CBN sets ₦15bn capital rule for dollar stablecoin issuers

The Central Bank of Nigeria (CBN) has set a minimum paid-up capital of ₦15 billion for companies issuing foreign currency-backed stablecoins, including dollar-pegged tokens such as USDT and USDC. The requirement is contained in the CBN's Regulations for the Operations of Non-Security Virtual Assets in Nigeria, issued on November 5, 2026.

The rules matter to ordinary Nigerians because stablecoins are widely used to hold dollars, send money abroad and access the dollar, according to the reports. Tighter rules could affect which platforms people can use and how easily they move money across borders.

What the new rules say

Under Section 15.2, a foreign currency stablecoin issuer, classified as a Class 2 issuer, must hold at least ₦15 billion in paid-up capital on entry and at all times afterwards. Naira-referenced stablecoin issuers, or Class 1, face a ₦10 billion threshold, while other virtual asset service providers must hold at least ₦1 billion.

Foreign stablecoin issuers can only reach Nigerians through a Nigerian-incorporated company holding a valid CBN licence. They must also keep a staffed physical office in the country and effective local management. The CBN said foreign regulatory approvals will not exempt them from Nigerian requirements.

Issuers must back their tokens with reserves equal to at least 100 per cent of outstanding obligations, plus a 2 per cent buffer. Holders must be able to redeem tokens at face value, generally by the next business day, with no charge for standard redemptions. Monthly reserve attestations are required.

The CBN also banned algorithmic stablecoins, which rely on supply adjustments rather than solid reserves, and tokens backed mainly by other cryptocurrencies. Stablecoins with circulating value above ₦500 billion for 30 straight days, or used by more than five million people, will be treated as systemically important and face extra scrutiny.

The framework also covers virtual asset service providers including exchanges, with tighter approval and identity verification requirements for peer-to-peer (P2P) transactions. The CBN said virtual assets tied to securities remain under the Securities and Exchange Commission (SEC), with both regulators coordinating.

Operators have 180 days from the date the rules take effect to apply for a licence, though the CBN has not said when that period begins. Companies must register within 30 days and begin submitting supervisory reports within 60 days. The CBN warned that failure to submit in time "shall require cessation until the required licence or authorisation is obtained."

Why global issuers are watching

The rules come as major issuers push into Nigeria. In August, Tether, the El Salvador-based company behind USDT, sought to hire an expansion manager in Nigeria. This week, Circle, the US company that issues USDC, appointed Gillian Darko as its Vice President and Head of Africa.

In the accompanying circular, the CBN said the framework was designed to "promote responsible innovation, strengthen the integrity of the Nigerian financial system and provide an appropriate regulatory framework for emerging digital payment instruments."

What happens next: Watch for the CBN to announce when the 180-day licensing window begins. Until then, existing operators are expected to register and file reports, and those that miss the deadlines risk losing access to Nigerian users.