The Central Bank of Nigeria has issued the "Regulations on the Operation of Non-Securities Virtual Assets in Nigeria," which establishes a licensing and regulatory framework for stablecoins, deposit money tokens (DMTs), and related virtual asset service providers. Security virtual assets are regulated by the Nigerian SEC.
The regulations categorize stablecoins into Naira stablecoins and foreign currency stablecoins. Foreign currency stablecoins must be issued by entities registered in Nigeria and holding a Type II issuing license, and can only be offered to Nigerian users after approval from the Central Bank.
The minimum paid-up capital for issuers in categories one and two is 10 billion Naira (approximately US$7.41 million) and 15 billion Naira (approximately US$11.12 million), respectively, while other service providers require 1 billion Naira (approximately US$740,000). Stablecoins must have a 1:1 reserve ratio with an additional 2% over-collateralization. Holders can redeem their coins at par value on the next business day. Issuers are prohibited from paying interest or returns. Algorithmic stablecoins and fiat-backed stablecoins primarily backed by crypto assets are prohibited.
Existing operators must apply for a license within 180 days of the regulations taking effect and register with the central bank within 30 days. During the transition period, they can only maintain their existing business scale. The same applies to P2P trading platforms.
