Nigeria’s Central Bank Sets New Rules for Crypto Payments and Stablecoins

Source date: 6 November 2026. The Central Bank of Nigeria (CBN) issued its Regulations for the Operations of Non-Security Virtual Assets in Nigeria on 5 November 2026.

Nigeria’s Central Bank has drawn a new regulatory map for stablecoins and other crypto services tied to payments. Its framework sets licensing and capital rules for non-security virtual assets, while spelling out when providers may need separate approval from the Securities and Exchange Commission (SEC). The key distinction is practical: permission to trade crypto does not automatically authorize a company to use it for payments, remittances or settlement.

What the CBN’s new framework covers

The CBN’s rules cover regulated activity carried out in or from Nigeria, directed at people in the country, or likely to materially affect its payment system, financial system or foreign-exchange market. The regulator says it will look at what a token or service does, not merely the name or technology used to describe it.

The list includes issuing and distributing regulated tokens, exchange and conversion, fiat on- and off-ramps, custody and wallet services, transfers and remittances, payment gateways, merchant acceptance and settlement infrastructure. A provider based abroad is not automatically outside the rules if it markets a covered service to Nigerian users.

The framework is limited to non-security virtual assets and related activity within the CBN’s remit. Securities, investment contracts and capital-market products remain under the SEC. Where a business conducts activities that fall under both authorities, it may need the relevant permissions from each; one regulator’s licence is not a blanket approval for every crypto product.

Three capital thresholds — and what they do not mean

The regulations set minimum paid-up capital at ₦10 billion for issuers of naira-referenced Class 1 stablecoins and ₦15 billion for issuers of foreign-currency-referenced Class 2 stablecoins. Other covered non-issuance service providers face a ₦1 billion minimum under the applicable licence or authorization route.

Those figures are operating-capital thresholds, not the reserves backing tokens in circulation. The CBN says required capital must be separate from and additional to issuer reserves, customer funds and assets, its reserve deposit and operational liquidity. Firms cannot reuse the same capital to satisfy separate CBN and SEC obligations.

For foreign-currency stablecoins, the CBN requires issuance through a Nigerian-incorporated entity with the appropriate licence. That puts local incorporation and ongoing supervisory access alongside capital and reserve readiness as conditions for serving the market.

Reserves, redemption and stablecoins the rules prohibit

The framework requires eligible reserve assets and bars an issuer from minting tokens before equivalent reserves have been received and placed in the reserve pool. Naira-referenced stablecoins must reference the naira one-to-one and use eligible naira-denominated reserves. The exact permitted reserve assets and operational duties are set out in the regulation.

Holders must have an enforceable right to redeem at par. The rules generally require a valid redemption request to be met no later than the next business day, subject to the regulation’s terms. That standard does not necessarily mean every person holding an offshore token can redeem directly with its issuer; access may depend on the licensed issuer, distributor and customer eligibility.

The CBN also prohibits algorithmic stablecoins that rely mainly on supply adjustments rather than full reserve backing. The restrictions include tokens that reference fiat but are backed wholly or primarily by other virtual assets, and products presented as stablecoins without an enforceable par-redemption right. The test is about the backing and legal rights, not simply whether a token has usually traded near its target price.

P2P platforms face identity and payment matching rules

Platform-facilitated peer-to-peer services require a separate CBN approval. Before releasing or crediting a regulated token in a naira P2P transaction, a covered platform must verify that the name linked to the bank payment matches the verified customer, including the Bank Verification Number (BVN) requirement described in the rules. Providers also face customer-due-diligence, recordkeeping and monitoring obligations.

The aim is to connect the fiat payment to the corresponding token transfer, rather than treat them as unrelated legs. For a user, that could mean less flexibility to pay from or receive into somebody else’s account. For a provider, it means more identity checks, payment matching and records to maintain. The exact duties depend on the service and transaction covered by the regulation.

What changes for exchanges, stablecoin firms and users

For an exchange, the first task is to map each product to the activity it performs. Trading or investment services may fall under SEC rules, while payment gateways, stablecoin distribution or remittance functions can trigger CBN requirements. A firm that offers both should identify which approval applies to each service and whether a second regulator is involved.

For issuers, capital is only one part of the compliance picture. Local licensing, reserve management, redemption operations, governance, reporting, cybersecurity and anti-money-laundering controls also matter. The higher threshold for foreign-currency issuers could increase the cost of serving Nigeria, although the effect on availability will depend on licensing and implementation.

For customers, these rules are not a new tax and do not say that holding Bitcoin or using every wallet is automatically prohibited. They regulate specified services and instruments within the CBN’s remit. Users of regulated stablecoin and P2P services may, however, face more identity checks and could see changes in which providers can lawfully serve them.

The regulations are published; implementation details matter

The CBN document sets out the framework, but firms still need to work from its operative provisions and any follow-up notices for exact application, transition and compliance dates. News reports on the release have highlighted different parts of the rules; businesses should not infer a deadline from a headline or assume that an existing registration covers a newly regulated payment service.

The regulation’s overall direction is toward activity-specific permissions and operational controls. Nigeria is treating stablecoins as part of payment and financial infrastructure when they are used for those purposes, while retaining a separate lane for securities. Whether the system enables responsible innovation or narrows the market to a smaller group of well-capitalized providers will depend on how proportionately the rules are applied.