The Central Bank of Nigeria (CBN) has introduced a new regulatory framework for non-security virtual assets, setting strict financial and operational requirements for digital asset providers operating in the country.
According to an official circular issued by Musa Jimoh, issuers of foreign currency-backed stablecoins, including USDT and USDC, must maintain a minimum paid-up capital of ₦15 billion. They must also register a local company and establish a physical office with staff in Nigeria.
The CBN just set the rules for stablecoins in Nigeria.
Any company that wants to issue a foreign currency stablecoin, like a digital dollar, now needs at least ₦15 billion in paid-up capital. That’s about $11 million.
It also has to be incorporated in Nigeria, hold a CBN licence, and run a staffed office here with local management.
Peer-to-peer crypto trading is getting stricter too, with tougher approval and identity checks.
To put that in perspective, in 2021 the CBN told banks to stop servicing crypto accounts. That pushed many Nigerians into peer-to-peer trading. The directive was reversed in 2023.
Now the CBN isn’t trying to ban crypto. It’s trying to control who gets to play.
Good for safety. Tough for small players.
Do you think these rules will protect Nigerians or push them back into the shadows?
— Toby (@TomolaGroup) November 6, 2026
While issuers of Naira-backed stablecoins face a minimum capital requirement of ₦10 billion, other Virtual Asset Service Providers (VASPs) must maintain at least ₦1 billion.
The framework also bans algorithmic stablecoins and requires all stablecoins to be fully backed by eligible reserves before they can be issued. Issuers must allow users to redeem their tokens at face value by the next business day without standard redemption fees.
The CBN will also introduce stricter oversight for stablecoins with a circulation exceeding ₦500 billion or a user base of more than five million Nigerians.
Read also: Brazil, US and Nigeria Lead Global Crypto Adoption Rankings
High capital requirements could limit market competition
The new framework moves Nigeria’s cryptocurrency market away from a loosely regulated environment towards a more institutionalized financial system.
ShieldClaw Dev on X @Segun observed that the ₦15 billion capital requirement shows that the government is not trying to ban cryptocurrency. Instead, the CBN is setting financial requirements that could push smaller companies out of the market.
@TechCabal ₦15 billion in paid-up capital for foreign stablecoin issuers.
Nigeria is not banning crypto.
It is pricing out the thin balance sheets.— Segun Cole (@IamSegunCole) November 6, 2026
Under the new rules, only well-funded companies and established financial institutions may be able to afford the capital and operational costs required to issue stablecoins legally in Nigeria.
However, the requirements have also raised concerns about competition. Another commenter on X, Denen, noted that stablecoins have become an important part of how Nigerians participate in the digital economy.
Denen questioned whether requiring foreign stablecoin issuers to establish licensed local companies would make the market safer or simply prevent smaller businesses from competing. The high cost of meeting these requirements could leave the market in the hands of a few large companies with enough financial resources to operate.
stablecoins have become an important part of how people interact with crypto in Nigeria.
now the CBN wants foreign issuers to establish licensed local entities and meet a ₦15 billion capital requirement.
interesting development.
will this create a more structured stablecoin market, or make it harder for smaller players to enter?
— Denen (@0xDenen) November 6, 2026
Read also: What Do People Actually Use Crypto For? Nigeria vs the United Kingdom
Tighter controls raise concerns over Nigerians’ financial freedom
While the CBN says the new rules are intended to protect financial stability, some Nigerians see them as restrictions on their ability to manage their money.
A crypto trader on X, @ King Onyebuchi, questioned the government’s intentions behind the regulations. King argued that the rules are less about protecting the wider economy and more about controlling ordinary Nigerians who rely on cryptocurrency to cope with difficult economic conditions.
He also pointed to what they described as a contradiction in the government’s approach to financial oversight. According to King, financial scams and the misuse of public funds continue within government institutions without effective action, while ordinary citizens face tighter restrictions on their financial activities.
@NigeriaStories One thing most people don’t get is, “the rules aren’t made for everyone, the rules are made for the ordinary people trying to survive”.
There are heavy scams and looting going on every minute within the corridors of govt yet no measures to stop it. https://t.co/iP3fSzQHyw
— King Onyebuchi (@Onyebuchi228) November 6, 2026
These reactions reflect the lack of trust some cryptocurrency users have in Nigerian institutions. They believe the government is paying more attention to controlling decentralized financial options and P2P trading networks than addressing corruption and financial misconduct within its own institutions.
Meanwhile, Nigeria has stepped up efforts to regulate its digital asset sector following President Bola Ahmed Tinubu’s signing of the Presidential Executive Order on Virtual Assets Coordination, 2026, on July 17, 2026. The government has also brought cryptocurrency profits and blockchain-based assets into its tax system, with the Nigeria Revenue Service (NRS) issuing its first comprehensive Guidelines on Taxation of Virtual Assets.
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