Nigeria's central bank has rolled out new licensing and reserve requirements for cryptocurrency companies, tightening oversight of stablecoins and digital asset payment services in one of Africa's largest crypto markets.

The Central Bank of Nigeria (CBN) issued the Regulations for the Operations of Non-Security Virtual Assets on Thursday, establishing rules for stablecoin issuers, crypto payment providers, exchanges, custodians and other covered service providers. The rules took effect immediately, though existing operators have 180 days to apply for licenses or authorizations.

According to the CBN, the framework is designed to support responsible innovation while protecting consumers and preserving financial stability. The move follows a July executive order by President Bola Tinubu, which sought to coordinate crypto oversight among Nigerian authorities without altering their existing powers. The new regulations translate that push into specific central bank rules, spelling out which virtual asset activities now fall under CBN supervision.

Stablecoin issuers face new capital and reserve rules

Under the new regulations, stablecoin issuers must fully back their tokens with reserve assets and maintain an additional buffer worth at least 2% of the tokens' value. At least 40% of reserves must consist of cash or qualifying highly liquid assets.

Minimum paid-up capital is set at 10 billion naira ($7.4 million) for naira-backed issuers and 15 billion naira ($11.1 million) for issuers of foreign currency-backed stablecoins, setting a lower entry bar for tokens tied to the local currency. Companies providing payment-related crypto services, including exchange and custody services, must hold minimum paid-up capital of 1 billion naira ($742,000).

The regulations also prohibit stablecoins that rely primarily on algorithms rather than eligible reserves to maintain their value, as well as tokens that lack enforceable redemption rights. Algorithmic stablecoins hold their peg through code-driven mechanisms instead of reserve assets, a design with a history of failure — the 2022 collapse of TerraUSD erased roughly $40 billion in market value and became a reference point in regulatory debates over the model.

Nigeria's crypto crackdown enters a new phase

Nigeria has historically taken a restrictive stance on crypto trading, previously limiting banking access for exchanges and moving to restrict peer-to-peer trading in the local currency.

The country drew international attention within the crypto industry over its dispute with Binance, the world's largest cryptocurrency exchange by trading volume. Binance discontinued its Nigerian naira services in March 2024 amid government scrutiny of crypto trading and allegations of currency manipulation. Nigerian authorities also detained Binance executive Tigran Gambaryan for nearly eight months before dropping money laundering charges against him in October 2024.

More recently, Nigeria's revenue agency introduced crypto tax collection rules for digital asset platforms and peer-to-peer marketplaces in August 2026. With the CBN framework now in force alongside those tax rules, the developments to watch are which existing operators file license applications during the 180-day window and how the central bank's reserve and capital requirements shape the stablecoin products available to Nigerian users.

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