Central Bank of Nigeria issues licensing regulations for stablecoins and non-security virtual asset services

What happened

The Central Bank of Nigeria (CBN) listed its Regulations for the Operations of Non-Security Virtual Assets in Nigeria (PSP/DIR/PUB/CIR/001/004) on 5 Nov 2026. The CBN issues them as a risk-based framework for licensing, regulating and supervising non-security virtual assets, including stablecoins, Deposit Money Tokens and related virtual asset service providers (VASPs). It issues them in accordance with the Presidential Executive Order on Virtual Assets Coordination, 2026. Virtual assets that are securities stay under the Securities and Exchange Commission (SEC).

What changed

Under the Regulations, no person may conduct a regulated activity without the licence, authorisation or approval the Regulations require. The Regulations list six: a Naira-referenced Issuer Licence (Class 1), a Foreign Currency Issuer Licence (Class 2), an Other Services Licence, an Other Services Authorisation, an Approval to Extend Permitted Activities and a Deposit Money Token Licence.

A foreign-currency-referenced stablecoin may be made available to persons in Nigeria only as a Class 2 Stablecoin issued through a Nigerian-incorporated entity holding the Class 2 licence. The Regulations say a foreign licence, or an arrangement with a Nigerian intermediary, does not substitute for that licence or for Token Approval.

A Class 1 issuer must hold paid-up capital of ₦10 billion and a Class 2 issuer at least ₦15 billion. A provider of other non-security virtual asset services must hold at least ₦1 billion. In each case the CBN may prescribe a higher amount. For an SEC licence holder, the ₦1 billion is additional to the SEC's own capital requirement.

Prohibited tokens include algorithmic stablecoins, fiat-referenced tokens backed wholly or primarily by other virtual assets, and tokens marketed as stablecoins that give holders no enforceable right of redemption at par.

Section 10 sets rules for platform-facilitated peer-to-peer services, including, where applicable, the Naira or other fiat leg.

Who is affected

The Regulations reach issuers, including foreign issuers whose tokens are made available to persons in Nigeria, whether or not they have a physical presence there. They also reach exchanges, wallet providers, custodians, payment providers and peer-to-peer platforms. An SEC-licensed VASP needs an Other Services Authorisation before it provides non-issuance services for non-security virtual assets.

What happens next

An existing operator must apply for its licence or authorisation within 180 calendar days of commencement. During that period it may continue only at its existing scale and under CBN interim conditions, provided it registers with the CBN within 30 days, complies with AML/CFT/CPF requirements from commencement and begins supervisory reporting within 60 days or an earlier prescribed period. An operator that does not submit an application in time must stop until it obtains the licence or authorisation. The CBN will assess existing Class 2 arrangements against the Nigerian incorporation and licensing requirements. Section 56.1 says the CBN specifies the commencement date in the issuing instrument.