ABUJA, Nigeria (VOICE OF NAIJA)-Nigeria’s Securities and Exchange Commission has rolled out a sweeping review of minimum capital requirements for almost all capital market operators, representing the most extensive reform since 2015.
The adjustments, contained in a circular dated January 16, 2026, and accessed on its website on Friday, replace the existing framework and allow market operators until June 30, 2027, to meet the new standards.
The SEC explained that the reforms are designed to bolster market resilience, improve investor protection, curb the activities of undercapitalised operators, and ensure capital adequacy keeps pace with the changing risk landscape of market operations.
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According to the circular, “The revised framework applies to brokers, dealers, fund managers, issuing houses, fintech firms, digital asset operators, and market infrastructure providers.”
Key highlights include:
Brokers: Minimum capital raised from N200 million to N600 million.
Dealers: Increased to N1 billion from N100 million.
Broker-dealers: Raised sharply from N300 million to N2 billion, reflecting exposure across trading, execution, and margin lending.
Fund and portfolio managers: Tiered structure, with firms managing assets above N20 billion required to hold N5 billion, while mid-tier managers must maintain N2 billion.
Private equity and venture capital firms: Set at N500 million and N200 million, respectively.
Dynamic rule: Firms managing assets exceeding N100 billion must maintain capital equal to at least 10 per cent of assets under management.
“Digital asset firms, previously in a regulatory grey area, are now fully covered: digital exchanges and custodians must maintain N2 billion each, while tokenisation platforms and intermediaries face thresholds of N500 million to N1 billion. Robo-advisers must hold N100 million.
“Other segments are also affected: issuing houses offering full underwriting services must hold N7 billion, advisory-only firms N2 billion, registrars N2.5 billion, trustees N2 billion, underwriters N5 billion, and individual investment advisers N10 million.
Market infrastructure providers carry some of the highest obligations, with composite exchanges and central counterparties required to maintain N10 billion each, and clearinghouses N5 billion,” the SEC added.
Analysts predict that the higher capital benchmarks will drive consolidation across the industry, with smaller firms likely to scale down, merge, or exit.
The SEC expects that a smaller number of stronger and better-governed firms will improve investor protection and reinforce systemic stability.
With the 18-month transition period running up to the June 30, 2027, compliance deadline, the SEC’s action underscores a strategic push toward a leaner, better-capitalised, and more resilient Nigerian capital market.