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The Central Bank of Nigeria (CBN) has introduced new regulatory guidelines for stablecoin issuers and other virtual asset service providers, setting minimum capital requirements of ₦10 billion and ₦15 billion for two categories of operators.
The new requirements are contained in a circular dated November 5, 2026, with reference number PSP/DIR/PUB/CIR/001/004, signed by the Director of Payments Systems Policy, Musa Jimoh.
Under the guidelines, issuers of naira-backed stablecoins, classified as Class 1 operators, are required to maintain a minimum paid-up capital of ₦10 billion. Meanwhile, Class 2 operators issuing stablecoins linked to foreign currencies, including the US dollar, must maintain at least ₦15 billion.
The apex bank stated that the capital requirements must be maintained upon entry and throughout the period of operation. It also reserved the right to prescribe higher capital thresholds where necessary.
The CBN further clarified that foreign-based issuers seeking to operate in Nigeria would not be exempted from local incorporation, licensing and capital requirements.
According to the bank, the framework establishes a risk-based regulatory structure for the licensing, supervision and oversight of non-security virtual assets, including stablecoins, Deposit Money Tokens and related Virtual Asset Service Providers.
The regulator acknowledged that the growing adoption of virtual assets and stablecoins presents opportunities for innovation in digital payments, international remittances, financial settlements and digital commerce.
However, it warned that their expansion also introduces risks to financial stability, monetary policy, consumer protection, foreign exchange management and efforts to combat illicit financial activities.
The new framework also introduces stricter compliance obligations for operators, particularly regarding customer identification, anti-money laundering measures, counter-terrorism financing and transaction monitoring.
On peer-to-peer (P2P) transactions, the CBN requires service providers to establish mechanisms for identifying customers engaged in frequent or high-volume trading activities. Such customers will be subjected to enhanced due diligence, transaction limits and regulatory reporting requirements.
The bank explained that the guidelines are intended to protect consumers against issuer insolvency, poor reserve management, fraud and the denial of redemption, while safeguarding the integrity and stability of Nigeria’s financial system.
The regulations cover naira-referenced stablecoins, foreign currency-referenced stablecoins, Deposit Money Tokens and other designated virtual assets falling within the CBN’s regulatory mandate.
