Nigeria Erects Strict Stablecoin Wall, Demanding $11M Local Subsidiaries for US Dollar Tokens

Nigeria has adopted regulations for non-security virtual assets that make it one of the most restrictive stablecoin market-access regimes currently in force.

According to the document, published by the Central Bank of Nigeria (CBN), foreign issuers must build a locally licensed operation before making their tokens available to retail customers.

New rules combine local incorporation, token-level approval, capital requirements and separate permissions for payment functions.

The regulations, effective from 5 November, apply to overseas companies targeting Nigerian users even when those businesses have no physical presence in the country.

Dollar Stablecoins Need a Nigerian Issuer The CBN divides stablecoins into two categories.

Class 1 covers tokens pegged to the naira, while Class 2 applies to those referencing foreign currencies, such as dollar-backed tokens USDT or USDC.

Foreign issuers are effectively cut off from the local retail customers until they establish a Nigerian company, obtain Class 2 issuer licence, and CBN approval for their tokens That local company must maintain at least NGN15 billion (approximately $11.1 million) in paid-up capital and provide operational liquidity for redemptions in Nigeria.

Tokens must be fully backed by assets denominated in their reference currency, with an additional 2% buffer.

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