{
  "id": 18454658,
  "title": "Nigeria sets $11.16 million capital requirement for foreign stablecoin issuers",
  "url": "https://urgent.news/2026/11/06/nigeria-sets-11-16-million-capital-requirement-for-foreign-stablecoin",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-11-06T06:40:01.000Z",
  "source": {
    "name": "TechCabal",
    "slug": "techcabal",
    "url": "https://techcabal.com/2026/11/06/cbn-new-rules-foreign-stablecoin-issuers/"
  },
  "original_language": "en",
  "account": "Nigeria's Central Bank has announced new regulations requiring foreign-currency stablecoin issuers, such as those behind dollar-pegged tokens like USDT and USDC, to maintain a minimum paid-up capital of ₦15 billion ($11.16 million) to operate in the country. The rules, released on Thursday, also mandate that these foreign issuers establish licensed entities in Nigeria and adhere to local capital, reserve, and operational requirements, or risk losing market access. Additionally, naira-backed stablecoin issuers must maintain a ₦10 billion ($7.44 million) minimum capital. The new framework establishes a formal licensing system for stablecoins, digital tokens that aim to maintain a fixed value against fiat currencies like the US dollar or naira. These tokens are commonly used by businesses and individuals in Nigeria for cross-border money transfers, transactions, and accessing the US dollar. The regulations come as major stablecoin issuers like Tether and Circle seek to expand their presence in Nigeria. Tether recently hired an Expansion Manager for Nigeria, while Circle appointed Gillian Darko, a former strategy executive, as its Vice President and Head of Africa. The CBN's rules strictly prohibit algorithmic stablecoins, which rely on algorithms to adjust token supply and maintain value, as they pose higher risks and are harder to regulate. Under the new rules, foreign-currency stablecoin operators must obtain explicit regulatory permission to continue operating while their applications are reviewed. If they fail to submit the required documents within the specified period, they must cease operations until they obtain the necessary licence or authorization.",
  "summary": "Nigeria’s central bank has introduced new licencing rules requiring foreign-currency stablecoin issuers to maintain at least ₦15 billion ($11.16 million) in paid-up capital and establish local entities.",
  "key_points": [
    "Nigeria's Central Bank mandates $11.16M capital for foreign stablecoin issuers.",
    "Issuers must establish local entities and comply with capital, reserve rules.",
    "Naira-backed stablecoins need ₦10B minimum capital."
  ],
  "editors_take": "Mandating local entities and significant capital reserves forces international digital asset providers to formalize their presence or lose access to one of Africa's most active stablecoin markets.",
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}