The Central Bank of Nigeria (CBN) has introduced a minimum capital requirement of ₦15 billion for companies seeking to issue dollar-backed stablecoins in Nigeria, as the apex bank strengthens its oversight of the country’s cryptocurrency and digital asset industry.
The requirement is part of a new regulatory framework titled Regulations for the Operations of Non-Security Virtual Assets in Nigeria, issued on November 5, 2026. The rules establish new licensing, capital, reserve and operational requirements for businesses involved in stablecoin issuance and other virtual asset services.
Under Section 15.2 of the regulations, companies issuing foreign currency-referenced stablecoins, including those pegged to the US dollar, must maintain a minimum paid-up capital of ₦15 billion throughout their operations.
The requirement also applies to foreign operators targeting Nigerian customers. Such companies must establish a Nigerian-incorporated entity and obtain the appropriate authorisation from the CBN. Existing licences from foreign regulators will not replace the requirement for local approval.
CBN Sets Different Capital Requirements for Stablecoin Issuers
The new regulations establish different financial requirements depending on the type of digital asset or service a company provides.
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Companies issuing naira-backed stablecoins must maintain a minimum paid-up capital of ₦10 billion, while those issuing foreign currency-backed stablecoins face the higher ₦15 billion requirement.
Other non-security virtual asset service providers, including cryptocurrency exchanges, wallet operators, custodians and related service providers, must maintain at least ₦1 billion in paid-up capital.
The CBN can also demand higher capital from individual operators depending on their transaction volumes, market significance, redemption obligations, technology risks and exposure to the wider financial system.
These requirements must be maintained throughout a company’s operations. They are also separate from customer funds, stablecoin reserves and operational liquidity.
Stablecoin Issuers Must Maintain Fully Backed Reserves
Beyond the new capital requirements, the CBN has introduced stricter rules on how stablecoins are backed and managed.
Under the regulations, issuers must maintain eligible reserve assets equivalent to the full value of their stablecoins in circulation. They must also maintain an additional 2% overcollateralisation buffer to absorb potential losses and operational liabilities.
Companies cannot create new stablecoin tokens without first receiving the corresponding reserve assets. The rules also require daily reconciliation of outstanding tokens against the value of their reserves.
The regulations further establish redemption requirements, allowing holders to exchange their stablecoins at face value. Valid redemption requests must generally be completed no later than the end of the next business day.
The CBN has also prohibited algorithmic stablecoins that rely primarily on supply adjustments rather than adequate reserve backing. Fiat-linked tokens backed mainly by other cryptocurrencies are also prohibited.
What the New CBN Rules Mean for Nigeria’s Crypto Industry
The new requirements could significantly change the cost of operating a stablecoin business in Nigeria.
Companies hoping to issue dollar-backed tokens will now need substantial financial resources, local incorporation and regulatory approval before commencing operations. Smaller fintech startups may find it more difficult to enter the stablecoin issuance market, potentially creating an advantage for better-funded financial institutions and established digital asset companies.
The regulations also extend beyond stablecoin issuers to cover virtual asset exchanges, digital wallets, payment gateways, remittance providers, custodians and peer-to-peer platforms.
Existing operators have 180 days from the commencement of the regulations to apply for the relevant licences. The framework also introduces additional requirements covering customer identification, anti-money laundering measures, cybersecurity and transaction monitoring.
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However, the new ₦15 billion capital requirement does not mean Nigerians must have ₦15 billion to own or transact with dollar-backed stablecoins such as USDT and USDC. It is a financial requirement imposed on companies seeking to issue these digital tokens.
The CBN says the broader regulatory framework is intended to support responsible innovation, protect consumers and strengthen the integrity of Nigeria’s financial system.
With the new rules taking effect from November 5, 2026, stablecoin issuers and other affected virtual asset businesses will now have to meet the regulator’s requirements to continue operating within the Nigerian market.
