SEC Targets Market Stability With New Capital Requirements
By OBI DAVIES
NIGERIA’S capital market is set for major restructuring following the Securities and Exchange Commission’s decision to significantly raise minimum capital requirements for regulated entities.
The new framework, released on 16 January 2026 under the Investments and Securities Act 2025, replaces capital thresholds that have been in place for a decade. The SEC said the review was necessary to strengthen financial soundness, manage emerging risks and support innovation across traditional and digital market segments.
Brokerage firms are among the most affected. Client-execution brokers will now require ₦600 million in capital, while proprietary trading dealers must maintain ₦1 billion. Firms offering combined brokerage, trading, margin lending and advisory services will need ₦2 billion.
The regulator also moved to fully integrate digital asset operations into the regulatory system. Digital Asset Exchanges and Custodians will now be subject to a ₦2 billion minimum capital requirement, while ancillary virtual asset service providers must hold at least ₦300 million.
Fintech operators are not exempt. Capital requirements for robo-advisers increased tenfold to ₦100 million, while crowdfunding platforms must now maintain ₦200 million.
In the asset management segment, full-scope portfolio managers will now require ₦5 billion in capital, up from ₦150 million, reflecting the growing size of assets under management and associated risks.
Market infrastructure providers also face higher thresholds, with composite securities exchanges now required to hold ₦10 billion, clearing and settlement companies ₦5 billion, and central counterparties ₦10 billion.
The SEC has set 30 June 2027 as the compliance deadline, noting that transitional arrangements may be considered upon application. The Commission said further guidance on verification and compliance processes will be issued.
