SEC Raises Capital Requirements for Market Operators

The Securities and Exchange Commission has announced a major overhaul of minimum capital requirements for capital market operators in Nigeria, a move aimed at strengthening market stability and investor protection.

Under the revised framework, which affects both core and non-core operators as well as market infrastructure institutions, fintech firms, virtual asset service providers, and commodity intermediaries, all regulated entities are expected to comply by June 2027.

The new requirements, issued pursuant to the Investments and Securities Act, 2025, significantly raise entry thresholds across several categories. Broker-Dealers will now be required to maintain a minimum capital base of ₦2 billion, up from ₦300 million, a benchmark that had remained unchanged since 2015.

The circular also raises the capital requirement for brokers from ₦200 million to ₦600 million, while dealers must now hold ₦1 billion, compared to the previous ₦100 million. The Commission said the changes are intended to ensure operators are better positioned to withstand market shocks and protect investors.