# Nigeria Requires Local Licenses for Foreign-Currency Stablecoins

By Riza Dagoc

Canonical URL: https://www.tokenpost.com/news/regulation/51282
Published: 2026-11-08T02:19:26.000Z
Updated: 2026-11-08T02:19:26.000Z
Section: Regulation

> The rules require central bank approval before these stablecoins can be offered to Nigerian users and set a $11.12 million minimum capital requirement for issuers.

Nigeria’s central bank has set local licensing requirements for foreign-currency stablecoin issuers, requiring central bank approval before their tokens can be offered to Nigerian users.

The Central Bank of Nigeria’s framework covers stablecoins, deposit money tokens and related virtual asset services, including issuance, exchange, custody and payments. Foreign-currency stablecoins must come from entities registered in Nigeria and holding a local issuer license; a foreign license is not sufficient.

The minimum capital requirement is about $11.12 million for foreign-currency stablecoin issuers and $7.41 million for naira stablecoin issuers. Other virtual asset service providers face a $740,000 minimum.

The rules require stablecoins to maintain reserves at a 1-to-1 ratio, plus 2% additional collateral. Holders must be able to redeem tokens at face value by the next business day. Issuers may not pay holders interest or yield, and the framework bars algorithmic stablecoins and fiat-backed stablecoins whose reserves mainly consist of crypto assets.

Existing operators, including peer-to-peer trading platforms, must register with the central bank within 30 days and apply for licenses within 180 days after the rules take effect. During the transition period, they may continue operating only at their existing scale. Securities-related virtual assets remain under Nigeria’s Securities and Exchange Commission.