The Central Bank of Nigeria (CBN) has issued a comprehensive regulatory framework for non-security virtual assets, creating formal rules for stablecoins, tokenised bank deposits and virtual asset service providers operating in the country. The regulations took effect on 5 November 2026.
The framework establishes licensing, authorisation, supervision and operational requirements for businesses involved in issuing, distributing, exchanging, transferring, storing and settling non-security virtual assets. It also covers stablecoins, Deposit Money Tokens (DMTs), payment gateways, remittance services and platform-facilitated peer-to-peer transactions.
Under the new rules, entities seeking to issue naira-referenced stablecoins must maintain a minimum paid-up capital of ₦10 billion, while issuers of foreign-currency-referenced stablecoins must hold at least ₦15 billion in paid-up capital. Providers of other non-security virtual asset services must maintain a minimum paid-up capital of ₦1 billion.
The regulations prohibit algorithmic stablecoins and stablecoins backed primarily by other virtual assets. The CBN said all approved stablecoins must be fully backed by eligible reserve assets and provide holders with a legally enforceable right to redeem their tokens at par value. Stablecoin issuers must also maintain reserve holdings that match or exceed the value of tokens in circulation and meet prescribed liquidity and reporting requirements.
The framework introduces two categories of stablecoins: naira-referenced stablecoins and foreign-currency-referenced stablecoins. Foreign-currency stablecoins may only be made available in Nigeria through locally incorporated entities holding a CBN licence and token approval. Their use will remain subject to Nigeria’s foreign-exchange regulations.
The regulations also permit banks to issue Deposit Money Tokens, which represent existing naira-denominated deposit liabilities. Such tokens may be issued only by CBN-licensed Deposit Money Banks and will require prior approval from the apex bank.
Platform-facilitated peer-to-peer virtual asset services will be allowed under the framework but must obtain specific approval from the CBN. Operators will be required to comply with customer identification, anti-money laundering, sanctions screening, transaction monitoring and reporting obligations.
The CBN said the regulations are intended to support innovation while safeguarding financial stability, consumer protection, payment-system integrity, foreign-exchange management and compliance with anti-money laundering and counter-terrorism financing requirements.
The framework also clarifies the division of regulatory responsibilities between the CBN and the Securities and Exchange Commission.
Under the arrangement, the CBN will regulate non-security virtual assets used for payments, settlement and value transfer, while the SEC will continue to oversee security tokens and virtual assets that qualify as investment products or securities.
