Nigeria Sets N15B Capital Requirement For Foreign Stablecoin Issuers

The Central Bank of Nigeria has introduced new regulations, setting a minimum paid-up capital of 15 billion naira for foreign currency-backed stablecoin issuers. The apex bank also implemented stricter approval and identity verification requirements for platform-facilitated peer-to-peer cryptocurrency transactions. These rules are detailed in the "Regulations for the Operations of Non-Security Virtual Assets in Nigeria," issued on November 5, 2026.

Under the framework, foreign currency-referenced stablecoins, classified as Class 2, must be issued by a Nigerian-incorporated entity holding a valid CBN license. This entity requires a staffed physical office, effective local management, and capacity to meet supervisory requirements. Eligible capital must be held in cash in a designated CBN account or in Federal Government securities. P2P service providers also need specific CBN approval and must link crypto traders' identities to bank accounts.

The regulations mandate a minimum paid-up capital of 15 billion naira for Class 2 stablecoin issuers, higher than the 10 billion naira for Class 1 naira-referenced stablecoins and 1 billion naira for other non-security virtual asset service providers. Issuers must maintain reserves equivalent to at least 100% of outstanding obligations, plus a 2% buffer. Stablecoins exceeding 500 billion naira in circulating value for 30 days or used by over 5 million people will be classified as systemically important.

These requirements impose significant regulatory and financial obligations on foreign stablecoin businesses seeking access to the Nigerian market. Companies, including those affiliated with international groups, must ensure their Nigerian entities are fully compliant and maintain separate funds for capital adequacy and reserves. The rules apply to all operators, domestic and foreign, serving Nigerian customers, aiming to strengthen identity verification and combat financial crimes.

The CBN's new regulations build on a series of recent policy moves aimed at regulating Nigeria's crypto market. Earlier this year, President Bola Tinubu signed the Presidential Executive Order on Virtual Assets Coordination, 2026, followed by the Nigeria Revenue Service's guidelines on virtual asset taxation. The Securities and Exchange Commission has also admitted 14 crypto firms into its Accelerated Regulatory Incubation Programme. This comprehensive framework aims to provide a clear regulatory environment for digital payment instruments.