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FIGR_HELOC $1.03 Regulation · News brief
Nigeria's central bank sets ₦15B capital rule for stablecoins, bans algorithmic tokens
Foreign-currency stablecoin issuers must incorporate in Nigeria and hold at least ₦15 billion in capital under rules effective Nov. 5.
Key takeaways
- Capital floors. Foreign-currency (Class 2) issuers need at least ₦15 billion in paid-up capital; naira-referenced (Class 1) issuers need ₦10 billion; other virtual asset service providers need ₦1 billion.
- No offshore shortcut. A license from another jurisdiction does not substitute for a CBN license, and there is no offshore issuer exemption from incorporation, licensing or capital.
- Token-by-token approval. Each stablecoin needs separate written approval, and licensed platforms may not offer a token the central bank has not approved.
What happened
The Central Bank of Nigeria has issued a rulebook for virtual assets that do not qualify as securities, with a circular stating that the rules took effect on Thursday, Nov. 5, 2026. The framework creates licensing categories for stablecoin issuers as well as for the payment, custody, wallet and exchange firms that handle their tokens, according to Unchained and Crypto.news.
Stablecoins pegged to the dollar or another foreign currency fall into Class 2. Only a company incorporated in Nigeria and licensed by the CBN for that class may issue such tokens to the Nigerian market. The document states that a foreign license does not substitute for the local one or for the central bank's approval of the token, and that there is no offshore issuer exemption from incorporation, licensing or capital.
Capital requirements differ by category. Naira-referenced, or Class 1, issuers must hold at least ₦10 billion in paid-up capital, while Class 2 issuers need at least ₦15 billion. Other service providers face a minimum of ₦1 billion, separate from any capital the Securities and Exchange Commission requires of them.
The rules also prohibit algorithmic stablecoins, fiat-referenced tokens backed mainly by other crypto assets, and tokens that give holders no enforceable right to redeem at par. Tokens issued by sanctioned entities or from sanctioned jurisdictions are barred as well. Approved issuers must fully back their tokens with eligible reserves plus a 2% overcollateralization buffer, and Class 1 issuers must keep at least 20% of their reserve pool as a cash deposit at the CBN. Issuers may not pay interest or yield to holders.
Sources · 4 publishers
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Nigeria’s central bank introduces stablecoin licensing rules, bans algorithmic versions -
Nigeria’s central bank sets ₦15B capital rule for stablecoins, bans algorithmic tokens -
Nigeria’s Central Bank Now Requires Offshore Stablecoin Issuers to License Locally -
Nigeria sets new crypto licensing rules, bans algorithmic stablecoins
