The Central Bank of Nigeria (CBN) has introduced new capital and licensing requirements for stablecoin issuers and other virtual asset service providers, raising the financial and regulatory obligations for businesses operating in Nigeria’s digital asset market.

The requirements are contained in the bank’s Regulations for the Operations of Non-Security Virtual Assets in Nigeria, issued on November 5, 2026, to establish a regulatory framework for stablecoins, deposit money tokens and related virtual asset services.

Under the new framework, issuers of naira-backed stablecoins, classified as Class 1 operators, are required to maintain a minimum paid-up capital of ₦10 billion.

Companies issuing foreign currency-backed stablecoins, including dollar-pegged tokens, classified as Class 2 operators, must maintain at least ₦15 billion in paid-up capital.

The CBN also prescribed a minimum capital requirement of ₦1 billion for other non-security virtual asset service providers, including businesses involved in cryptocurrency exchanges, digital wallets, custody, transfers and related services.

The bank said the capital requirements must be maintained at entry and throughout the period of operation, adding that it may prescribe higher amounts depending on the risks and activities of individual operators.

The new rules also require stablecoin issuers to maintain reserve assets equivalent to the value of their outstanding tokens, alongside an additional two per cent buffer to protect against potential losses and operational liabilities.

For naira-backed stablecoins, issuers must also maintain at least 20 per cent of their reserve pool in a dedicated deposit account with the CBN.

The regulations further introduce requirements covering corporate governance, liquidity management, customer protection, cybersecurity, anti-money laundering and regulatory reporting.

Existing operators are required to register with the CBN within 30 days of the commencement of the regulations, begin submitting supervisory reports within 60 days and complete their licence applications within 180 calendar days.

The bank said existing operators may continue providing services during the transition period, subject to regulatory conditions and restrictions on expanding their activities.

Operators that fail to submit their applications within the stipulated period will be required to stop providing the regulated services until they obtain the necessary licence or authorisation.

The framework also distinguishes between virtual assets regulated by the CBN and those classified as securities, which remain under the regulatory oversight of the Securities and Exchange Commission (SEC).

The higher capital requirements could make it more difficult for smaller fintech startups to enter the stablecoin issuance market, particularly businesses that do not have access to substantial investor funding or institutional capital.

For startups planning to issue naira-backed stablecoins, the ₦10 billion minimum capital requirement creates a significant financial threshold, while businesses seeking to issue foreign currency-backed stablecoins must meet the higher ₦15 billion requirement.

Smaller fintech companies that operate cryptocurrency exchanges, digital wallets, custody and transfer services are subject to the separate ₦1 billion capital requirement. This means businesses must identify the category of service they provide to determine the applicable licensing and capital obligations.

The regulations could also increase operating costs for affected businesses, as they will need to invest in compliance systems, cybersecurity, customer verification, transaction monitoring and reporting processes.

Another important consideration is that the capital requirements must be maintained separately from funds held as stablecoin reserves, customer assets and operational liquidity. Businesses cannot use the same funds to satisfy multiple regulatory obligations.

For existing operators, the transition period provides time to review their business structures, capital positions and licensing status before completing the required applications.

However, the requirements do not mean that every fintech business using stablecoins or offering digital payment services must maintain ₦10 billion or ₦15 billion in capital. The applicable threshold depends on whether the business issues stablecoins or provides other regulated virtual asset services.

The CBN said the new framework is intended to support responsible innovation while strengthening financial stability, consumer protection and oversight of virtual asset activities in Nigeria.

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The Federal Competition and Consumer Protection Commission (FCCPC) has directed food manufacturers whose vegetable oil and salt products failed to meet national fortification standards to comply with regulatory requirements, urging micro, small and medium-sized enterprises (MSMEs) to strengthen product registration and digital traceability.

The directive followed a two-month survey conducted by the commission in partnership with the Global Alliance for Improved Nutrition (GAIN), which found that some food products sampled from Nigerian markets and households contained inadequate levels of essential vitamins and minerals.

According to the FCCPC, an analysis of 200 samples, comprising 100 vegetable oil and 100 salt samples, showed that 12 per cent of the vegetable oil samples and two per cent of the salt samples were inadequately fortified.

The survey covered randomly selected markets and households across northern and southern Nigeria.

