CBN, SEC Draw Clearer Regulatory Lines for Nigeria’s Crypto Industry

Nigeria’s cryptocurrency industry is facing a tougher regulatory environment as the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC) establish clearer boundaries for supervising digital asset businesses.

Under new regulations issued by the CBN on November 5, 2026, cryptocurrency companies offering payment, settlement, remittance and custody services involving non-security virtual assets must obtain the central bank’s approval, even if they already hold licences from the SEC.

The regulations introduce an additional minimum paid-up capital requirement of ₦1 billion ($744,000) for relevant virtual asset service providers. Companies already licensed by the SEC cannot use the same capital to satisfy both regulators’ requirements.

The framework also clarifies the division of responsibilities between the two institutions. While the CBN will supervise non-security virtual assets and related financial services, the SEC retains oversight of digital assets classified as securities, investment contracts and other capital market products.

The new rules extend to cryptocurrency exchanges, wallet providers, custodians and stablecoin-related businesses operating in or targeting Nigeria.

Stablecoin issuers face higher capital thresholds. Issuers of naira-backed stablecoins must maintain at least ₦10 billion in paid-up capital, while foreign-currency stablecoin issuers face a ₦15 billion minimum and must operate through Nigerian-incorporated entities.

Existing operators have 180 days to submit complete licence applications, following an initial registration requirement within 30 days and supervisory reporting within 60 days.

The framework forms part of the Federal Government’s broader effort to coordinate virtual asset regulation, strengthen consumer protection and address financial stability, money laundering and foreign exchange risks.

For industry operators, the new requirements could increase compliance costs and reshape market participation. However, clearer regulatory responsibilities may also improve investor confidence and provide a more structured environment for legitimate cryptocurrency businesses to operate in Nigeria.