Nigeria’s central bank mandates licenses for stablecoin issuers

Nigeria’s central bank wants to know exactly who is minting digital dollars and digital naira in its backyard. On November 5, 2026, the Central Bank of Nigeria (CBN) rolled out a regulatory framework for non-security virtual assets, and stablecoin issuers are near the top of the list.

The short version: issuers now need a license, a large pile of capital, and fully backed reserves. Algorithmic stablecoins, the kind that hold their peg through code and market incentives instead of cash in a vault, are banned outright.

What the CBN is actually requiring

The framework splits stablecoins into two buckets. Class 1 covers tokens pegged to the naira. Class 2 covers tokens referenced to foreign currencies such as the US dollar.

Each class comes with its own price of admission. Class 1 issuers need minimum capital of N10 billion. Class 2 issuers face a steeper bar of N15 billion.

Other virtual asset service providers (VASPs) that fall under the framework get a lighter requirement. Their minimum capital threshold is N1 billion.

Then come the reserve rules. Stablecoins must hold at least 100% reserves in eligible assets, plus a 2% buffer on top.

That ties directly to redemption. Holders must be able to redeem their tokens at par, generally by the next business day.

The bans and the gatekeeping

The CBN didn’t stop at algorithmic stablecoins. It also prohibited fiat-referenced tokens that are backed primarily by other virtual assets.

The more consequential rule may be about access. Under the framework, foreign-currency stablecoins can reach Nigerian users only through locally licensed entities.

Arrangements with foreign intermediaries won’t satisfy the requirement. If a global issuer wants Nigerian customers, it needs a licensed local partner or its own local footprint.

Peer-to-peer trading gets attention too. The rules call for enhanced identity verification on P2P transactions facilitated by platforms.

The clock is already running for anyone operating today. Existing operators must register with the CBN within 30 days of the regulations taking effect.

They then have 180 days from that effective date to apply for the relevant license.

Who regulates what

The framework also draws a line between two regulators. The CBN oversees non-security virtual assets used for payments and settlements.

Nigeria’s Securities and Exchange Commission keeps oversight of digital assets classified as securities.

How Nigeria got here

This isn’t the first regulatory move of the year. In mid-2026, an executive order set up a Virtual Asset Council, and an expansive regulatory sandbox was launched.

The sandbox was pitched as a way to encourage innovation while keeping activity in line with monetary and financial stability goals. The new licensing regime reads like the next chapter: experiment first, then formalize.

It also marks a change in posture. Nigeria’s earlier approach to digital assets was more restrictive, and this framework swaps that stance for a structured licensing system meant to balance innovation against consumer protection.