Food fortification involves adding essential vitamins and minerals, including iron, folic acid, vitamin A, zinc and iodine, to widely consumed food products during industrial processing to address micronutrient deficiencies.

Nigeria’s national food policy mandates manufacturers to fortify applicable food products to ensure they meet the required nutritional standards.

The commission also identified limited participation by manufacturers in the Digital Fortification Quality Traceability Plus (DFQT+) platform, developed by GAIN to improve the monitoring and tracking of fortified food products from production to consumption.

It disclosed that only six vegetable oil producers had registered on the platform, while just eight results belonging to three of the six companies were uploaded among the 100 vegetable oil samples analysed.

The FCCPC said it had issued directives compelling defaulting producers to comply with the requirements and encouraged manufacturers, particularly MSMEs, to embrace product registration and digital traceability systems.

Commenting on the findings, the Executive Vice Chairman and Chief Executive Officer of the FCCPC, Tunji Bello, said consumers should be able to trust the quality of products they purchase and the benefits those products are expected to provide.

He added that businesses have a responsibility to maintain appropriate quality standards and ensure their products meet applicable regulatory requirements.

The commission also disclosed that it had escalated the findings to the National Agency for Food and Drug Administration and Control (NAFDAC) for further action.

The directive places renewed attention on compliance among small-scale food manufacturers, particularly businesses involved in vegetable oil and salt production.

For MSMEs producing these products, meeting fortification requirements means ensuring that applicable products contain the prescribed levels of essential micronutrients and that production processes maintain the required standards.

Manufacturers will also need to pay attention to product registration and digital traceability, as the FCCPC is encouraging businesses to adopt systems that make it easier to monitor products across the supply chain.

For small businesses with limited financial and technical resources, meeting these requirements may require additional investment in production quality control, product testing, record-keeping and traceability processes.

Improved traceability could also help manufacturers identify quality concerns, monitor production processes and provide regulators with information needed to verify compliance.

The FCCPC said the adoption of digital traceability would improve transparency, help identify product quality issues and enable manufacturers and regulators to address problems across the supply chain.

The commission encouraged consumers to pay attention to fortified food products and ensure proper product handling and storage.

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Women entrepreneurs in Nigeria are set to benefit from a new funding and business development initiative backed by the African Development Bank (AfDB), which has committed $750,000 in grant support to strengthen women-owned and women-led businesses across the country.

The three-year intervention is being implemented through partnerships with three Nigerian organisations: the Lagos State Employment Trust Fund (LSETF), the Pan African Women Empowerment Network (PAWEN) and ImpactHER Foundation.

Under the arrangement, each organisation will receive $250,000 to deliver targeted support to women entrepreneurs.

For Lagos-based business owners, the development is particularly significant because LSETF will use its allocation to support 610 women-led businesses through business development services, financial literacy training, mentorship, business formalisation and improved access to markets and financing opportunities.

However, the funding should not be mistaken for a new $750,000 cash grant available for individual entrepreneurs to apply for directly. It is institutional grant funding intended to finance support programmes for selected businesses.

Here is what Nigerian women entrepreneurs need to know.

What Is the AfDB $750,000 Women Entrepreneurs Funding Initiative?

The funding is part of the African Development Bank’s Affirmative Finance Action for Women in Africa (AFAWA) initiative.

AFAWA is designed to address the challenges women entrepreneurs face when trying to access finance, develop their businesses and participate fully in economic activities.

Through its Women Entrepreneurship Enablers Project, the African Development Bank works with organisations that can provide women-owned businesses with the practical support, knowledge and networks required to grow.

The latest Nigerian partnerships are part of the project’s second cohort.

According to the AfDB, the three Nigerian organisations will each receive $250,000 in grant support, bringing the total commitment to $750,000.

The project will run for three years and focus on improving the capacity, competitiveness and sustainability of women-led enterprises.

How Will the $750,000 Funding Be Shared?

The funding will be distributed equally among three participating organisations.

The LSETF allocation is particularly relevant to entrepreneurs in Lagos State.

The organisation will use its $250,000 allocation to support 610 women-led businesses through a programme designed to strengthen their operations and improve their ability to access finance and business opportunities.

The AfDB has not announced that each of the 610 businesses will receive an equal cash payment. The funding is intended to support a package of business development interventions.

What Support Will Women-Owned Businesses Receive?

The programme is designed to go beyond simply providing money. Participating businesses are expected to receive different forms of support to help them become more competitive and financially sustainable.

