Nigeria is introducing a comprehensive regulatory framework for digital assets, covering licensing, reserve oversight, consumer protection, and cryptocurrency transfer monitoring.
The Central Bank of Nigeria (CBN) approved new regulations for digital assets, introducing mandatory licensing for crypto companies, stricter capital and reserve requirements for stablecoin issuers, and restrictions on certain types of transactions. The regulations took effect on November 5, 2026.
The new rules cover the issuance, distribution, exchange, custody, and transfer of digital assets that aren’t classified as securities, including stablecoins and tokenized bank deposits. They apply to domestic companies and foreign service providers serving users in Nigeria, regardless of whether they maintain a physical presence in the country.
The regulator established separate licensing categories for issuers of stablecoins pegged to the Nigerian naira and foreign currencies. Applicants must establish a legal entity in Nigeria, maintain local management, and meet minimum paid-up capital requirements:
- 10 billion naira for issuers of naira-pegged stablecoins;
- 15 billion naira for issuers of foreign currency-pegged stablecoins;
- 1 billion naira for providers of other digital asset services, including exchange, custody, and transfers.
Stablecoin issuers must also obtain CBN approval for each token they issue. Foreign licenses don’t replace local registration and authorization requirements. Companies already regulated by Nigeria’s Securities and Exchange Commission (SEC) can obtain additional authorization to provide digital asset payment services.
The regulations place particular emphasis on stablecoin reserve backing. Issuers must meet the following requirements:
- Reserve backing: Maintain reserves covering at least 100% of the value of issued tokens, plus an additional buffer of at least 2%.
- Reserve liquidity: Hold at least 40% of their reserve pool in cash and high-quality liquid assets.
- Reserve placement: Issuers of naira-pegged stablecoins must hold at least 20% of their reserve pool directly with the Central Bank of Nigeria.
Issuers of foreign currency-pegged stablecoins face a separate operational liquidity requirement. They must maintain an amount equal to the highest of 3 thresholds: $10 million, 15% of outstanding liabilities attributable to Nigerian users, or the amount needed to cover liquidity outflows over a 30-day stress period.
Stablecoin holders have a legally enforceable right to redeem their tokens at par value no later than the end of the next business day after a valid request is received. In exceptional circumstances, the CBN may extend the deadline to 5 business days. Standard redemptions must be free of charge, and issuers are prohibited from paying interest or other returns simply for holding stablecoins.
The new rules prohibit the issuance and trading in Nigeria of algorithmic stablecoins without full reserve backing, tokens backed primarily by other cryptocurrencies, and assets that don’t give holders a legally enforceable right to redemption at par.
Separate restrictions apply to platforms facilitating peer-to-peer (P2P) cryptocurrency trading. Operators must obtain specific CBN authorization, verify participants’ identities, and ensure that bank account details match verified customer information. Conversions between the naira and foreign currency-pegged stablecoins, as well as cross-border transfers, require additional regulatory approval. Crypto companies must also:
- implement automated transaction monitoring systems;
- comply with anti-money laundering requirements;
- collect and transmit the required information about transfer senders and recipients.
Transactions of $1,000 or €1,000 or more are subject to enhanced identification requirements. Transaction records must be retained for at least 5 years, while suspicious transactions must be reported to Nigeria’s financial intelligence unit within 24 hours of suspicion arising.
Systemically important stablecoins are subject to additional oversight. A stablecoin receives this designation if the value of tokens in circulation exceeds 500 billion naira for 30 consecutive days or if it has more than 5 million users in Nigeria. Issuers of these assets must provide real-time reserve data and conduct stress tests at least twice a year.
In July 2026, Nigeria also approved rules to coordinate cryptocurrency regulation, including the establishment of an interagency council and a unified framework for cooperation among government authorities.
