Nigeria’s central bank has issued regulations requiring stablecoin issuers and other virtual asset providers to hold local licences, and has banned algorithmic stablecoins outright, The Block reports. The rules took effect on 5 November.
Issuers need written approval for each token. The application covers its classification, reference currency, reserve arrangements, name, ticker and supported blockchains. There are separate licence categories for naira-referenced and foreign-currency-referenced coins.
Foreign stablecoins can reach Nigerians only as “Class 2 tokens”, issued through a Nigerian-incorporated entity that holds a Foreign Currency Issuer Licence. Algorithmic coins, defined as those relying mainly on market dynamics rather than eligible reserve assets, are prohibited.
The reach is wide. The rules cover activity in Nigeria, activity aimed at Nigerian users and activity affecting the financial system, even without a physical presence. Providers must run customer due diligence, sanctions screening, transaction monitoring and Travel Rule checks across custodial wallets, peer-to-peer services and remittance channels.
The central bank handles payments, transfers, remittances and settlement, while the SEC keeps securities activity. Firms that straddle both need approval from each.
Existing operators, including exchanges and wallet providers, have 180 days to apply, subject to transitional requirements. That implies a deadline around early May 2027, though the report does not give a date.
What the report does not say is what a licence costs, how much capital issuers must hold, or what happens to offshore dollar stablecoins that Nigerians already use in volume while the licensing queue forms.
