Nigeria: Mandatory License for Stablecoins, Algorithmic Models Banned

Licensed stablecoins in Nigeria. The Central Bank of Nigeria (CBN) imposes a new framework on stablecoin issuers and providers using digital assets for payments. Effective from November 5, 2026, the regulation also applies to foreign companies targeting Nigerian users, even without a physical presence in the country.

Existing operators have 180 days to apply for a license. However, their continued operation during this period depends on several immediate obligations.

Key Points

• Two categories of licenses distinguish naira-backed stablecoins from those referenced to a foreign currency.
• Foreign currency stablecoins must go through an issuer established in Nigeria and locally licensed.
• The CBN prohibits algorithmic stablecoins and those primarily backed by other crypto assets.
• Existing players must register within 30 days and submit their complete application within 180 days.

Foreign Stablecoins Subject to Nigerian Licensing

In its official regulation, the CBN distinguishes naira-referenced stablecoins, Class 1, from those backed by a foreign currency, Class 2. For this second category, it requires a company established in Nigeria and holding a Foreign Currency Issuer License.

A license obtained abroad or a simple partnership with a Nigerian intermediary is not sufficient. Additionally, each token must receive a distinct written authorization, covering its reference currency, reserves, name, and the blockchains used.

The framework goes beyond mere issuance. It also regulates distribution, exchanges, custody, transfers, and payment services under the central bank's mandate. A foreign company falls under its scope when it directs these activities towards Nigerian users.

Providers must also identify their customers, control sanctions, and monitor transactions. The Travel Rule requires them, under applicable conditions, to transmit information about the sender and the beneficiary of transfers.

![The Central Bank of Nigeria (CBN) imposes a new framework on stablecoin issuers and providers using digital assets for payments. Effective from November 5, 2026, the regulation also applies to foreign companies targeting Nigerian users, even without a physical presence in the country.

Existing operators have 180 days to apply for a license. However, their continued operation during this period depends on several immediate obligations.](https://public.chaincatcher.com/upload/news/202611/b9845f6f6474468a818a7837f6ccfe22.png) ![The Central Bank of Nigeria (CBN) imposes a new framework on stablecoin issuers and providers using digital assets for payments. Effective from November 5, 2026, the regulation also applies to foreign companies targeting Nigerian users, even without a physical presence in the country.

Existing operators have 180 days to apply for a license. However, their continued operation during this period depends on several immediate obligations.](https://journalducoin-com.exactdn.com/app/uploads/2026/11/Nigeria-banque-centrale-crypto-stablecoin.png?strip=all&quality=90&webp=90) Nigeria aims to maintain control over stablecoins in the country -- Source: Compte X JDC

Bans and Conditional Transition

The CBN prohibits stablecoins whose stability relies primarily on algorithmic adjustments of supply or demand rather than on eligible reserves. It also excludes tokens referenced to a traditional currency but primarily backed by other crypto assets.

Another requirement: holders must have a legally enforceable right of redemption at the reference value. Presenting a token as stable is therefore not sufficient to authorize its marketing.

Moreover, the 180-day period does not constitute a general exemption. To continue their activities at their existing scale, operators must register with the CBN within 30 days, immediately comply with anti-money laundering obligations, and begin their prudential reporting within 60 days, unless a closer deadline applies.

Finally, the text maintains the Nigerian SEC's competencies over financial securities and capital markets. A company active in both areas must obtain the corresponding authorizations.

The framework thus opens a path for licensing stablecoins while strengthening the control over their distribution. For foreign players, access to the Nigerian market now relies on a local legal presence, token approval, and supervision of their activities.

This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.