The Central Bank of Nigeria (CBN) has issued "Regulations for the Operations of Non-Security Virtual Assets in Nigeria", which took effect on 5 November 2026. They bring stablecoins used for payments, transfers, remittances, foreign exchange and settlement under CBN licensing, ban algorithmic stablecoins, and give firms already operating 180 days to apply.

What happened

According to The Block and crypto.news, both published on 6 November, the rules create separate licences for naira-referenced stablecoins (Class 1) and foreign-currency-referenced stablecoins (Class 2). Each token needs its own written approval before issue, covering its reference currency, reserves, name, ticker and the blockchains it runs on.

Foreign-currency stablecoins, such as dollar tokens, may be offered to people in Nigeria only through a Nigerian-incorporated company holding a Foreign Currency Issuer Licence; a licence from another country is not enough on its own. The rules apply to activity that reaches Nigerian users or affects Nigeria's payments, financial sector or exchange rate, even if the firm has no office there.

Algorithmic stablecoins, which hold their value mainly through market mechanisms rather than reserve assets, are banned. crypto.news also reports bans on stablecoins backed mainly by other crypto and on tokens without an enforceable right to redeem at face value.

Firms must verify customers, screen for sanctions, monitor transactions and follow the "Travel Rule", which passes sender and receiver details along with transfers, across custodial wallets, peer-to-peer services and remittance channels. The CBN covers payment uses; Nigeria's Securities and Exchange Commission keeps investment and capital-market activity, so a firm doing both needs both approvals.

crypto.news reports further figures from the document: minimum paid-up capital of ₦15 billion for Class 2 issuers, ₦10 billion for Class 1 issuers and ₦1 billion for other regulated providers; one-to-one reserves plus a buffer of at least 2%, checked daily; and fines starting at ₦100 million for unlicensed activity. We could not open the CBN's own PDF today, so treat these numbers as reported, not confirmed. The regulation itself is linked from both articles.

Why it matters

The new rules do not ban using stablecoins; they decide which companies may issue them and offer payment services with them. For a business that accepts USDT or USDC from Nigerian customers, the practical questions are whether the wallets, exchanges and payment providers it relies on will apply for a licence within the 180 days, and whether some foreign providers will pause service in Nigeria while they do.

Expect more identity checks: the Travel Rule means providers may ask for sender and recipient details on larger transfers.

What to watch

  • Which exchanges and issuers register with the CBN in the first 30 days and apply within 180.
  • Whether dollar-token issuers set up Nigerian entities or restrict access.
  • Guidance from the CBN on how merchants and payment gateways are treated.

How this relates to CryptoMerchant

CryptoMerchant, built by Quantumines, lets businesses accept crypto payments with invoices, payment links, hosted checkout and an API. Merchants serving Nigerian customers should read the regulation and take local advice on their own position; this brief is a summary, not legal advice.

Sources: The Block, 6 Nov 2026; crypto.news, 6 Nov 2026; both read on 7 Nov 2026. Related: Stripe stablecoin payouts to wallets and how to accept USDT payments without code.