Nigeria’s Securities and Exchange Commission (SEC) has announced a sweeping revision of minimum capital requirements for capital market operators, marking the most significant regulatory overhaul of the sector in over a decade.
The new framework, detailed in a circular issued on January 16, 2026, replaces the previous capital regime introduced in 2015. Market operators have been given an 18-month transition period, with a compliance deadline set for June 30, 2027.
According to the SEC, the reforms are designed to strengthen market resilience, enhance investor protection, discourage weakly capitalised operators, and better align capital adequacy with the growing complexity and risk profile of modern capital market activities.
“The revised framework applies to brokers, dealers, fund managers, issuing houses, fintech firms, digital asset operators, and market infrastructure providers,” the Commission said.
Under the new rules, capital requirements have risen sharply across key segments. Stockbrokers will now be required to maintain a minimum capital base of N600 million, up from N200 million, while dealers will see their threshold increase tenfold from N100 million to N1 billion. Broker-dealers face one of the steepest jumps, from N300 million to N2 billion, reflecting their exposure across trading, execution and margin lending activities.
Fund and portfolio managers will operate under a tiered structure. Firms managing assets above N20 billion must now hold N5 billion in capital, while mid-tier managers are required to maintain N2 billion. Private equity firms will need N500 million, while venture capital firms must meet a N200 million threshold. In addition, firms managing assets above N100 billion will be subject to a dynamic rule requiring them to hold at least 10 per cent of assets under management as capital.
For the first time, digital asset firms—previously operating in a regulatory grey area—are fully covered under the SEC’s framework. Digital exchanges and custodians must each maintain N2 billion in capital, while tokenisation platforms and intermediaries face requirements ranging from N500 million to N1 billion. Robo-advisers will be required to hold a minimum of N100 million.
Other market segments are also affected. Issuing houses offering full underwriting services must now hold N7 billion, while advisory-only firms require N2 billion. Registrars must maintain 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 hold N10 billion each, and clearinghouses N5 billion.
Market analysts expect the higher thresholds to accelerate consolidation within the industry, as smaller operators may be forced to merge, downscale operations, or exit the market altogether. The SEC, however, believes the outcome will be a leaner, better-governed ecosystem made up of stronger firms capable of safeguarding investor interests and ensuring systemic stability.
With the transition period running until June 30, 2027, the reforms signal a decisive shift by the regulator toward a more robust, better-capitalised and resilient Nigerian capital market.