CBN Sets N15bn Capital Bar for Dollar Stablecoin Issuers in Nigeria

Nigeria’s central bank has set a N15 billion minimum paid-up capital requirement for locally licensed issuers of foreign-currency stablecoins, putting dollar-linked tokens under a detailed new framework for access to the Nigerian market. The Central Bank of Nigeria regulations were issued with a circular dated 5 November 2026 and cover stablecoin issuance, payments, custody, transfers and related virtual asset services.

For a dollar-pegged coin to be offered, distributed, exchanged, held in custody or redeemed for people in Nigeria, the rules generally require a Nigerian-incorporated entity with a Class 2 Foreign Currency Issuer Licence and approval for the token itself. A foreign parent or affiliate can be involved, but the local licensed issuer remains responsible for compliance. This is a market-access rule, not simply a fee imposed on a foreign company.

The N15 billion capital floor is separate from the assets backing coins already in circulation. Naira-referenced issuers, classified as Class 1, face a N10 billion minimum, while other non-security virtual asset service providers have a N1 billion floor. The CBN can require more capital where an operator’s risks warrant it.

The framework does not say every offshore-issued stablecoin automatically disappears from Nigerian users’ wallets. It does, however, make formal retail distribution and related regulated services conditional on CBN approval and a licensed local issuer. The document also creates a narrow exception under which the CBN may recognise a coin issued abroad for wholesale cross-border settlement by an authorised dealer or expressly approved licensee. That route is not an exemption for retail marketing in Nigeria.

Issuers must maintain reserves that fully back outstanding obligations, plus an additional 2 per cent buffer. They cannot mint tokens before eligible backing assets have been received. The rules also set redemption and safeguarding requirements, and prohibit stablecoin arrangements that rely mainly on algorithms rather than adequate reserves. These provisions are intended to reduce the risk that a token presented as a reliable digital dollar cannot be redeemed when holders need their money.

Existing operators have a transition route, not an open-ended waiver. They must register with the CBN within 30 days of commencement and submit the appropriate licence or authorisation application within 180 calendar days. During the transition they may continue only at their existing scale and subject to interim conditions. Existing Class 2 arrangements need express permission to retain access while they are assessed.

Dollar stablecoins are used in cross-border payments, remittances and treasury operations as well as trading. The CBN’s framework therefore reaches payment gateways, custodians and platforms that help Nigerians obtain or use these tokens. Cross-border transactions remain subject to foreign-exchange documentation and reporting rules. The aim is to bring digital-dollar activity into the same supervisory picture as other payment and currency flows.

The move builds on the CBN’s earlier work with virtual asset businesses. TechBooky reported on its virtual asset sandbox in August, when the regulator invited firms to test products under supervision. The new rules go further by spelling out who can issue a token, the capital they must hold and how customer funds should be protected.

For users, the immediate question is which stablecoins and platforms will seek approval, and what services will remain available during the transition. For issuers, the larger test is whether the cost of a local entity, capital and reserves is justified by access to Nigeria’s market. Neither the regulation nor today’s reports establish that any named foreign issuer has already received a Class 2 licence.