Nigeria’s Central Bank has introduced new rules for stablecoins and related payment services, setting a ₦15 billion minimum paid-up capital requirement for foreign-currency stablecoin issuers.
The regulations took effect on November 5, 2026. They cover licensing, reserves, redemption and customer protection, with implications for businesses using digital assets for payments and remittances.
Key Takeaways
- Foreign-currency stablecoin issuers face a ₦15 billion capital minimum; naira stablecoin issuers require ₦10 billion.
- Holders gain enforceable redemption rights, subject to the framework’s requirements.
- Approval of a foreign-currency stablecoin does not automatically permit its use for domestic naira obligations.
Separate Capital and Reserve Requirements
According to Punch’s reporting on the regulations, providers of other non-security virtual asset services must maintain at least ₦1 billion in paid-up capital.
Capital must remain separate from customer funds and reserves backing issued tokens. Issuers cannot count the same money toward these different obligations.
The framework also requires reserve backing and provides for standard redemption at face value by the next business day after a valid request. These protections address a practical concern for users: how reliably a token can be converted into the money it references.
Foreign-Currency Tokens Face Payment Restrictions
The CBN’s published rulebook distinguishes naira-referenced stablecoins from those referencing foreign currencies.
A Class 2 token’s approval does not authorise its use to price or discharge a domestic naira obligation unless applicable law expressly permits it. Foreign-exchange requirements still apply.
For businesses arranging cross-border remittances, this means checking the authorised payment route as well as the token. International transfers and domestic settlement can raise different regulatory questions.
Payment Providers Need the Right Permissions
The rules cover activities including wallets, custody, transfers, payment gateways and settlement. Securities-related assets remain within the SEC’s mandate, and overlapping activities may require approvals from both authorities.
Businesses integrating cryptocurrency payments should check their provider’s permissions for the actual service being offered.
The same review applies to custodial and non-custodial wallet arrangements: the product label alone does not establish its regulatory status.
Conclusion
Nigeria’s new framework ties stablecoin payment services to specific licensing and customer-protection obligations. For users and businesses, the immediate task is to check the issuer, redemption terms and permitted payment route before relying on a token for settlement.
