*Says international issuers should set up Nigerian entities, safe native licences
*P2P naira-dollar conversions topic to FX approval
Nume Ekeghe
The Central Bank of Nigeria (CBN) has launched new rules requiring foreign-currency stablecoin issuers to acquire native licences and set up Nigerian-incorporated entities, because it strikes to tighten oversight of dollar-backed digital tokens and different digital asset actions.
The rules, which took impact on November 5, 2026, set up a proper framework for stablecoins, digital asset service suppliers and associated cost actions, together with peer-to-peer (P2P) transactions, custody, transfers and settlement.
In a round dated November 5, 2026, addressed to digital asset service suppliers and stakeholders within the monetary companies trade, the apex financial institution stated the framework was designed to advertise accountable innovation whereas defending the integrity of the monetary system.
Signed by the Director, Payments System Policy Department, Musa Jimoh, the rules set up a risk-based framework protecting licensing, authorisation, capital necessities, client safety, expertise dangers, cybersecurity, anti-money laundering controls and regulatory reporting.
The guidelines apply to individuals conducting regulated actions in or from Nigeria, concentrating on Nigerian customers or enterprise actions that would materially have an effect on the nation’s funds system, monetary system, international trade market or monetary stability. They might apply even the place an operator has no bodily presence in Nigeria.
A serious provision requires foreign-currency stablecoin issuers to function by way of Nigerian-incorporated entities and procure CBN approval earlier than making their tokens obtainable to Nigerians.
Under Section 11.1, international issuers can now not rely solely on licences or regulatory approvals obtained in different jurisdictions to entry the Nigerian market. They should get hold of a Class 2 Foreign Currency Issuer Licence and concern their tokens by way of a domestically integrated entity.
The rules additional require Nigerian entities to stay totally accountable for compliance, even the place they function by way of worldwide group preparations. The CBN may have unrestricted supervisory entry to their books, data, programs, reserve preparations and related group info.
The framework additionally introduces capital necessities primarily based on the forex to which a stablecoin is linked. Issuers of naira-referenced stablecoins, labeled as Class 1, should preserve minimal paid-up capital of N10 billion, whereas foreign-currency stablecoin issuers below Class 2 should preserve not less than N15 billion.
Other non-security digital asset service suppliers face a minimal capital requirement of ₦1 billion.
The CBN can also be introducing a systemic stablecoin class, enabling it to impose enhanced supervisory necessities on tokens whose scale or adoption might have wider implications for the Nigerian monetary system.
Under Section 3.6, a stablecoin might qualify for systemic designation if its naira-equivalent circulating provide exceeds N500 billion day-after-day for 30 consecutive days, or whether it is held or utilized by greater than 5 million individuals in Nigeria.
The apex financial institution may take into account transaction volumes and values, the quantity and focus of Nigerian customers or pockets addresses, and the proportion of a stablecoin’s exercise attributable to the Nigerian market.
The rules additionally convey P2P transactions involving dollar-backed stablecoins below the formal international trade framework, requiring suppliers to acquire categorical CBN approval earlier than facilitating conversions between the naira and foreign-currency worth.
The financial institution made clear that approval to supply P2P companies doesn’t confer permission to conduct international trade enterprise or create another international trade market.
Providers should safe separate approval earlier than facilitating P2P transactions involving conversions between the naira and a Class 2 stablecoin or different foreign-currency worth. Such approval would require the naira leg of the transaction to be settled by way of, or reported to, an authorised supplier designated by the CBN. Transactions should additionally adjust to prescribed international trade monitoring, limits and documentation necessities.
The guidelines additional prohibit operators from structuring, splitting or routing transactions by way of a number of channels to evade regulatory oversight, international trade or capital-flow necessities, transaction limits, anti-money laundering controls and reporting obligations.
On reserve necessities, Class 1 stablecoin issuers should preserve not less than 20 per cent of their complete reserve pool as a money deposit with the CBN in a devoted Reserve Deposit Account.
The funds can’t be withdrawn with out the financial institution’s prior written consent. The CBN may have real-time visibility over the account, which is not going to entice curiosity. The requirement doesn’t apply to Class 2 issuers, whose operational liquidity is ruled by separate provisions.
The rules additionally prohibit stablecoin issuers from paying curiosity, yields, dividends or different monetary advantages to holders merely for retaining their tokens. They make clear that stablecoins will not be financial institution deposits and will not be lined by deposit insurance coverage from the Nigeria Deposit Insurance Corporation.
The CBN has backed the framework with monetary penalties for non-compliance. Unlicensed digital asset actions entice a minimal high quality of N100 million, with an extra N1 million for day-after-day the violation continues.
Breaches involving capital, reserve and liquidity necessities might entice penalties starting from N50 million to N250 million, whereas violations relating to order leverage or encumbrance carry fines of between N250 million and N500 million.
Non-compliance with anti-money laundering, counter-terrorism financing and Travel Rule necessities attracts a minimal penalty of N50 million. Fraudulent conduct or deliberate misrepresentation carries a minimal high quality of N500 million, alongside doable referral for prison prosecution.
The CBN, nonetheless, clarified that the rules don’t displace the statutory mandate of the Securities and Exchange Commission. Activities involving safety digital belongings, securities, funding contracts and different capital-market merchandise will stay topic to the relevant capital-market regulatory framework.
