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NIGERIA

Nigeria sets ₦15bn capital and local-licence rule for foreign-currency stablecoins

Nigeria's central bank has issued rules requiring foreign-currency stablecoins offered to Nigerians to come through a locally licensed issuer with ₦15bn in capital, and P2P platforms to match BVNs. Corridor payment firms are exposed.

Citi Sighs5 MIN
Aerial view of colourful buildings and streets in Lagos, Nigeria

Lagos, Nigeria. Photo: Namnso Ukpanah / Unsplash

By the Citi Sighs Intelligence Desk — Toronto, November 6, 2026

TORONTO — Nigeria's central bank has issued rules under which foreign-currency stablecoins may be made available to Nigerians only if they are issued through a Nigerian-incorporated company holding a central bank licence. The Regulations for the Operations of Non-Security Virtual Assets in Nigeria, released on Nov. 5 according to Nairametrics, set minimum paid-up capital of ₦15 billion for those issuers, ₦10 billion for naira stablecoin issuers and ₦1 billion for other virtual-asset service providers.

For Canadian fintechs, remittance firms and software vendors that settle payments into Nigeria with dollar tokens, and for Nigerian startups building on them, the rules add a central bank licensing regime alongside the Securities and Exchange Commission's, with a local company, local accounts and naira rails. They land a day after Citi Sighs reported that Ghana is drafting its own stablecoin directive and Canada is consulting on draft rules.

What changed

The Central Bank of Nigeria (CBN) regulations set out the following:

  • Who regulates what: the CBN takes virtual assets that are not securities, and the payment and foreign-exchange services built on them; the SEC keeps securities-type tokens (s.4.1). An SEC licence does not by itself authorise the CBN-regulated services, and the same capital cannot count towards both regulators' requirements (ss.16.2, 17.3), a point BusinessDay also reports.
  • Foreign-currency tokens: a "Class 2" stablecoin must be issued by a Nigerian-incorporated entity with a Class 2 licence (s.11.1). A foreign licence does not substitute for it, and there is no offshore-issuer exemption (s.15.3).
  • Capital: ₦15 billion for Class 2 issuers, ₦10 billion for Class 1 (naira) issuers and ₦1 billion for other service providers (ss.15.1, 15.2, 16.1).
  • Liquidity for foreign-currency issuers: a separate buffer, which cannot count towards capital or reserves, set by reference to US$10 million, 15% of Nigeria-linked outstanding liabilities and 30 days of stressed Nigerian redemptions (ss.11.3.1, 11.3.10). It must be held with at least two approved institutions.
  • Naira tokens must be backed one-to-one by naira reserve assets (s.7.3). Algorithmic stablecoins, which rely on adjusting supply or demand rather than full reserve backing, are prohibited (s.2.2).
  • Peer-to-peer (P2P) trading: there is no separate P2P licence (s.10.2.1). A platform needs a CBN licence plus the bank's express approval for P2P (s.10.2.2), and must not release tokens until it has checked that the name and Bank Verification Number (BVN) on the naira account match the verified customer (s.10.3.3). The naira leg must run through a Nigerian channel the CBN permits (s.10.5.1).

Status: issued by the CBN. We could not confirm the commencement date or transition terms from the official text (see below).

The rules follow the Presidential Executive Order on Virtual Assets Coordination, 2026, announced in July, which created a CBN-chaired Virtual Asset Council and assigned non-security payment, settlement and custody services to the CBN.

What it means in practice

  • Retail: a foreign-currency token issued offshore cannot be offered to Nigerian customers unless it comes through a licensed Nigerian issuer.
  • Wholesale: the bank may recognise a foreign-currency stablecoin issued abroad for authorised dealers or approved licensees to settle wholesale cross-border transactions (s.11.10.16–17). Recognition depends on conditions including an equivalent home regime, cooperation arrangements and no retail offering in Nigeria, and the bank can vary or withdraw it.
  • Exchanges and wallets: platforms already licensed by the SEC need separate CBN authorisation and ₦1 billion of capital for payment-type services.
  • Individuals: freelancers and traders who buy or sell tokens for naira on P2P platforms will face BVN matching.

Context: the other two ends of the corridor

Canada's draft regulations under the Stablecoin Act, published Oct. 24, would require redemption within three business days, cap redemption fees at 1% and require reserve custodians incorporated in Canada. Foreign issuers would be covered, though one with substantially similar home rules could be exempted. Comments are open for 60 days.

In Ghana, Bank of Ghana Governor Johnson Pandit Asiama said on Nov. 2 that a stablecoin directive is being prepared, and named foreign-currency tokens as a risk to monetary control. No Ghanaian draft has been published.

What to watch next

  • The CBN's fee schedule, commencement date and any transition period for operators already active.
  • The harmonised implementation framework the executive order asked the Virtual Asset Council to produce.
  • SEC Nigeria's revised capital rules for digital-asset operators, due by June 30, 2027.
  • Canada's comment deadline, about Dec. 23, and Ghana's draft directive.

The case for and against

The case for: in our view, a written CBN rulebook gives Nigerian banks and fintechs the certainty to serve token businesses openly, and BVN matching ties P2P trades to verified bank accounts, which should make fraud and money laundering harder. Local capital and liquidity mean Nigerian holders deal with a Nigerian entity if an issuer fails, a principle Canada's draft also applies through local custody.

The case against: ₦15 billion of capital plus a separate dollar liquidity buffer is a high bar that favours banks and large global issuers over local startups, and could concentrate the market. Households, freelancers and traders who use offshore tokens to hold dollars or receive foreign payments may face fewer options or higher costs.

Citi Sighs analysis — In our view, Canadian firms that pay out to Nigeria in dollar tokens should map now which tokens and partners touch Nigerian users, and ask those partners in writing how they will comply. Routing settlement through licensed Nigerian dealers looks more defensible than direct retail distribution, though wholesale recognition is conditional and can be withdrawn. Nigerian founders weighing a licence should cost capital, liquidity and dual supervision before committing. Until the CBN confirms its commencement date and transition terms, treat any timeline as provisional.

What we could not verify

  • The commencement date and transition period. The Block reports that the rules took effect on Nov. 5 and that existing operators have 180 days to apply; we did not find either in the CBN text we could read.
  • How the three liquidity measures in s.11.3.1 combine; the lead-in sentence did not render legibly.
  • The application and licence fees in the regulations' schedule, and the redemption time limit.
  • A CBN statement explaining its rationale, and reaction from Nigerian industry groups; we found neither.
  • Dollar or Canadian-dollar equivalents: the CBN states capital in naira only.

Disclosure: Citi Sighs has no commercial relationship with any company or institution named in this article. This article is general information, not tax, legal or investment advice.

NigeriaCanadaGhanaRegulationCentral Banks