Nigeria brings in stablecoin licences and bans algorithmic stablecoins

What was adopted. CBN circular PSP/DIR/PUB/CIR/001/004, dated November 5, 2026, is signed by Musa Jimoh, director of the Payments System Policy Department. The 169-page document covers stablecoins, deposit money tokens, crypto service providers, crypto payments, peer-to-peer platforms, custody and transfers. The rules apply from November 5.

Money and licences. Minimum capital is N15 billion for foreign currency stablecoin issuers, N10 billion for naira stablecoins and N1 billion for other crypto service providers. According to Punch, the N1 billion must be kept separate from capital held for Securities and Exchange Commission (SEC) licences. Foreign currency stablecoins can only be offered to Nigerians as Class 2 tokens through a Nigerian-incorporated company with a CBN licence. Each token needs written approval covering its name, ticker, reserves and blockchains (The Block).

Reserves. Naira stablecoins must be fully backed by deposits at the CBN, short-term government debt and bank deposits. At least 20% of the reserve sits as cash in an account at the CBN, plus a 2% buffer on top. Foreign currency stablecoins hold reserves in the same currency, in approved banks and short-term government bonds of that currency's country. Coins must be redeemed at par by the end of the next business day, or within up to 5 business days in a stress event.

The ban. Algorithmic stablecoins, which hold their price mainly through supply rules without full reserves, cannot be issued, offered or traded in Nigeria.

Customer protection. Firms must publish their documents, fees, reserve custodians and attestation reports, and state clearly that tokens are not bank deposits and are not insured. Complaints must be acknowledged within 2 business days and resolved within 20. Existing firms must register with the CBN within 30 days and apply for a licence within 180 days.

Confirmed facts

• The Central Bank of Nigeria issued circular PSP/DIR/PUB/CIR/001/004, dated November 5, 2026, with rules for non-security virtual assets.^[1]
• The rules took effect on November 5, 2026.^[1][2]
• Minimum capital is N15 billion for foreign currency stablecoin issuers, N10 billion for naira stablecoin issuers and N1 billion for other crypto service providers.^[1][3]
• Algorithmic stablecoins may not be issued, offered or traded in Nigeria.^[1][2]
• Foreign currency stablecoins can only be offered to Nigerians through a Nigerian company holding a Foreign Currency Issuer Licence.^[2]
• Each token needs written CBN approval, including its reserves, ticker and blockchains.^[2]
• At least 20% of a naira stablecoin's reserve must be held as cash at the CBN, plus a 2% overcollateralisation buffer.^[1]
• Stablecoins must be redeemed at par by the end of the next business day, or up to 5 business days in a stress event.^[1]
• Existing firms have 180 days to apply for a licence and 30 days to register with the CBN.^[1][2]
• Nigeria's SEC keeps oversight of virtual assets that are securities; firms active in both areas need both approvals.^[1][2]
• The circular is signed by CBN Payments System Policy director Musa Jimoh.^[1][3]

Implications

• ConfirmedExchanges and wallets serving Nigerians will need a CBN licence within 180 days.
• Our readingBig foreign issuers such as Tether and Circle would need a licensed local company to serve Nigeria directly. This is our view.
• Our readingThe high capital bar may leave only large players in the market. This is our view.

Still unknown

• Which stablecoins and firms get approved first
• How the rules apply to foreign exchanges without a Nigerian office
• How Tether and Circle respond

Who it affects

Nigeria, Africa, Global. People who use stablecoins, crypto exchanges and wallets in Nigeria and Africa

Sources

1. Central Bank of Nigeria: Regulations for the Operations of Non-Security Virtual Assets in Nigeria November 5, 2026 · official
2. The Block: Nigeria's central bank introduces stablecoin licensing rules, bans algorithmic versions November 6, 2026 · media
3. Punch: CBN sets N15bn capital requirement for dollar stablecoin issuers November 6, 2026 · media