Nigeria has introduced strict new regulations for stablecoins, positioning itself as one of the most restrictive markets for digital asset access. Effective from November 5, the Central Bank of Nigeria (CBN) requires foreign stablecoin issuers to establish a locally licensed operation before offering their tokens to Nigerian retail customers. This includes obtaining a Class 2 issuer license and maintaining a paid-up capital of at least NGN15 billion (approximately $11.1 million) in Nigeria.
The regulations categorize stablecoins into two classes: Class 1 for naira-pegged tokens and Class 2 for foreign-currency-backed tokens like USDT or USDC. Foreign issuers must secure CBN approval for their tokens and appoint a Nigerian bank to handle local redemption requests. Additionally, stablecoins must be fully backed by assets denominated in their reference currency, with a 2% buffer.
The new framework also mandates separate approvals for payment functions, such as peer-to-peer transfers, merchant payments, and remittances. Providers of these services must maintain an additional NGN1 billion (approximately $741,000) in capital. Conversions between naira and foreign-currency stablecoins may require authorized foreign-exchange channels and specific CBN approval.
Existing stablecoin operators have 180 days to apply for the new licenses but can continue operations at their current scale during the transition. They must register within 30 days and begin supervisory reporting within 60 days. The regulations aim to ensure that stablecoin issuance, conversion, and payment functions pass through locally supervised companies and approved financial channels.