The Central Bank of Nigeria has rolled out comprehensive regulations to intensify oversight in the country’s expanding cryptocurrency market. The new legislative framework targets stablecoin issuers, crypto payment service providers, exchanges, custodians, and similar operators.
Immediate Effect of New Regulations
Released on Thursday, the new rules concerning Non-Security Virtual Assets Operations grant existing players a 180-day window to apply for licenses or authorization. The Central Bank emphasized that this initiative is designed to support responsible innovation while safeguarding consumers and preserving financial stability.
The regulation follows a decree issued by President Bola Tinubu in July. This move seeks to coordinate crypto supervision among Nigerian public institutions without altering the current powers of these entities.
Nigeria’s Central Bank affirmed that the new framework aims to nurture responsible innovation while enhancing consumer protection and bolstering financial stability.
Capital and Reserve Mandates for Stablecoin Issuers
Under the new rules, stablecoin issuers must fully back their issued tokens with suitable reserve assets. Furthermore, an additional buffer equivalent to at least 2% of the token‘s value must be maintained. At least 40% of the reserves should be in cash or assets with high liquidity.
The minimum paid-up capital is set at 10 billion naira for naira-backed stablecoin issuers, while those backed by foreign currencies need 15 billion naira. Companies offering payment-focused crypto services, conducting exchange, or custodian operations are required to hold a minimum of 1 billion naira in paid-up capital.
The regulations ban stablecoins predominantly reliant on algorithmic mechanisms to maintain value. Tokens without clear, enforceable redemption rights are also disallowed under the new framework.
The new directive effectively bars stablecoin models that lack full reserve backing or fail to offer explicit redemption guarantees.
Nigeria’s Tightening Crypto Stance
As one of Africa’s largest crypto markets, Nigeria has recently adopted a more restrictive stance towards digital asset transactions. Authorities have previously limited exchange access to banking services and moved to suppress peer-to-peer transactions in local currency.
The nation gained international attention due to tensions with Binance, the world’s largest cryptocurrency exchange by trading volume. Binance halted naira services in March 2024, amid government scrutiny of crypto transactions and allegations of currency manipulation.
Nigerian officials detained Binance executive Tigran Gambaryan for about eight months before dropping money laundering charges in October 2024. More recently, in August 2026, the country’s tax authority instituted crypto tax collection rules for digital asset platforms and peer-to-peer marketplaces.
