*Says overseas 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 providers business, the apex financial institution mentioned 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, shopper safety, know-how dangers, cybersecurity, anti-money laundering controls and regulatory reporting.
The guidelines apply to individuals conducting regulated actions in or from Nigeria, focusing on Nigerian customers or endeavor actions that might materially have an effect on the nation’s funds system, monetary system, overseas alternate market or monetary stability. They could apply even the place an operator has no bodily presence in Nigeria.
A significant provision requires foreign-currency stablecoin issuers to function by way of Nigerian-incorporated entities and acquire CBN approval earlier than making their tokens out there to Nigerians.
Under Section 11.1, overseas issuers can now not rely solely on licences or regulatory approvals obtained in different jurisdictions to entry the Nigerian market. They should acquire a Class 2 Foreign Currency Issuer Licence and situation their tokens by way of a regionally included 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, methods, 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, categorised as Class 1, should preserve minimal paid-up capital of N10 billion, whereas foreign-currency stablecoin issuers below Class 2 should preserve at the least N15 billion.
Other non-security digital asset service suppliers face a minimal capital requirement of ₦1 billion.
The CBN can be introducing a systemic stablecoin class, enabling it to impose enhanced supervisory necessities on tokens whose scale or adoption may have wider implications for the Nigerian monetary system.
Under Section 3.6, a stablecoin could 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 additionally 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 deliver P2P transactions involving dollar-backed stablecoins below the formal overseas alternate 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 providers doesn’t confer permission to conduct overseas alternate enterprise or create another overseas alternate 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 vendor designated by the CBN. Transactions should additionally adjust to prescribed overseas alternate 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, overseas alternate or capital-flow necessities, transaction limits, anti-money laundering controls and reporting obligations.
On reserve necessities, Class 1 stablecoin issuers should preserve at the least 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 won’t 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 usually are not financial institution deposits and usually are not coated 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 wonderful of N100 million, with an extra N1 million for day-after-day the violation continues.
Breaches involving capital, reserve and liquidity necessities could 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 wonderful of N500 million, alongside potential referral for prison prosecution.
The CBN, nevertheless, clarified that the rules don’t displace the statutory mandate of the Securities and Exchange Commission. Activities involving safety digital property, securities, funding contracts and different capital-market merchandise will stay topic to the relevant capital-market regulatory framework.
