Nigeria’s Crypto Rulebook: 180 Days to Get Licensed, No Algorithmic Escape Hatch

Nigeria’s central bank has introduced new licensing and reserve requirements for cryptocurrency companies, tightening oversight of stablecoins, exchanges, custodians and digital asset payment services in one of Africa’s largest crypto markets. The Central Bank of Nigeria (CBN) issued the Regulations for the Operations of Non-Security Virtual Assets on Thursday, establishing rules for stablecoin issuers, crypto payment providers and other covered service providers.

The regulations took effect immediately, while existing operators have 180 days to apply for licenses or authorizations. The CBN said the framework aims to support responsible innovation while protecting consumers and financial stability. The move follows President Bola Tinubu’s July executive order, which sought to coordinate crypto oversight among Nigerian authorities without changing their existing powers.

Stablecoin issuers must fully back their tokens with reserve assets and maintain an additional buffer equal to at least 2% of their value. At least 40% of reserves must consist of cash or qualifying highly liquid assets. Minimum paid-up capital is 10 billion naira ($7.4 million) for naira-backed issuers and 15 billion naira ($11.1 million) for foreign currency-backed stablecoin issuers.

Companies providing payment-related crypto services, including exchange and custody services, must maintain minimum paid-up capital of 1 billion naira ($742,000). The regulations also prohibit stablecoins that rely primarily on algorithms rather than eligible reserves to maintain their value, along with tokens that lack enforceable redemption rights.

Nigeria has previously limited banking access for exchanges and sought to restrict peer-to-peer trading using local currency. The country gained international attention through its dispute with Binance, the world’s largest cryptocurrency exchange by trading volume. Binance discontinued its Nigerian naira services in March 2024 amid government scrutiny and allegations of currency manipulation. Nigerian authorities detained Binance executive Tigran Gambaryan for nearly eight months before dropping money laundering charges against him in October 2024. More recently, Nigeria’s revenue agency introduced crypto tax collection rules for digital asset platforms and peer-to-peer marketplaces in August 2026.