These include:

1. Business Development Services

Women entrepreneurs will receive business development support to improve how they manage and operate their enterprises.

This may cover business planning, operational efficiency, financial management and strategies for business expansion.

2. Financial Literacy Training

One of the major challenges facing small businesses is the inability to manage finances effectively or present reliable financial information when seeking funding.

The programme will provide financial literacy support to help participating entrepreneurs improve their financial management and understand financing options.

3. Business Formalisation Support

Many small businesses operate without adequate business registration, financial records or formal operating structures.

The initiative will support women entrepreneurs in strengthening the formal structures of their businesses, improving their readiness to access institutional funding and other opportunities.

4. Mentorship and Business Advisory

Participating entrepreneurs are expected to benefit from mentorship and advisory support.

This will help business owners identify operational challenges, make better business decisions and develop strategies for sustainable growth.

5. Market Access and Financing Opportunities

The programme will also help women-led businesses improve their access to markets, business networks and potential financing opportunities.

This is important because access to finance alone does not guarantee business growth. Entrepreneurs also need customers, market connections and the capacity to manage expansion.

Who Can Benefit from the AfDB Women Entrepreneurs Initiative?

The programme is specifically designed to strengthen women-owned and women-led businesses.

The Lagos component, implemented through LSETF, is targeting 610 businesses.

However, the AfDB’s announcement does not provide a complete public eligibility checklist for the 610 Lagos beneficiaries.

It also does not specify the final selection criteria, minimum business turnover, required years of operation or whether businesses in particular sectors will receive priority.

Women entrepreneurs interested in the initiative should therefore watch for official information from LSETF rather than assume that meeting the general requirements for an LSETF loan automatically qualifies them for this separate programme.

The other two participating organisations, PAWEN and ImpactHER, will implement their own interventions under their respective $250,000 allocations.

Is the AfDB Offering Direct Cash Grants to Women Entrepreneurs?

This is an important question.

The $750,000 commitment is a grant to three implementing organisations, not a direct cash grant scheme in which individual women entrepreneurs can independently claim a share of the funding.

The LSETF allocation will support 610 women-led businesses through a combination of business development services, financial literacy, mentorship, formalisation support and improved access to markets and financing.

The AfDB announcement does not state that each beneficiary will receive a fixed cash amount.

Women entrepreneurs should therefore be cautious of anyone advertising guaranteed payments from this particular initiative or requesting money to secure a place.

How Can Women Entrepreneurs Apply?

As of the latest public announcement, the AfDB and LSETF have not published a dedicated application portal, application deadline or complete beneficiary selection procedure for the 610 businesses.

This means there is currently no confirmed public application process that MSME Africa can direct entrepreneurs to for this specific intervention.

Interested women business owners should monitor the official channels of the participating organisations for further announcements.

Lagos State Employment Trust Fund (LSETF)

Website: https://lsetf.ng/

Latest updates: https://lsetf.ng/latest-news

African Development Bank

Website: https://www.afdb.org/

ImpactHER Foundation

Website: https://impacther.org/

Pan African Women Empowerment Network (PAWEN)

Women entrepreneurs can also follow the organisation’s official announcements for details of its programme under the initiative.

Do not pay individuals or unofficial agents claiming they can guarantee selection or access to the AfDB funding.

Why Is This Funding Important for Women-Owned Businesses in Nigeria?

Women play a significant role in Nigeria’s small business economy, particularly in retail, agriculture, food processing, manufacturing, services and other entrepreneurial activities.

However, access to finance, business advisory services, market opportunities and formal business support remains a challenge for many women-owned enterprises.

The AfDB initiative recognises that supporting women entrepreneurs requires more than providing loans or grants.

Businesses also need the skills, systems, networks and financial management capacity to use available resources effectively.

The Lagos partnership is particularly noteworthy because LSETF already has an established MSME support structure in the state.

At the launch of the partnership, Lagos State officials highlighted that women account for close to 60 per cent of businesses in LSETF’s portfolio.

The new intervention is expected to build on existing enterprise development efforts and help participating women-led businesses improve their revenue, scalability and capacity to create jobs.

Frequently Asked Questions

1. How much has AfDB committed to support women-owned businesses in Nigeria?

The African Development Bank has committed $750,000 in grant support through three Nigerian institutional partnerships. Each organisation will receive $250,000.

