The Central Bank of Nigeria (CBN) has introduced capital thresholds of ₦10 billion and ₦15 billion for stablecoin issuers, raising the financial requirements for companies seeking to operate in Nigeria’s growing digital payments market while tightening oversight of transactions involving naira and foreign currency-backed tokens.
Under the new framework, issuers of naira-referenced stablecoins must maintain a minimum paid-up capital of ₦10 billion, while operators offering tokens pegged to foreign currencies, including the US dollar, face a ₦15 billion requirement.
The provisions are contained in a circular dated November 5, 2026, with reference number PSP/DIR/PUB/CIR/001/004, signed by Musa Jimoh, Director of Payments Systems Policy at the CBN.
The regulator requires operators to maintain the stipulated capital both when entering the market and throughout their operations. It also reserves the right to demand higher amounts. Offshore companies will not enjoy exemptions, as every issuer must satisfy Nigeria’s incorporation, licensing and capital requirements.
The distinction between the two categories is significant. A naira-referenced stablecoin is designed to maintain a fixed value against the Nigerian currency, while a foreign currency-referenced token is linked to another currency, such as the US dollar. Both are digital assets, but their reference currencies expose Nigeria’s financial system to different risks.
The new capital thresholds could make entry into the market more demanding, particularly for smaller fintech companies and prospective issuers without substantial financial backing.
However, the requirements are also intended to strengthen the capacity of operators to withstand financial shocks and protect customers against losses arising from insolvency, poor management of reserve assets or refusal to honour redemption requests.
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The CBN’s intervention extends beyond capital requirements. Its risk-based framework covers stablecoins, Deposit Money Tokens and other designated non-security virtual assets under its regulatory authority over payments, banking, settlements and foreign exchange.
The guidelines prescribe standards for corporate governance, consumer protection, operational resilience, anti-money laundering, counter-terrorism financing and regulatory reporting.
Peer-to-peer transactions have also come under closer scrutiny. Virtual asset service providers must establish board-approved criteria for identifying customers who regularly buy, sell or exchange regulated tokens as a business.
Transaction volumes, frequency, number of counterparties and public advertisement of exchange rates will help determine whether an individual is operating commercially.
Such customers will face enhanced due diligence and transaction limits, while providers must report them to the regulator. The CBN clarified that identifying someone as a business operator does not automatically grant permission to conduct regulated activities. Those involved must obtain the appropriate licence, stop the activity or operate as agents of authorised providers.
The policy reflects the growing importance of stablecoins in digital commerce, payments, remittances and settlements. Their ability to facilitate transactions across borders can improve financial efficiency, but extensive use of foreign currency-backed tokens could also complicate exchange-rate management and weaken the CBN’s visibility over capital movements.
The regulator therefore faces the task of accommodating financial innovation without allowing digital tokens to become channels for illicit transactions or undermine monetary policy.
For Nigerians and businesses using stablecoins, the rules signal a more closely supervised market. Their practical impact will depend on how the CBN implements the licensing requirements, monitors operators and enforces compliance.
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