The Central Bank of Nigeria has introduced a minimum paid-up capital requirement of ₦15bn for companies issuing foreign currency-backed stablecoins, including digital tokens pegged to the United States dollar.
The new requirement is part of a regulatory framework governing virtual assets and digital payment services in Nigeria, with separate capital thresholds for naira-backed stablecoins and other virtual asset service providers.
The provision is contained in the CBN’s Regulations for the Operations of Non-Security Virtual Assets in Nigeria, released on Friday following a circular dated November 5, 2026, and signed by the Director of the Payments System Policy Department, Musa Jimoh.
Under Section 15.2 of the regulations, the apex bank stated, “A Class 2 Licensed Issuer shall maintain minimum paid-up capital of fifteen billion Naira (N15,000,000,000), or such higher amount as the Bank may prescribe, on entry and at all times thereafter.”
The requirement applies to Class 2 stablecoin issuers, which are companies issuing digital tokens designed to maintain a stable value against foreign currencies, including the US dollar.
The regulations prescribe a lower minimum capital requirement of ₦10bn for issuers of naira-referenced stablecoins, classified as Class 1, while companies providing other non-security virtual asset services are required to maintain at least ₦1bn in paid-up capital.
The CBN stated, “A Class 1 Licensed Issuer shall maintain paid-up capital of ten billion Naira (N10,000,000,000), or such higher amount as the Bank may prescribe, on entry and at all times thereafter.”
For other virtual asset service providers, the regulations stipulate that the ₦1bn capital requirement must be maintained separately from capital committed to licences issued by the Securities and Exchange Commission or other regulatory authorities.
The framework establishes different capital thresholds for stablecoin issuers and other virtual asset operators, reflecting the varying financial and operational risks associated with their activities.
It also empowers the CBN to require higher capital levels based on operators’ transaction volumes, market significance, redemption obligations, technology risks and exposure to the broader financial system.
The regulations further clarify that regulatory capital must be maintained separately from funds set aside to back stablecoins and meet other financial obligations.
The document stated, “Capital shall be separate from and additional to issuer reserves, the CBN reserve deposit, customer funds and assets and operational liquidity.”
This means operators cannot use the same funds to satisfy multiple regulatory requirements, including minimum capital obligations and reserves backing stablecoins already in circulation.
The CBN also requires eligible capital to be held as cash in designated accounts with the apex bank or in approved Federal Government securities under its control.
Operators whose capital falls below the prescribed minimum must immediately notify the CBN and submit a capital restoration plan within 10 business days. The regulator may restrict new token issuance or customer onboarding until the shortfall is addressed.
Beyond capital requirements, the new framework introduces strict rules for assets backing stablecoins, requiring issuers to maintain reserves equivalent to at least 100 per cent of their outstanding obligations, alongside an additional two per cent buffer against potential losses.
It stated, “No Licensed Issuer shall issue new stablecoin tokens (mint) unless, at the time of minting, equivalent Eligible Reserve Assets have been received and held in the Reserve Pool.”
Stablecoin holders must also be able to redeem their tokens at face value, generally no later than the next business day after submitting a valid request. Standard redemptions must be processed without charges.
The regulations prohibit algorithmic stablecoins that rely primarily on supply adjustments rather than adequate reserve assets, as well as tokens linked to fiat currencies but backed mainly by other cryptocurrencies.
The CBN has also introduced additional supervisory requirements for stablecoins whose circulating value exceeds ₦500bn for 30 consecutive days or which are used by more than five million people in Nigeria.
Such instruments will be classified as systemically important and subjected to enhanced regulatory scrutiny.
The framework also covers cryptocurrency exchanges, digital wallets, payment gateways, remittance services, custody providers and platform-facilitated peer-to-peer transactions.
It introduces compliance obligations covering anti-money laundering, counter-terrorism financing, customer identification, transaction monitoring, cybersecurity, consumer protection and regulatory reporting.
The rules apply to both domestic and foreign operators providing regulated services to Nigerians, regardless of whether they maintain physical offices in the country.
However, the CBN clarified that virtual assets classified as securities would remain under the jurisdiction of the SEC, with both regulators expected to coordinate where their responsibilities overlap.
In the accompanying circular, the apex bank said the framework was designed to “promote responsible innovation, strengthen the integrity of the Nigerian financial system and provide an appropriate regulatory framework for emerging digital payment instruments.”
The regulations took effect on November 5, 2026, establishing a new licensing and supervisory framework for Nigeria’s growing virtual asset and digital payment market.
