Nigeria’s central bank sets ₦15B capital rule for stablecoins, bans algorithmic tokens - Crypto News

Nigeria's central bank has introduced a new regulatory framework for stablecoin issuers, requiring a minimum capital base of ₦15 billion while explicitly prohibiting algorithmic stablecoins. The rules draw a clear line between fiat-backed tokens, which must meet the capital threshold, and algorithmic models that rely on code rather than reserves to maintain their peg. The move signals that Nigerian authorities intend to bring naira-referenced digital assets into a supervised perimeter rather than leave them unregulated.

The capital requirement is significant in a market where stablecoins are widely used for remittances, dollar savings, and cross-border payments. A ₦15 billion threshold raises the barrier to entry, likely favouring well-capitalised institutions and potentially consolidating issuance among fewer players. The ban on algorithmic tokens reflects a broader regulatory caution toward designs that have failed in past market stress.

For observers, the key questions are how the central bank will license and supervise issuers, whether naira-backed stablecoins gain traction under the new regime, and how the rules interact with Nigeria's existing crypto exchange oversight. The framework may also serve as a template for other African regulators weighing similar controls.