Nigeria's central bank has set a 15 billion naira minimum capital requirement for licensed issuers of foreign-currency stablecoins, alongside rules governing local incorporation, reserves and customer redemptions. The framework took effect on November 5 under a circular issued that day.
The Central Bank of Nigeria's Regulations for the Operations of Non-Security Virtual Assets in Nigeria cover stablecoins, bank deposit tokens and related services. They apply to regulated activities conducted in or from Nigeria, as well as activities directed at people in the country, even where the provider has no physical presence there.
The circular preserves the Securities and Exchange Commission's authority over securities, investment contracts and other capital-market products. A business carrying out activities covered by both regulators must obtain the relevant approvals from each. The new framework therefore does not replace every existing Nigerian crypto rule with a central-bank licence.
Different capital floors, with a narrow offshore exception
Issuers of naira-referenced stablecoins fall into Class 1 and must maintain at least 10 billion naira in paid-up capital. Class 2 covers foreign-currency-referenced stablecoins and carries the 15 billion naira floor. Both requirements apply when entering the market and throughout operations, and the bank can prescribe higher amounts.
Providers of other non-security virtual-asset services face a minimum of 1 billion naira. Where a provider also holds an SEC licence, this capital is additional to the amount required by the securities regulator. The same money cannot be counted against both requirements. Regulatory capital must also remain separate from reserves, customer assets and operational liquidity.
The ordinary Class 2 route requires a Nigerian-incorporated issuer licensed by the central bank. A foreign group can own or work with that issuer, but the Nigerian entity remains responsible for compliance. The bank must have access to its records, systems, reserve arrangements and relevant group information.
There is a limited exception for foreign-issued stablecoins used in wholesale cross-border settlement. The bank may recognise such a coin for use by expressly approved authorised dealers or licensees where supervision is substantially equivalent, regulatory cooperation exists and holders have enforceable redemption rights. The issuer must also be able to freeze and block transactions on lawful orders.
That exception does not allow the recognised foreign stablecoin to be offered to Nigerian retail customers. Recognition can be changed or withdrawn. It should not be confused with the normal local issuer licence.
Redemption rights and a reserve buffer
Holders of stablecoins issued under the regulations have a legally enforceable right to redeem at par value. An issuer must normally complete a valid request by the end of the following business day, in the currency the stablecoin references.
During a stress event, the central bank may approve a longer period, but it cannot exceed five business days or a shorter maximum required by law. Standard redemption is free. A charge for non-standard settlement needs approval, cannot exceed the actual cost and must be disclosed in the whitepaper and customer agreement.
Issuers must continuously maintain reserves covering their stablecoin obligations and an additional buffer of at least 2% of the par value of coins in circulation. They cannot mint tokens against reserve money they merely expect to receive later. The rules require reconciliation of circulating coins against the reserve pool at the end of each business day.
Reserve assets must be legally and operationally separated from the issuer's own funds, identified for the benefit of holders and structured to give holders first priority over the reserve pool if the issuer becomes insolvent. For foreign-currency stablecoins, the regulations do not require a fixed share of the entire reserve pool to be held in Nigeria. Separate operational-liquidity safeguards still apply.
Issuers cannot pay or arrange interest, yield, dividends or other benefits merely for holding or depositing their stablecoins. Required disclosures must also explain that a stablecoin is not a bank deposit and is not covered by Nigeria's deposit guarantee scheme.
Existing operators face a conditional transition
Existing operators have 180 calendar days from commencement to apply for the appropriate licence or authorisation. Continuing during that period is conditional on registration within 30 days, anti-money-laundering compliance from commencement and supervisory reporting within 60 days, unless the bank sets an earlier reporting date.
They may continue only at their existing scale under the bank's interim conditions. Operators that fail to submit a complete application within the transition must stop until they obtain the required permission. Existing Class 2 arrangements need express interim permission and receive no permanent exemption.
Dalimss News has separately reported on Canada's proposed bank-subsidiary route for stablecoins and Singapore's proposed dispute-resolution access for stablecoin holders. Nigeria's package is already in effect, with its transition conditions determining how existing operators can continue while seeking approval.
