The Central Bank of Nigeria (CBN) has introduced a licensing and capital regime for stablecoin issuers and other virtual asset businesses. The new rules significantly raise the cost of operating in the country's digital asset market.
The requirements are set out in the Regulations for the Operations of Non-Security Virtual Assets in Nigeria, which the bank issued on November 5, 2026. According to a report by MSME Africa, the framework covers stablecoins, deposit money tokens and a range of related virtual asset services.
The rules create separate tiers for different types of operators. That structure means the financial burden will vary widely depending on what a business actually does.
Two Tiers of Stablecoin Issuers
Companies issuing stablecoins backed by the naira are classified as Class 1 operators. They must hold a minimum paid-up capital of ₦10 billion.
Issuers of stablecoins backed by foreign currencies, including tokens pegged to the US dollar, fall into Class 2. They face a higher floor of ₦15 billion.
Other non-security virtual asset service providers must hold at least ₦1 billion. This group includes cryptocurrency exchanges, digital wallet providers, custodians and transfer services. The CBN said capital must be held at entry and throughout an operator's life, and it may demand more from businesses with higher-risk activities.
Reserve Rules Designed to Back Every Token
Beyond capital, stablecoin issuers must hold reserve assets equal to the value of all tokens in circulation. They must also add a two per cent buffer to absorb potential losses and operational liabilities.
Naira-backed issuers face an extra condition. At least 20 per cent of their reserve pool must sit in a dedicated deposit account with the CBN.
The rules also make clear that regulatory capital must be kept separate from stablecoin reserves, customer assets and operating liquidity. Firms cannot count the same money toward more than one obligation, which raises the total funding they will need.
Broader Compliance Obligations
The framework extends well beyond capital. It sets requirements for corporate governance, liquidity management, customer protection, cybersecurity, anti-money laundering controls and regulatory reporting.
For many operators, meeting these standards will mean spending more on compliance systems, customer verification, transaction monitoring and reporting tools. That adds to the cost of doing business, even for firms well below the stablecoin capital thresholds.
The regulations also draw a line between regulators. Virtual assets that qualify as securities remain under the Securities and Exchange Commission, while the CBN oversees non-security assets.
Deadlines for Existing Operators
Businesses already active in the market have a phased timeline. They must register with the CBN within 30 days of the regulations taking effect and begin filing supervisory reports within 60 days.
Licence applications must be completed within 180 calendar days. During this transition, existing operators may keep serving customers, but they face regulatory conditions and limits on expanding their activities.
Firms that miss the application deadline must stop offering regulated services until they secure the required licence or authorisation.
Higher Barriers for Smaller Startups
The capital floors are likely to make stablecoin issuance difficult for early-stage fintechs. Companies without strong investor backing or institutional capital may struggle to reach ₦10 billion, let alone ₦15 billion.
However, not every fintech that touches stablecoins faces those figures. A business that uses stablecoins or offers digital payments without issuing tokens may instead fall under the ₦1 billion category, or outside the issuer tiers altogether. Operators will need to determine exactly which category their services fit into.
What the Framework Means for Nigeria's Fintech Sector
The CBN has described the regulations as a way to support responsible innovation while strengthening financial stability, consumer protection and oversight. In practice, the rules bring a previously loosely supervised segment into a formal, bank-style regime.
For founders, the immediate priority is to map their business model against the new categories and review their capital positions before the deadlines arrive. Stablecoin issuance in Nigeria now looks set to favour well-capitalised players, while smaller firms may find more room in exchange, wallet and payment services under the lower capital tier.
Source: MSME Africa
