NIGERIA · MARKETS
Key Facts
- What happened Nigeria’s central bank released new rules for stablecoin issuers on Thursday 5 November 2026.
- The floor Issuers of dollar-linked stablecoins need 15 billion naira (about US$11.1 million) in shareholder capital.
- The catch Foreign issuers must set up a licensed Nigerian company to serve Nigerian users.
- The lower tier Issuers of naira-linked tokens must hold 10 billion naira (about US$7.4 million).
Nigeria’s central bank, the Central Bank of Nigeria (CBN), has told companies that issue digital dollars to hold 15 billion naira, Nigeria’s currency (about US$11.1 million) in shareholder capital, and to do it through a company based in Nigeria. A stablecoin is a crypto token built to stay worth one US dollar, and published summaries of the rules say foreign issuers such as Tether, which issues the USDT token, and Circle, the US company behind USDC, get no exemption.
The CBN, whose governor is Olayemi Cardoso, released the rules on Thursday 5 November 2026, according to published summaries, in a document titled Regulations for the Operations of Non-Security Virtual Assets in Nigeria. For US readers, it is an early test of how a large emerging market will treat the dollar tokens that US-linked fintech and crypto firms sell abroad.
What the Rule Says
The regulation sorts stablecoin issuers into two classes. Class 2 covers tokens tied to a foreign currency such as the US dollar, and its issuer must hold at least 15 billion naira in paid-up capital, meaning money that shareholders have actually put into the company.
The regulation says that capital must be in place on entry and at all times afterwards, or at any higher amount the CBN sets. At about 1,346 naira per US dollar (market rate, 6 November 2026), 15 billion naira is about US$11.1 million.
Class 1 covers tokens tied to the naira, and its issuers must hold 10 billion naira (about US$7.4 million). Other virtual asset service providers, such as wallets and exchanges, face a floor of 1 billion naira (about US$740,000), according to published summaries of the regulation.
Who Has to Comply
A Class 2 stablecoin can be issued only by a company incorporated in Nigeria that holds a Class 2 licence. The rules give no exemption to offshore issuers, so a foreign group must create a local entity that answers to the CBN.
Tokens may not be offered in Nigeria unless the CBN has approved them, according to a published summary. That keeps the approval decision with the central bank rather than with the issuer.
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How the Money Is Protected
The capital is not the same money as the reserves that back each token. The regulation says capital must be separate from, and additional to, issuer reserves, so one pot of money cannot satisfy two rules.
A published summary adds that the capital must also stay separate from customer funds and operating liquidity. An issuer that falls below its floor must tell the CBN immediately and file a plan to restore its capital within 10 business days.
Published summaries say existing operators have 30 days from the start date to register with the CBN and 180 days to complete licence applications. They add that operators who miss the deadline must stop work until they are licensed.
Why It Matters Beyond Nigeria
A published summary says the Class 2 licence is built for cross-border payments, remittances and trade settlement. Those are the uses where dollar tokens compete with banks and money-transfer firms.
US fintech companies that move money between the United States and Nigeria will now need to work out whether they count as issuers or only as service providers. A firm that wants to issue dollar tokens to Nigerians needs a Nigerian company, a licence and about US$11.1 million of locked capital before it starts.
What It Means for You
If you invest in US-listed crypto or payments companies, watch whether they announce Nigerian licence applications. The capital is a one-off lock-up, while the licence and the local office add running costs.
If you send money to family in Nigeria through a stablecoin app, the service may change as providers decide whether to apply. The naira trades near 1,346 per US dollar, so 100,000 naira is worth about US$74.
What Is Not Known
It is not known which foreign issuers will apply, and the published summaries do not say that Tether or Circle has responded. One summary also mentions a separate liquidity requirement for dollar issuers, and its size is unconfirmed.
It is also unclear how the CBN will treat tokens already circulating in Nigeria while licences are pending. The day counts for existing operators run from a start date that the summaries describe in different ways.
More: Nigeria news in English, every day from The Rio Times. See also how much Nigeria owes foreign lenders.
Frequently Asked Questions
What Is Nigeria’s New Stablecoin Capital Rule?
Issuers of stablecoins tied to a foreign currency must hold 15 billion naira (about US$11.1 million) in paid-up capital. The Central Bank of Nigeria released the rule, reports say, on Thursday 5 November 2026.
Does the Rule Cover Tether and Circle?
The rules give offshore issuers no exemption and require a licensed Nigerian company. Neither company’s plans for Nigeria are known.
How Does the Naira Stablecoin Floor Compare?
Issuers of naira-linked tokens must hold 10 billion naira (about US$7.4 million). Foreign-currency issuers face the higher floor of 15 billion naira.
What Happens if an Issuer Falls Short?
It must tell the central bank at once and file a plan to restore its capital within 10 business days. The capital cannot also be counted as reserves or operating funds.
Sources: Central Bank of Nigeria (central bank), Regulations for the Operations of Non-Security Virtual Assets in Nigeria, 5 November 2026; Central Bank of Nigeria; USD/NGN market data (RT), 6 November 2026.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief