The Central Bank of Nigeria (CBN) has introduced a ₦15bn minimum paid-up capital requirement for foreign-currency stablecoin issuers seeking to operate in Nigeria, tightening oversight of digital assets linked to currencies such as the US dollar.
The new rules mean companies behind popular stablecoins, including Tether’s USDT and Circle’s USDC, must meet the capital threshold and establish licensed Nigerian entities to access the country’s cryptocurrency market.
The regulations, which took effect on November 5, 2026, were contained in the CBN’s framework for non-security virtual assets, according to a review by Brandspur Banking News Desk.
See Also: JPMorgan Deposits ₦50 Billion With CBN As It Seeks Nigerian Merchant Banking Licence
The apex bank also set a ₦10bn minimum paid-up capital requirement for issuers of naira-backed stablecoins, creating separate entry thresholds based on the currencies to which the digital assets are pegged.
Under the framework, foreign-currency stablecoins can be used for cross-border payments, remittances, international commerce and trade settlements, subject to regulatory approval.
However, issuers must obtain a valid Class 2 licence and operate through a company incorporated in Nigeria. The rules also require foreign issuers to comply with local regulatory obligations, with no exemption for companies operating from outside the country.
The CBN further stipulated that paid-up capital must be maintained separately from customer funds, reserves, operational liquidity and deposits required by the regulator.
This means stablecoin issuers cannot count funds held to back their tokens or meet customer obligations towards satisfying the minimum capital requirement.
The regulator also reserved the right to demand capital above the stipulated minimum, depending on an issuer’s operational scale, transaction volumes, risk exposure, redemption obligations and technological risks.
Companies that fall below the required capital threshold must notify the CBN and submit a capital restoration plan within 10 business days.
The bank may restrict new token issuance, customer onboarding or other activities until the affected company restores its capital. Further regulatory action could follow if the shortfall is not addressed.
The framework also introduces requirements covering reserves, liquidity, redemption arrangements, governance, cybersecurity and anti-money laundering controls.
For foreign-currency stablecoins, the CBN may impose transaction limits, circulation thresholds and customer eligibility restrictions where necessary to address concerns about monetary policy, financial stability, payment systems, consumer protection or foreign exchange management.
The latest measures come nearly three months after the CBN opened the second cohort of its regulatory sandbox in August 2026, providing a dedicated testing track for stablecoin issuers and other virtual asset businesses.
The sandbox initiative allowed eligible companies to test products under regulatory supervision, marking a step towards integrating digital asset businesses into the country’s formal financial system.
The new framework also covers other virtual asset service providers, including cryptocurrency exchanges, wallet operators, custodians, transfer and remittance companies.
For these businesses, the CBN established a minimum paid-up capital requirement of ₦1bn, in addition to any capital obligations arising from an existing Securities and Exchange Commission licence.
Existing operators have 30 days from the commencement of the regulations to register with the CBN, 60 days to begin submitting supervisory reports and 180 days to complete their licence applications.
The rules permit businesses to continue operating during the transition period, but only at their existing scale and under conditions imposed by the regulator.
Operators that fail to submit their applications within the stipulated timeframe must cease operations until they obtain the necessary licence or authorisation.
