Nigeria Sets $10.5M Bar for Dollar Stablecoin Issuers

- New CBN and SEC rules require ₦15 billion capital and local presence for stablecoin issuers - Nigeria’s cNGN adoption lags as users prefer USDT and USDC despite recent crackdown On November 6, 2026, Business Insider Africa reported that Nigeria’s Central Bank (CBN) and Securities and Exchange Commission (SEC) jointly released updated stablecoin regulations. The move followed an executive order from President Bola Tinubu in July 2026, and the new framework mandates strict capital, reserve, licensing, and local presence requirements for both naira-backed and foreign currency-backed stablecoin issuers. Regulators aim to control capital outflows, protect consumers, and bring digital assets under formal oversight. According to Business Insider Africa on November 6, 2026, foreign stablecoin issuers must establish a local presence in Nigeria and appoint a Nigerian representative. The outlet reported that they must also meet a minimum capital requirement of ₦15 billion (approximately $10.5 million) as of that date. In addition, The Fintech Times reported that the SEC enforces further capital and reserve obligations, including an overcollateralization requirement. Foreign currency-backed stablecoins must hold at least 120% reserves, naira-backed tokens require 100%, and crypto-backed stablecoins need 150%. Furthermore, any virtual asset service provider that markets to Nigerian users must obtain a local license, regardless of whether it maintains a local office. Business Insider Africa also reported that the regulations extend oversight to peer-to-peer (P2P) crypto trading, while the Nigeria Revenue Service integrates tax and reporting compliance for all virtual asset transactions. Lawmakers intend these measures to strengthen trust in the digital asset sector and prevent illicit activity; however, critics note that the high financial thresholds may disadvantage local startups in favor of established global players. Meanwhile, despite the launch of Nigeria’s central bank naira-backed stablecoin (cNGN) in early 2024, local adoption remains limited. The majority of Nigerian users continue to favor dollar-pegged stablecoins such as Tether (USDT) and USD Coin (USDC). This dollar preference persists even after recent restrictions on direct crypto-fiat conversion and enforcement actions against Binance, and users’ choices reflect ongoing naira devaluation and skepticism toward government-issued digital tokens. As of 15:10 UTC on November 6, 2026, market survey data shows that Tether USDt (USDT) is trading at $0.999, with a 0.045% decrease in 24-hour trading volume, while Ethena USDe (USDe) is trading at $0.999, with a 0.019% decrease in 24-hour volume.