Nigeria’s Central Bank has prohibited algorithmic stablecoins and introduced licensing rules for digital asset businesses operating in the country.

The framework covers stablecoin issuance, exchanges, custody, wallets, transfers, payment services and settlement infrastructure.

The rules require businesses conducting regulated virtual asset activities to obtain the appropriate Central Bank licence or authorisation.

The ban covers algorithmic stablecoins and tokens backed primarily by other virtual assets rather than eligible reserve assets.

Stablecoins must provide full reserve backing and enforceable redemption rights, while issuers face additional reserve and reporting requirements.

Existing operators must register within 30 days and…