just now
The Central Bank of Nigeria (CBN) has issued regulations for non-security virtual assets. They introduce licensing for stablecoin issuers and crypto service providers, ban algorithmic stablecoins, and require issuers of foreign currency stablecoins used by Nigerians to incorporate locally. The “Regulations for the Operations of Non-Security Virtual Assets in Nigeria” were released on 5 November 2026.
The rules create a Class 1 licence for naira-referenced stablecoin issuers, with minimum paid-up capital of ₦10 billion (around $7.4 million), and a Class 2 licence for foreign currency issuers, with ₦15 billion (around $11 million). Other service providers such as exchanges and wallets need ₦1 billion. Capital must be held in cash at the CBN or in Federal Government securities under lien. Each token also needs its own CBN approval.
Class 2 issuers must also hold operational liquidity equal to the highest of $10 million, 15% of Nigeria-linked liabilities, or 30 days of stressed outflows. Stablecoins must be fully backed and redeemable at par, and issuers may not pay interest or yield.
No Offshore Shortcut
Foreign currency stablecoins may be offered to Nigerian users only if issued by a Nigerian-incorporated Class 2 licensee; a foreign licence does not substitute. Class 2 tokens cannot be used to settle domestic naira obligations but are permitted for cross-border payments, remittances and trade settlement. Peer-to-peer services need specific CBN approval, and naira account names and bank verification numbers must match the verified customer.
The CBN covers payment, transfer and settlement uses of virtual assets, while Nigeria’s Securities and Exchange Commission keeps oversight of security tokens and trading. Existing operators must register within 30 days.
“They need to come and establish in Nigeria.” - Rume Ophi, Lead, Programmes and Communications, Virtual Asset Service Providers Association (VASPA)
A Large Stablecoin Market
The rules have implications for major issuers such as Tether and Circle, neither of which had commented. Nigeria is one of the largest stablecoin markets globally, with stablecoin P2P volume of $14.6 billion in 2026, according to Chainalysis data cited by Finance Magnates. Local players have been building in the space, including the cNGN naira stablecoin and Nigerian exchange Quidax, which recently expanded its stablecoin infrastructure to more than 21 countries. Stablecoin payments across the region have also drawn global players, with Mastercard partnering with Yellow Card.
The CNB's Regulations For The Operations of Non-Security Virtual Assets in Nigeria can be viewed here.
