The Central Bank of Nigeria (CBN) has introduced licensing requirements for stablecoin issuers and other non-security virtual asset service providers. The regulations, which took effect on November 5, 2026, create separate licensing categories for naira-referenced and foreign-currency-referenced stablecoins.
Issuers must obtain written approval for each token before beginning issuance. Approval covers the token’s classification, reference currency, reserve arrangements, name, ticker, and supported blockchain networks, according to a CBN circular issued to stakeholders.
The rules apply to activities carried out in Nigeria or those affecting the country’s payments system, financial sector, or foreign exchange market, even if the operator has no physical presence in Nigeria.
Foreign-currency stablecoins can only be offered, distributed, exchanged, or otherwise made available to Nigerians as Class 2 tokens. These must be issued through a Nigerian-incorporated entity that holds a Foreign Currency Issuer Licence.
The framework requires compliance with anti-money laundering and counter-terrorist financing obligations. Entities must implement customer due diligence, sanctions screening, transaction monitoring, and Travel Rule compliance across custodial wallets, peer-to-peer services, and remittance channels.
Algorithmic stablecoins are explicitly prohibited. The CBN’s circular states that the ban covers tokens that rely primarily on market dynamics, rather than eligible reserve assets, to maintain their value.
The CBN holds authority over stablecoins and virtual assets used for payments, transfers, remittances, foreign exchange, and settlement. The Securities and Exchange Commission retains oversight of securities and capital-market activities; companies operating in both areas must obtain relevant approvals from each regulator.
Existing operators have 180 days to apply for the appropriate licence or authorization, subject to transitional requirements.
Source (published November 6, 2026)