Nigeria Orders $11.16M Capital Floor for Foreign Stablecoin Issuers

The Central Bank of Nigeria dropped new rules Thursday, Nov. 5, requiring locally licensed issuers of foreign-currency-pegged stablecoins to hold at least $11.16 million in paid-up capital. That's the price of entry for anyone wanting to issue dollar-style tokens inside Africa's biggest crypto market. The framework covers virtual assets used for payments, settlement and foreign exchange.

The rules sort tokens into classes. Foreign-currency stablecoins land in Class 2, the tier that carries the $11.16 million floor. Naira-pegged Class 1 tokens and other non-security virtual-asset service providers get their own separate capital requirements, so not every issuer faces the same bar.

Two hard lines stand out. Algorithmic stablecoins are banned outright, and any platform matching peer-to-peer trades needs specific CBN approval to operate. Before a regulated token is released or credited, the platform must confirm the name on the user's naira payment account matches their BVN.

There's also no double-dipping. Companies already licensed by Nigeria's Securities and Exchange Commission can't count the same capital again toward the CBN's requirements. The split keeps securities under the SEC's watch, while the CBN governs non-security virtual assets tied to payments, settlement and currency exchange.

Nigeria has spent years wrestling with crypto — from a bank ban on crypto transactions in 2021 to a sweeping licensing push more recently. This framework draws a clear fence between who regulates what, and prices out the small players. For issuers eyeing the naira-to-dollar corridor, the ante just got real.