Nigeria’s Central Bank issued sweeping regulations for cryptocurrency payment services and stablecoin issuers on November 6, 2026, banning algorithmic stablecoins and imposing strict reserve requirements on the sector.
The Regulations for the Operations of Non-Security Virtual Assets took effect immediately. The framework prohibits algorithmic stablecoins and any tokens lacking enforceable redemption rights. Stablecoin issuers must fully back tokens with reserve assets, with at least 40% consisting of cash or highly liquid instruments. Issuers must also maintain an additional buffer equal to at least 2% of token value.
Capital requirements vary by token type. Naira-backed stablecoin issuers must hold a minimum paid-up capital of 10 billion naira ($7.4 million). Foreign currency-backed stablecoin issuers face a higher threshold of 15 billion naira ($11.1 million). Crypto payment service providers must maintain minimum paid-up capital of 1 billion naira ($742,000).
Existing operators have 180 days from November 6, 2026 to apply for licenses under the new framework.
The Central Bank of Nigeria said the regulations aim to support responsible innovation while protecting consumers and financial stability.
Background on Nigerian Crypto Oversight
The regulations represent an expansion of central bank oversight in Nigeria’s crypto sector. President Bola Tinubu issued an executive order on crypto oversight in July, though the exact date and year were not specified.
Binance, the world’s largest cryptocurrency exchange by volume, discontinued its Nigerian naira services in March 2024 amid government scrutiny and currency manipulation allegations. Nigerian authorities detained Binance executive Tigran Gambaryan for nearly eight months before dropping money laundering charges against him in October 2024.
In August 2026, Nigeria’s revenue agency introduced crypto tax collection rules, signaling increased government engagement with the digital asset market.
Nigeria previously limited banking access for exchanges and sought to restrict peer-to-peer trading using local currency. The new stablecoin and payment service regulations consolidate these enforcement efforts under a formal licensing regime managed by the central bank.
