Nigeria tells dollar-stablecoin issuers: go local or lose retail access

Nigeria’s central bank now requires dollar-pegged stablecoins offered to retail customers to be issued by locally incorporated, licensed entities and receive token approval. The rules took effect November 5, 2026, with a conditional 180-day application transition for existing operators. Continued access for foreign-currency stablecoin arrangements during assessment requires express permission from the Central Bank of Nigeria (CBN).The CBN regulations classify foreign-currency stablecoins as Class 2. Section 6.5 requires a Nigerian-incorporated entity holding a Foreign Currency Issuer License (Class 2), alongside approval of the token itself.A foreign license, regulatory status or agreement with a Nigerian intermediary cannot substitute for those approvals. The rules reach regulated activities directed at people in Nigeria even when the provider has no physical presence there.Issuers and service providers face distinct approval requirements. Non-issuance service licenses or authorizations do not permit stablecoin issuance, while issuer applicants must establish a staffed Nigerian office and effective local management before final licensing, including a resident chief compliance offi...