By our Reporter
THE Central Bank of Nigeria (CBN) will publish a public register of licensed stablecoin issuers and other authorised virtual asset operators as part of new measures to strengthen oversight of the country growing digital assets market.
Under its operational regulations for non-security virtual assets, the apex bank said the register would list the names of licensed operators, their approved activities, the regulated tokens covered by their licences, and any applicable conditions, including suspension or revocation.
The framework covers the issuance, distribution, conversion, custody, transfer, redemption and settlement of non-security virtual assets, including stablecoins and Deposit Money Tokens (DMTs). It distinguishes three main token categories.
Class 1 covers Naira stablecoins. Applicants face a ₦10 million application fee and a minimum paid-up capital of ₦10 billion. These tokens must be fully backed by eligible Naira-denominated reserves and may be used for payments, settlement and treasury management. Holders will not earn interest or yield simply by holding the tokens.
Class 2 covers foreign-currency stablecoins, such as USDT and USDC. The application fee remains ₦10 million, but the minimum paid-up capital rises to ₦15 billion. Reserves must be held in foreign currency at a Nigerian bank. These tokens are permitted for cross-border payments, remittances and international trade settlement, though domestic Naira obligations and conversions remain subject to foreign-exchange controls.
Deposit Money Tokens, or DMTs, may be issued only by CBN-licensed commercial banks with prior approval. Each token must represent an actual deposit liability of the issuing bank, which remains fully liable for the underlying deposit. Interbank transfers will use CBN-approved settlement infrastructure, potentially including the real-time gross settlement system. These tokens are subject to existing banking capital requirements.
A separate Virtual Asset Service Provider (VASP) authorisation, carrying a minimum paid-up capital of ₦1 billion, covers a wide range of activities. These include custodial and non-custodial wallet services, crypto custody and private-key administration, fiat-to-crypto and crypto-to-crypto exchanges, Naira and foreign-currency on- and off-ramps, domestic and cross-border transfers, token distribution, payment gateways, merchant acceptance, stored-value facilities and certain platform-facilitated peer-to-peer services.
Foreign stablecoin issuers, including Tether (USDT) and Circle (USDC), must establish locally incorporated and licensed entities before offering, distributing or making their tokens available to Nigerian users. Foreign regulatory approvals will not exempt them from Nigeria’s licensing, capital, reserve and operational rules.
An Approval-in-Principle will not authorise operations. The CBN will grant a final issuer licence only after applicants fulfil AIP conditions, complete Nigerian incorporation and pass operational-readiness assessments that may include inspections, system reviews, testing and validation. Operations may begin only after the final licence, relevant token approvals and other pre-commencement conditions are secured.
Licensed operators must display their regulatory status and unique licence reference numbers on websites and relevant documents. They must also clarify that the CBN does not guarantee the value of any token or the obligations of its issuer.
Stablecoin issuers are required to maintain adequate reserves, establish effective redemption arrangements and submit regular reports, including monthly reserve attestations. Algorithmic stablecoins, which rely primarily on mathematical models rather than reserve backing, are prohibited. The CBN retains the power to adjust capital and liquidity requirements, impose additional safeguards and restrict activities, token circulation or customer.
bases according to risk assessments.
Existing operators have 180 days from the effective date of the regulations to apply for the relevant licences. They must register within 30 days and begin submitting supervisory reports within 60 days. Those that fail to comply must cease operations until authorised; continued interim operations require explicit regulatory approval.
The regulations also reinforce anti-money-laundering and counter-terrorism-financing obligations, including customer due diligence and Travel Rule compliance.
The move comes amid rising use of stablecoins for cross-border payments and international settlements, and follows recent expansion efforts by major global issuers in Nigeria. The CBN said the framework aims to strengthen consumer protection, preserve financial stability and provide clearer operating rules for digital-asset companies while improving oversight of virtual-asset activities.
