Nigeria tightens dollar-backed stablecoin issuance rules, requiring a local presence and capital and reserve tests

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The Central Bank of Nigeria has issued rules for non-security virtual assets, requiring foreign stablecoin issuers targeting Nigerian users to establish a local presence and submit to licensing, capital and reserve oversight. The CBN reportedly set a capital requirement of 15 billion naira for foreign stablecoin issuers, while an SEC draft requires reserves for foreign-currency-backed stablecoins to reach at least 120% and requires foreign companies to designate a Nigerian representative. Meanwhile, the naira stablecoin cNGN is still seeking users, and the Central Bank of Nigeria has reportedly launched stablecoin sandbox testing.