Nigeria’s central bank issued a framework on November 5 covering stablecoins, payment services, custody, transfers and remittances involving non-security virtual assets. It distinguishes between naira-backed stablecoins, subject to a minimum paid-up capital requirement of 10 billion naira, and foreign-currency-backed tokens, for which the threshold is 15 billion naira. Each token requires approval and disclosures covering reserves, redemption, supported networks, governance and risks. Algorithmic mechanisms relying primarily on market mechanisms are restricted, while international companies targeting Nigerian residents may need to incorporate locally and obtain authorisation. The framework also covers anti-money-laundering checks, sanctions screening, transaction monitoring, safeguarding and customer disclosures.
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