Nigeria tells stablecoin issuers: get licensed or leave

The Central Bank of Nigeria ordered stablecoin issuers serving the country to hold a licence, on 5 November, in a rulebook that sets minimum capital of 10 billion naira (about $7.4 million) for naira-linked tokens and 15 billion naira (about $11.1 million) for foreign-currency-backed ones.

The requirements sit in the central bank’s Regulations for the Operations of Non-Security Virtual Assets, issued alongside a circular and effective immediately. Existing operators have 180 days to apply for licences or authorisations. The framework covers stablecoin issuers, crypto payment providers, exchanges and custodians, and it reaches beyond Nigeria’s borders: the central bank’s circular applies it to activities conducted in or from Nigeria, directed at Nigerian residents, or materially affecting Nigerian payment and financial systems.

Two licence classes, per-token approval

The rules split stablecoin issuers into two classes. Class 1 covers naira-linked issuers, Class 2 foreign-currency-backed tokens, and the central bank retains the power to prescribe higher capital minimums than the headline figures. Every token needs individual regulatory approval, with disclosures on reserves, redemption processes, supported networks, governance and risks.

Companies offering payment-related crypto services, including exchange and custody, face a lower floor of 1 billion naira (about $742,000) in paid-up capital. The framework also carries anti-money-laundering checks, sanctions screening, transaction monitoring and customer disclosure duties.

Reserves and the algorithmic line

Issuers must fully back their tokens with reserve assets and hold an additional buffer of at least 2% of token value, with at least 40% of reserves in cash or qualifying highly liquid assets. Designs that rely primarily on algorithms rather than eligible reserves to hold their peg are not permitted, and tokens without enforceable redemption rights are barred outright.

For FX-focused readers the reserve floors are the point of comparison. The EU’s MiCA regime requires e-money token issuers to hold backing that is protected and segregated, and the ECB has been pushing to scrap MiCA’s bank-deposit carve-out from reserve requirements, a debate our MiCA stablecoin reserve rule coverage followed in September. Nigeria’s rulebook lands on the stricter side of that global convergence: full backing plus a buffer, a hard liquidity floor, and no algorithmic category at all.

The central bank said the framework aims to support responsible innovation while protecting consumers and financial stability.

The rules follow a change of course for the authorities. President Bola Tinubu issued an executive order in July coordinating crypto oversight, and the revenue agency introduced tax collection rules for digital asset platforms in August. That came after the 2024 dispute with Binance, which dropped its naira services in March 2024 before money laundering charges against executive Tigran Gambaryan were dropped in October 2024.

Existing operators have until early May 2027 to lodge their applications under the 180-day window.