Nigerian central bank sets 15 billion naira capital requirement for issuers
By the AFREEQUE newsroom, based on Punch
Nigeria’s central bank requires issuers to hold minimum capital of 15 billion naira for stablecoins linked to foreign currencies, notably the US dollar. New rules also set thresholds of 10 billion naira for naira-linked tokens and 1 billion for other providers, Punch reports.
The Central Bank of Nigeria (CBN) also sets the minimum paid-up capital for issuers of stablecoins backed by the Nigerian currency, classified as category 1, at 10 billion naira. Other virtual asset service providers not classified as securities must hold at least 1 billion naira, according to new rules published by the CBN and reported by Punch.
The CBN may impose higher capital requirements based in particular on transaction volumes, the operator’s importance in the market, its repayment obligations, technological risks and its exposure to the financial system. Regulatory capital must also be separate from issuers’ reserves, deposits with the CBN, client funds and operational liquidity, according to the rules signed by Musa Jimoh, director of the CBN’s Payment System Policy Department.
