Nigeria splits crypto oversight, adds ₦1 billion capital hurdle

By Amara Osei

Under new Central Bank of Nigeria (CBN) regulations released Thursday evening, any cryptocurrency company with a Securities and Exchange Commission (SEC) licence must obtain separate CBN approval and maintain at least ₦1 billion ($744,000) in additional capital to offer specified stablecoin services.

The CBN regulations cover four activities:

• stablecoin payment instruments;
• transfers;
• foreign exchange (FX) conversion; and
• settlement.

Under the same framework, the SEC retains authority over crypto trading, investments and digital assets classified as securities.

What does the split change?

Under the CBN rules, an SEC licence that permits a company to trade or hold cryptocurrencies does not automatically authorize it to use those assets to process payments or remittances. The company must apply to the CBN for additional authorization specifying the activities it can undertake.

The CBN said: “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].”

Under the framework, a company operating across both trading and payments must secure authorization from each regulator. The rules prohibit firms from counting the same capital toward their respective CBN and SEC requirements, raising compliance costs.

The CBN and SEC framework draws a clearer regulatory boundary after years of overlapping mandates. It comes nearly four months after Nigeria’s President Bola Tinubu established a Virtual Asset Council to coordinate oversight of the country’s cryptocurrency industry.

Who is operating under the rules?

The SEC has not yet issued a full operating licence to any cryptocurrency company. Its Accelerated Regulatory Incubation Programme, or ARIP, includes 14 companies operating under approvals in principle while they work toward full registration.

The ARIP cohort includes crypto exchanges Busha and Quidax and digital investment platform GetEquity, according to the SEC.

What capital must firms hold?

The SEC raised the minimum capital requirement for digital asset exchanges from ₦500 million ($372,000) to ₦2 billion ($1.5 million). New applicants must meet the higher threshold, while existing operators have until June 30, 2027, to comply.

The CBN’s ₦1 billion ($744,000) requirement applies to the additional services digital asset firms may provide, even where a company already meets the SEC minimum. The central bank may 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. The rules bar them from counting the same capital toward both requirements.

Which services remain outside dual approval?

Not every cryptocurrency transaction requires dual approval under the framework. Wallets and custody services used solely for trading, brokerage or investment purposes remain under SEC jurisdiction.

The CBN will regulate custody arrangements involving stablecoins held or transferred for payment purposes. Under the framework, some trading wallets remain outside dual approval while payment-focused stablecoin custody falls under CBN oversight.

The separation could affect crypto exchanges and fintechs that combine digital asset trading with cross-border payments, merchant acceptance or stablecoin settlement. An SEC-authorized company facilitating cryptocurrency trading would still need CBN approval to process stablecoin-powered cross-border or remittance payments.

How will the regulators coordinate?

The regulations establish a cooperation pathway for both regulators, including:

• information sharing;
• joint examinations; and
• coordinated licensing assessments.

The CBN may rely on the SEC’s existing checks of a company’s governance, management and anti-money laundering controls when reviewing applications for additional authorization, the regulations said.

The arrangement gives crypto firms a clearer distinction between trading and payments, according to the framework. It also adds regulatory and financial obligations to companies whose services extend across both activities.

The rules could shape how Nigerian exchanges and fintechs develop stablecoin products as digital assets play an emerging role in cross-border settlements, merchant payments and access to FX liquidity.

The next fixed test arrives June 30, 2027, when existing SEC-regulated exchanges must meet the ₦2 billion ($1.5 million) floor; one adding payment services must hold at least ₦3 billion ($2.23 million) without counting the same capital toward both.