Nigeria’s central bank has rolled out a new licensing framework for stablecoin issuers and other virtual asset service providers that do not fall under securities regulation. The rules took effect on Nov. 5, 2026, and create distinct approval tracks for naira-linked tokens and those referenced to foreign currencies.
The regime reaches beyond firms physically based in the country. According to the new framework, it applies to activities carried out in Nigeria or those that affect the country’s payments system, financial sector, or foreign exchange market, including services offered by offshore operators.
Separate approvals for each token
Under the new rules, stablecoin issuers must secure a licence in the relevant category and obtain written approval for every token before it can be launched. The central bank requires issuers to submit details including a token’s classification, reference currency, reserve arrangements, name, ticker, and the networks on which it will operate.
The framework distinguishes between naira-referenced stablecoins and foreign-currency-referenced stablecoins, meaning an issuer cannot rely on a single blanket authorization across products. Each token needs its own approval, alongside the appropriate underlying licence.
Foreign issuers brought into local framework
The regulations also set conditions for offshore operators that serve Nigerian users. Foreign-currency stablecoins may only be offered to Nigerians as Class 2 tokens issued through a Nigerian-incorporated entity that holds a Foreign Currency Issuer Licence.
That provision means foreign issuers are not exempt simply because they operate from outside the country. If their activities touch Nigeria’s payments, remittance, financial, or foreign exchange systems, they fall within the central bank’s scope.
AML duties expanded across crypto services
The central bank’s framework pairs licensing with compliance obligations tied to anti-money laundering and counter-terrorist financing rules. Covered firms must carry out customer due diligence, sanctions screening, transaction monitoring, and comply with Travel Rule requirements.
Those controls are intended to apply across several service types, including custodial wallets, peer-to-peer services, and remittance channels. The rules therefore address not only issuance but the broader handling and movement of virtual assets used in payment-related activity.
Algorithmic stablecoins banned and transition begins
The regulations explicitly prohibit tokens that depend primarily on market dynamics instead of eligible reserve assets. In practice, that bars algorithmic stablecoins from the Nigerian framework.
The central bank said it has authority over stablecoins and other virtual assets used for payments, transfers, remittances, foreign exchange, and settlement. The Securities and Exchange Commission continues to oversee securities and capital-market activity, so companies whose businesses span both areas will need approvals from both regulators.
Existing operators have been given 180 days from the Nov. 5 effective date to apply for the relevant licence or authorization, subject to transitional requirements. That transition period is the next confirmed milestone for firms already serving the Nigerian market.
Source: www.theblock.co