Nigeria’s central bank introduced licensing requirements for stablecoin issuers and other non-security virtual asset service providers under regulations that took effect on Nov. 5, 2026, according to The Block’s report published on Nov. 6, 2026, at 19:42:42 UTC+8.
The framework creates separate licensing categories for naira-referenced and foreign-currency-referenced stablecoins. Existing operators have 180 days to apply for the appropriate licence or authorization, subject to transitional requirements.
Licensing and cross-border scope
According to a Central Bank of Nigeria (CBN) circular to relevant stakeholders, the rules cover activities conducted in Nigeria or affecting its payments system, financial sector or foreign exchange market—even when an operator has no physical presence in the country.
Foreign-currency stablecoins may only be offered, distributed, exchanged or otherwise made available to Nigerians as Class 2 tokens issued through a Nigerian-incorporated entity holding a Foreign Currency Issuer Licence.
Issuers must also obtain written CBN approval for each token before issuance. That approval covers the token’s classification, reference currency, reserve arrangements, name, ticker and supported blockchain networks.
Algorithmic stablecoins prohibited
The regulations prohibit algorithmic stablecoins, including tokens that rely primarily on market dynamics rather than eligible reserve assets to maintain their value.
The framework also 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.
Responsibilities split between the CBN and SEC
The CBN’s remit under the framework covers stablecoins and virtual assets used for payments, transfers, remittances, foreign exchange and settlement. Nigeria’s Securities and Exchange Commission retains oversight of securities and capital-market activities.
Companies operating in both areas must obtain the relevant approvals from each regulator.