Nigeria's central bank imposes N15bn capital floor for foreign‑currency stablecoin issuers

According to the Central Bank of Nigeria, rules published on 5 November 2026 mandate that entities launching stablecoins supported by foreign currencies, such as the US dollar, must maintain a minimum paid-up capital of N15 billion. The rules also prescribe a lower capital floor of N10 billion for issuers of naira‑referenced stablecoins and a minimum of N1 billion for other non‑security virtual asset service providers. The capital thresholds apply from the point of entry into the market and must be maintained continuously, according to Section 15.The document is titled Regulations for the Operations of Non-Security Virtual Assets in Nigeria.

Musa Jimoh, Director of the Payments System Policy Department, signed the new framework, which designates foreign-currency stablecoins as Class 2 issuers and categorizes naira-backed tokens as Class 1. Companies that fall outside the stablecoin categories, such as payment, transfer, custody and wallet service providers, are required to hold at least N1 billion in paid‑up capital. All entities must obtain a CBN licence, comply with governance, operational and reporting standards, and are prohibited from offering services to Nigerian customers without authorisation.

Background

The CBN’s regulations form part of a broader effort to formalise the virtual‑asset sector in Nigeria, the continent’s largest cryptocurrency market. Earlier in the year, the bank opened a second cohort of its regulatory sandbox in August, providing a testing track for stablecoin issuers and other virtual‑asset firms. The current rules introduce a risk‑based licensing regime that covers stablecoins, Deposit Money Tokens and other digital tokens intended for payments, settlement and value transfer. The framework also bans unapproved tokens and restricts individuals or corporate bodies from issuing or facilitating regulated virtual‑asset services without a licence. The capital requirements echo similar thresholds set by the CBN for other financial institutions, aiming to ensure sufficient financial resilience.

Why it matters

The capital mandates directly affect major stablecoin providers operating in Nigeria, such as Tether (USDT) and Circle (USDC). Both companies have recently signalled intentions to expand their local presence, with Tether hiring an expansion manager and Circle appointing a former Yello executive to a senior role. By requiring a minimum of N15 billion (approximately $11.16 million) in paid‑up capital and the establishment of licensed local entities, the CBN seeks to protect consumers, preserve financial stability, and curb money‑laundering and terrorism‑financing risks. The rules also impact domestic fintech firms that offer peer‑to‑peer crypto services, as the CBN introduced tighter approval and identity‑verification procedures for such platforms.

What happens next

The regulations came into force immediately after publication, and issuers must demonstrate compliance on entry and maintain the required capital levels thereafter. Companies that fail to meet the thresholds risk losing market access in Nigeria. The CBN has indicated that it will continue supervising licensed entities, enforcing reporting obligations and monitoring compliance with the new capital and governance standards. No further dates for additional regulatory actions were disclosed in the sources.