Nigeria splits stablecoins into two licence classes and bans unbacked algorithms
The central bank’s new framework sets local licensing, reserve, redemption and transition rules for non-security virtual assets.
In brief
- Nigeria classifies naira-referenced stablecoins as Class 1 and foreign-currency-referenced stablecoins as Class 2.
- Each stablecoin needs central-bank token approval, while foreign-currency tokens must be issued through a Nigerian-incorporated licensed entity.
- Existing operators have 180 days to apply, but earlier registration, compliance and reporting milestones apply during the transition.
What changed
The Central Bank of Nigeria issued regulations dated 5 November 2026 for non-security virtual assets used in payments, transfers, remittances, custody, clearing and settlement. The framework separates stablecoins into naira-referenced Class 1 tokens and foreign-currency-referenced Class 2 tokens. It treats stablecoins maintained mainly through algorithmic supply or demand adjustments, rather than full eligible-reserve backing, as prohibited tokens. The rules also cover deposit money tokens and platform-facilitated peer-to-peer services, while leaving securities and investment contracts within the Securities and Exchange Commission’s remit.
A licence does not automatically approve a token
An issuer needs the appropriate CBN licence and separate approval for each token before issuance. Class 1 issuers require a naira-referenced issuer licence. A foreign-currency stablecoin may be made available in Nigeria only as a Class 2 token issued through a Nigerian-incorporated entity holding a foreign-currency issuer licence; a foreign licence or a relationship with a local intermediary is not a substitute. Service providers that do not issue tokens have separate licensing or authorisation routes. The document also says a CBN approval is not an endorsement or guarantee, and covered stablecoins must not be presented as bank deposits or as protected by Nigeria’s deposit insurance.
Reserve and redemption obligations are central
Licensed issuers must give holders an enforceable right to redeem at par, subject to the limited exceptions in the regulations. They must publish a monthly reserve attestation prepared by an approved independent auditor under ISAE 3000 (Revised), or an accepted equivalent, within 15 business days after month-end. The report must address circulation, reserve value and composition, segregation, concentration and whether backing requirements were met. These attestations are assurance reports defined by the regulation, not a promise that a token is risk-free.
The transition starts before the application deadline
Existing operators have 180 calendar days from commencement to apply for the relevant licence or authorisation. Continuing during that period is conditional: an operator must register with the CBN within 30 days, comply with anti-money-laundering requirements from commencement, begin supervisory reporting within 60 days or an earlier prescribed period, remain at its existing scale and submit a complete application within the transition window. The CBN can still issue implementation forms and directions, so practical filing details may evolve even though the regulatory obligations are now stated.
Sources and verification
Based on an official announcement
Verified against the CBN circular and attached regulations dated 5 November 2026. This report describes the rules as issued; it does not imply that any issuer or token has received approval.
- Regulations for the Operations of Non-Security Virtual Assets in Nigeria Central Bank of Nigeria · Primary document · 5 Nov 2026
Prepared with AI assistance from the linked sources. This is not a claim of independent field reporting or human review. How we publish · Report a correction
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