The Central Bank of Nigeria has imposed licensing requirements on stablecoin issuers and banned algorithmic stablecoins.
The Central Bank of Nigeria’s regulation, which took effect on November 5, 2026, allows foreign-currency-referenced stablecoins to be offered in the country only through licensed Nigerian entities.
The regulation also imposes licensing requirements on stablecoin issuers and other virtual asset service providers that are not classified as securities.
A circular sent to stakeholders established separate license categories for naira- and foreign-currency-referenced stablecoins. Issuers must also obtain approval from the central bank for each token before launching it. The approval application covers the token’s class, reference currency, reserves, name, symbol, and the blockchain networks it supports.
Local licensing required for foreign-currency stablecoins
Foreign-currency-referenced stablecoins may be offered to Nigerians only as Class 2 tokens and through an entity established in Nigeria that holds a license called the Foreign Currency Issuer Licence. The ban covers tokens that maintain their value primarily through market movements rather than eligible reserve assets.
The rules also include obligations such as customer identification, sanctions screening, and transaction monitoring. These obligations cover custodial wallets, peer-to-peer transactions, and money transfer channels. Existing operators have been given 180 days to obtain the appropriate license or authorization; applications will be subject to transition conditions.
The regulation covers activities conducted in Nigeria or affecting the country’s payment system, financial sector, or foreign exchange market; operators are not required to have a physical presence in the country. While the central bank oversees virtual assets used for payments and transfers, securities and capital market activities remain under the authority of the Securities and Exchange Commission. Companies operating in these areas must obtain separate approvals from the relevant authorities.
Not investment advice.