Nigeria’s Securities and Exchange Commission (SEC) has introduced a significantly revised minimum capital framework for capital market operators, marking one of the most extensive regulatory overhauls in years.
The new rules, issued in a circular on Friday, raise financial thresholds across multiple categories of market participants, aiming to strengthen market resilience and improve investor protections.
Under the revised schedule of minimum capital requirements, many segments of the capital market will face substantially higher financial entry and operating thresholds. For example:
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Brokerage Services:
– Broker (client execution only) must hold ₦600 million (up from ₦200 million).
– Dealer (proprietary trading) now requires ₦1.0 billion (from ₦100 million).
– Broker–Dealer firms face a ₦2.0 billion requirement (previously ₦300 million). -
Fund and Portfolio Managers:
– Full-scope portfolio managers must now have at least ₦5.0 billion in capital (from ₦150 million).
– Limited-scope managers are required to hold ₦2.0 billion (from ₦150 million).
– Private equity and venture capital fund managers have new thresholds of ₦500 million and ₦200 million, respectively. -
Fintech and Digital Asset Firms:
– Robo-advisers must now maintain ₦100 million (up from ₦10 million).
– Crowdfunding intermediaries are set at ₦200 million (from ₦100 million).
– Digital Asset Exchanges and custodians must hold ₦2.0 billion. Ancillary virtual asset service providers must now have at least ₦300 million.
Other affected groups include issuing houses with underwriting services, now required to maintain ₦7.0 billion, and clearing and settlement companies, which must hold ₦5.0 billion under the new framework.
The SEC gave all affected entities until June 30, 2027, to meet the revised capital requirements.
Firms that fail to meet the new thresholds within this period risk regulatory sanctions, including suspension of operations or loss of registration.
Regulators say the changes reflect a drive to align Nigeria’s capital market with global best practices and respond to evolving risks, especially in digital finance and fintech sectors.
