The Central Bank of Nigeria (CBN) introduced a regulatory framework for non-security virtual assets on November 5, 2026. The new rules mandate that stablecoin issuers obtain a license and maintain fully backed reserves. Algorithmic stablecoins and tokens backed primarily by other virtual assets are now prohibited.
The framework categorizes stablecoins into two classes. Class 1 tokens, pegged to the naira, require a minimum capital of NGN 10 billion. Class 2 tokens, referenced to foreign currencies, require NGN 15 billion. Other virtual asset service providers are subject to a lower threshold of NGN 1 billion.
Issuers must hold reserves equal to 100% of the token value plus a 2% buffer. Holders must be able to redeem tokens at par, typically by the next business day. Foreign-currency stablecoins can only be offered to Nigerian users through locally licensed entities or partners.
The regulations also require enhanced identity verification for peer-to-peer transactions. Existing operators are required to register with the CBN within 30 days and must apply for a license within 180 days of the effective date.
The CBN retains oversight of non-security virtual assets used for payments, while the Securities and Exchange Commission manages assets classified as securities. This framework follows the establishment of a Virtual Asset Council and a regulatory sandbox earlier in 2026.
