Cryptocurrency companies licenced by Nigeria’s Securities and Exchange Commission (SEC) will need separate central bank approval and at least ₦1 billion ($744,000) in additional capital to offer certain stablecoin payment, remittance, and custody services under new regulations.
The Central Bank of Nigeria (CBN) will oversee stablecoins used as payment instruments, transfers, foreign exchange (FX) conversion, and settlement. The SEC retains authority over crypto trading, investments, and digital assets classified as securities, according to new regulations released Thursday evening.
The framework draws a clearer regulatory boundary for crypto businesses that combine trading with payments, requiring companies operating across both markets to secure authorisation from each regulator. It also raises compliance costs, prohibiting firms from counting the same capital toward their CBN and SEC requirements.
The division follows years of overlapping regulatory mandates and comes nearly four months after Nigeria’s President Bola Tinubu established a Virtual Asset Council to coordinate oversight of Nigeria’s cryptocurrency industry.
Under the rules, an SEC licence that permits a company to trade or hold cryptocurrencies will not automatically authorise it to use those assets to process payments or remittances. Companies seeking to offer such services must apply to the CBN for an additional authorisation specifying the activities they can undertake.
“A licence, registration or approval granted by the SEC shall not, by itself, authorise the holder to provide services [covered by the CBN’s framework],” the regulator said.
One business, two regulators
The separation of oversight could affect crypto exchanges and fintechs that combine digital asset trading with cross-border payments, merchant acceptance or stablecoin settlement.
For example, a company authorised by the SEC to facilitate cryptocurrency trading would need separate CBN approval to process stablecoin-powered cross-border or remittance payments.
The SEC has not yet issued a full operating licence to any cryptocurrency company, with 14 companies, including crypto exchanges Busha and Quidax and digital investment platforms such as GetEquity, currently participating in its Accelerated Regulatory Incubation Programme (ARIP). The companies are operating under approvals in principle as they work toward full registration.
The SEC has also raised the minimum capital requirement for digital asset exchanges from ₦500 million ($372,000) to ₦2 billion ($1.5 million). The rules also require new applicants to meet the higher threshold; existing operators have until June 30, 2027, to comply.
The CBN’s ₦1 billion ($744,000) capital requirement will apply to the additional services digital asset firms may provide, even where a company already meets the SEC’s minimum capital threshold. The central bank may also impose higher capital or liquidity requirements based on the scale and risks of an operator’s business.
SEC-regulated crypto exchanges seeking to offer digital asset-based payment services may need at least ₦3 billion ($2.23 million) in regulatory capital for both functions. Companies cannot count the same capital toward both requirements.
However, not every cryptocurrency transaction will require dual approval. Wallets and custody services used solely for trading, brokerage, or investment purposes will remain under the SEC. The CBN will regulate custody arrangements involving stablecoins held or transferred for payment purposes.
The regulations also establish a pathway for both regulators to cooperate, including information sharing, joint examinations, and coordinated licencing assessments. The CBN may rely on the SEC’s existing checks on a company’s governance, management, and anti-money-laundering (AML) controls when reviewing applications for additional authorisation.
The new arrangement gives crypto firms a clearer distinction between trading and payments, but also places additional regulatory and financial obligations on companies whose services extend across both activities.
It could shape how Nigerian exchanges and fintechs develop stablecoin products, particularly as digital assets play an emerging role in cross-border settlements, merchant payments, and access to FX liquidity.