2. How much will Lagos State receive?

The Lagos State Employment Trust Fund will receive $250,000 to support 610 women-led businesses in Lagos State.

3. Will the 610 women entrepreneurs receive cash grants?

The announcement does not confirm that the 610 businesses will receive direct cash payments. The funding is intended to provide business development services, financial literacy, mentorship, formalisation support and improved access to markets and financing.

4. Can women entrepreneurs outside Lagos benefit?

Yes, the overall $750,000 programme also includes PAWEN and ImpactHER, which are separate implementing partners. Their respective programmes are not restricted to the LSETF Lagos component.

5. Is the AfDB $750,000 grant application open?

No dedicated public application portal or deadline for the 610 Lagos businesses has been announced in the AfDB’s published announcement. Interested entrepreneurs should monitor LSETF and the other implementing organisations for official updates.

6. Is this the same as the LSETF ₦5 million MSME loan?

No. The AfDB-backed Women Entrepreneurship Enablers Project is a separate business development initiative. The LSETF MSME loan programme is a repayable financing facility, while the AfDB grant supports institutional delivery of enterprise development services.

Final Thoughts

The African Development Bank’s $750,000 commitment represents an important investment in women entrepreneurship in Nigeria.

For Lagos-based women entrepreneurs, the LSETF partnership provides an opportunity to access business development support, financial literacy training, mentorship and improved connections to markets and financing.

The real impact, however, will depend on how effectively the programme identifies participating businesses and translates the funding into measurable improvements in their performance, revenue and sustainability.

Women entrepreneurs should keep an eye on LSETF, PAWEN and ImpactHER for further announcements about beneficiary selection and programme participation.

MSME Africa will continue to monitor developments and provide updates as more information becomes available.

Official source: African Development Bank Group — https://www.afdb.org/en/news-and-events/press-releases/nigeria-african-development-bank-group-commits-97707

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The National Agricultural Development Fund (NADF) has partnered with Sahel Capital Fund Manager Ltd. to expand access to affordable financing for agribusinesses in Nigeria, particularly small and medium-sized enterprises (SMEs).

The partnership is expected to reduce borrowing costs, attract private investment into the agricultural sector and support businesses operating across agricultural value chains.

The two institutions signed a Memorandum of Understanding (MoU) in Abuja to explore financing opportunities and jointly address challenges affecting agricultural productivity and agribusiness development.

Speaking at the signing ceremony, the Managing Partner of Sahel Capital, Mr Mezuo Nwuneli, said many small and medium-sized agribusinesses currently access loans at interest rates of between 24 and 27 per cent, limiting their ability to expand operations and invest in growth.

He explained that the collaboration would allow NADF to provide capital alongside Sahel Capital, creating a blended financing structure that would lower the cost of borrowing for eligible businesses.

According to him, reducing financing costs would enable agribusinesses to direct more of their cash flow towards expanding operations rather than servicing loans.

Nwuneli commended NADF for its interventions in the agricultural sector, particularly its support for ginger production, provision of farm inputs to farmers and promotion of irrigation.

He said Sahel Capital was attracted to the partnership by the fund’s commitment to addressing critical challenges within Nigeria’s agricultural ecosystem.

He added that the firm had made 45 investments across eight African countries over the past 15 years, providing growth equity and private credit to businesses with annual revenues ranging from ₦500 million to ₦20 billion.

The Executive Secretary of NADF, Mr Muhammed Ibrahim, said the partnership was designed to move agricultural financing beyond conventional lending towards building an investment ecosystem capable of attracting more capital into the sector.

Ibrahim explained that the collaboration would combine public-sector and concessionary capital with private investment expertise to establish a sustainable financing framework for agribusinesses.

He said NADF would contribute its development mandate and understanding of national agricultural priorities, while Sahel Capital would provide market knowledge, investment expertise and experience across agricultural value chains.

According to him, the partnership would explore blended financing arrangements, including concessional funding and risk-sharing mechanisms, to improve access to capital for eligible agricultural businesses.

Other areas of collaboration would include identifying bankable agribusiness projects, information sharing, technical assistance and capacity building.

Ibrahim added that the arrangement would also create opportunities for other institutional investors to participate in financing viable agribusinesses and tap into investment opportunities within Nigeria’s agricultural sector.

 

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