CBN mandates ₦15B capital for foreign stablecoin issuers, bans algorithmic tokens

CBN dropped new stablecoin rules Thursday (Nov 5) requiring foreign issuers like USDT and USDC to maintain ₦15 billion ($11.16M) paid-up capital and incorporate locally to operate in Nigeria. Naira-backed stablecoins need ₦10 billion ($7.44M). The framework bans algorithmic stablecoins outright and mandates monthly reserve attestations, customer redemption arrangements, and regular supervisory reporting.

Foreign regulatory approvals won't exempt companies—Tether and Circle must meet Nigeria's requirements directly. Existing operators get 180 days to apply for a licence once the effective date is announced (CBN hasn't specified when the clock starts), but must register within 30 days and submit reports within 60 days. Non-compliance means cessation until licensed.

This follows August's regulatory sandbox launch with a dedicated stablecoin track. Tether was hiring a Nigeria Expansion Manager that month; Circle just appointed former Yellow Card executive Gillian Darko as VP Head of Africa. Stablecoins have become critical infrastructure for cross-border payments, FX access, and dollar liquidity for fintechs pre-funding international settlements.

The rules bring clarity but raise questions: Will ₦15B capital requirement consolidate the market around deep-pocketed players? Can local incorporation be achieved within 180 days? And does banning algorithmic stablecoins close the door on innovation or protect users from another TerraUSD-style collapse?

If you run a fintech relying on stablecoin rails, have you mapped your compliance path for the 180-day window?

SOURCE: https://techcabal.com/2026/11/06/cbn-new-rules-foreign-stablecoin-issuers/