Local’s access to global crypto platforms could end under Nigeria’s proposed capital floor

Nigeria’s Securities and Exchange Commission (SEC) has released a draft regulatory framework that would bring crypto‑related businesses under its licensing regime when they operate in the country, serve Nigerian residents, or target Nigerian investors through digital channels.

Scope of the proposal

The draft applies to any digital‑asset service provider that has a presence in Nigeria, offers services to Nigerian residents, or otherwise targets the Nigerian market, regardless of where the entity is incorporated. Affected entities would need to register with the SEC and obtain approval or authorization.

Local presence requirements

Applicants would generally be required to incorporate in Nigeria, maintain a registered office, and appoint a resident chief executive or equivalent officer. The SEC may allow foreign entities to register or obtain authorization if specific conditions are met.

Capital and insurance thresholds

Different license classes carry distinct capital minima:

• Digital Asset Exchanges and Digital Asset Custodians: ₦2 billion minimum capital, plus a ₦30 million registration fee.
• Digital Asset Platforms, Offering Platforms, and Real‑World Asset Tokenisation Platforms: ₦500 million minimum capital, same fee.
• Virtual Asset Service Providers (VASP): ₦200 million minimum capital and a ₦15 million registration fee.

All categories must post a fidelity insurance bond covering at least 25 % of the paid‑up capital. Custodians must also meet a storage test, keeping at least 80 % of client assets in cold storage unless the SEC specifies otherwise.

Stablecoin reserve requirements

Stablecoin issuers targeting the Nigerian market would need to maintain reserves according to the token’s backing:

• Naira‑backed and commodity‑backed tokens: 100 % backing.
• Foreign‑currency‑backed tokens: 120 % backing.
• Crypto‑backed stablecoins: minimum 150 % backing, with a possible range of 150 %–200 % based on volatility, liquidity, concentration, and collateral quality.

Potential impact

If adopted, offshore exchanges and custodians serving Nigerian users would need to establish a local compliance structure or cease operations to Nigerian residents. Stablecoin issuers would face higher balance‑sheet requirements tied to the assets supporting their tokens.