Since 5 November 2026, issuing a stablecoin to the Nigerian public requires a locally incorporated company, an office in the country and capital of 10 to 15 billion naira. The Central Bank of Nigeria (CBN) has published a regulation of more than 160 pages on virtual assets that are not securities. The country is thus moving from a logic of prohibition to a licensing regime, but at a level of requirements that few players will be able to meet.
From prohibition to licensing
The background sheds light on the scope of the text. According to Launch Base Africa, the 2021 ban on banks serving crypto-asset businesses did not make the activity disappear: it pushed it towards over-the-counter trading between individuals. The new framework covers stablecoins, tokens pegged to a currency, but also payment services, custody and peer-to-peer trading platforms. A 2026 presidential decree had already set up a virtual assets council tasked with coordinating regulators.
The division of roles is now clear, according to Finance Magnates: Nigeria’s SEC retains control over trading and investment, the CBN over payments, transfers and remittances. A platform authorised by the SEC can list a stablecoin, but will need separate authorisation from the CBN to use it for payments or transfers. The text also targets foreign companies that serve Nigerians without a physical presence in the country.
Requirements close to those of a bank
The amounts show how tight the filter is. An issuer of naira-backed tokens, known as Class 1, must raise 10 billion naira, around $7.4 million; an issuer of foreign-currency tokens, Class 2, 15 billion, or around $11.1 million. Service providers that do not issue tokens must add one billion naira in capital, which Finance Magnates puts at around $741,000. A platform regulated by the SEC cannot count the same funds for both regulators.
Reserves must cover at least 100% of tokens in circulation, plus a 2% buffer from own funds, be legally segregated and be independently attested every month, Launch Base Africa details. For Class 1, at least 20% of reserves are deposited in a dedicated account at the CBN. Holders must be able to redeem at par within one business day, without standard fees. Smart contracts must make it possible to freeze, burn or suspend tokens, and each use of these functions is reported to the CBN within 24 hours. The board of directors has at least five members, including two independents.
A tight timetable for existing players
Existing operators must register with the CBN within 30 days, start supervisory reporting within 60 days and file a complete licence application within 180 days. Until then, they may continue operating, but only at their current scale. Without an application, they will have to stop. Operating without authorisation carries a fine of 100 million naira, plus one million per day for as long as the breach continues; serious failings on reserves or misleading disclosures can cost up to 500 million.
For dollar tokens, the rule is blunt: a foreign licence or a local partnership is not enough. A foreign-currency stablecoin offered to Nigerian retail users must go through a Nigerian Class 2 entity. A narrow channel remains for wholesale cross-border settlement between licensed institutions, but it excludes the general public.
Who wins, and who risks disappearing
The stakes are considerable. According to Chainalysis figures cited by Finance Magnates, Nigeria recorded $38.1 billion in crypto activity between July 2025 and June 2026, and peer-to-peer stablecoin trading rose from $2.3 billion in 2022 to $14.6 billion in 2026.
Launch Base Africa sees banks, large well-capitalised fintechs and foreign issuers ready to set up a subsidiary as the likely winners. Small exchanges and wallets will have to consolidate, team up with a licensed player or leave. The outlet also points to weaknesses: incorrect internal cross-references, the absence of a lighter tier for small entrants, and bank-like obligations without deposit insurance or a lender of last resort. Finally, it notes that informal trading on WhatsApp or Telegram tends to move rather than disappear. The question remains open: will this framework stabilise the market or push it abroad?
Frequently asked questions
Can Nigerians still use USDT or USDC?
The regulation targets intermediaries: according to Launch Base Africa, its definition of peer-to-peer services excludes purely private transfers between two people, without an intermediary. However, a dollar stablecoin offered to retail users by a service provider will have to go through a licensed Nigerian Class 2 issuer.
How much capital is needed to issue a stablecoin in Nigeria?
10 billion naira for a naira-backed token and 15 billion for a foreign-currency token, or around $7.4 million and $11.1 million respectively, according to Launch Base Africa.
How long do existing platforms have to comply?
Thirty days to register, sixty to start reporting and one hundred and eighty to file a complete licence application, without being allowed to grow in the meantime.
Sources
- Nigeria's New Stablecoin Rules: $11M, a Local Office, and a Prayer for Startups Without Bank Balance Sheets — Launch Base Africa, 2026-11-06
- Nigeria Erects Strict Stablecoin Wall, Demanding $11M Local Subsidiaries for US Dollar Tokens — Finance Magnates, 2026-11-06