The Central Bank of Nigeria has set minimum capital requirements of N10 billion and N15 billion for Class 1 and Class 2 stablecoin issuers respectively, according to a circular issued on November 5, 2026. The directive, signed by the Director of Payments Systems Policy, Musa Jimoh, requires both classes of licensed issuers to maintain these paid-up capital amounts on entry into the market and at all times thereafter. The CBN said it may prescribe higher amounts as needed, and that there is no exemption from incorporation, licensing or capital requirements for offshore issuers.
Class 1 issuers operate stablecoins designed to maintain a stable value against the naira, while Class 2 issuers provide digital tokens pegged to foreign currencies such as the US dollar. The CBN acknowledged that virtual assets, stablecoins and tokenised payment instruments create significant opportunities for innovation in payments, remittances, settlement and digital commerce. However, the bank said their growing adoption also introduces risks to financial stability, monetary policy, consumer protection, illicit finance, operational resilience and foreign exchange management.
The guidelines establish a risk-based framework for licensing, regulation, supervision and oversight of virtual asset providers, including stablecoin issuers, Deposit Money Token providers and Virtual Asset Service Providers. The CBN said the framework seeks to support responsible innovation while protecting the integrity, stability and efficiency of Nigeria's financial system. It also sets requirements for governance, prudential standards, consumer protection, operational resilience, anti-money laundering and counter-terrorism financing compliance, and reporting obligations for entities engaged in regulated virtual asset activities within or involving Nigeria.
The new regulations place significant compliance responsibilities on issuers to prevent money laundering and terrorism financing. Virtual asset providers must apply enhanced due diligence and transaction limits to customers identified as posing higher risk, and report such customers to the CBN. The guidelines cover naira-referenced stablecoins, foreign currency-referenced stablecoins, Deposit Money Tokens and any other tokens the CBN designates as regulated under the new rules.
For savers and businesses in Nigeria, the capital requirements mean stablecoin issuers must hold substantial reserves, potentially providing greater protection against issuer insolvency, fraud and denial of redemption rights. The CBN said the guidelines were issued to establish a comprehensive regulatory framework governing the issuance, distribution, custody, transfer and redemption of virtual assets, while preserving the effectiveness of the bank's monetary policy and its ability to monitor capital flows and foreign exchange dynamics.