigeria’s new framework places stablecoin issuers under stricter capital, reserve, and licensing requirements, raising the compliance threshold for companies operating in the country. The rules could reshape how foreign stablecoin providers access the Nigerian market as the CBN increases oversight of digital asset activity.
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Related: IMF Warns Nigeria’s Rapid Stablecoin Adoption Poses Monetary Risks
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