Nigeria’s SEC Announces Major Capital Market Reform With Higher Minimum Capital Requirements
Abuja, Nigeria — The Securities and Exchange Commission of Nigeria (SEC) has unveiled a sweeping overhaul of minimum capital requirements for capital market operators, marking one of the most significant regulatory shifts in the nation’s financial sector in over a decade. The circular, issued on January 16, 2026, introduces elevated capital floors for brokers, dealers, fund managers, digital asset firms, fintech companies and other regulated entities.
Objective Behind the Revised Capital Framework
The SEC stated that the reforms are designed to strengthen market resilience, enhance investor protection, align capital adequacy with the growing complexity of market activities, and support orderly development of emerging segments including digital assets and commodities. Under the new framework, operators are given until June 30, 2027 to meet the revised thresholds.
Key Increases in Minimum Capital Thresholds
The new capital regime significantly raises requirements across categories. Highlights include:
- Brokers: increased to ₦600 million (from ₦200 million).
- Dealers: now require ₦1 billion (from ₦100 million).
- Broker-dealers and inter-dealer brokers: capital raised to ₦2 billion.
- Fund & Portfolio Managers: Tier 1 now ₦5 billion, Tier 2 ₦2 billion.
- Issuing Houses: ₦2 billion for non-underwriting and ₦7 billion for underwriting operations.
- Digital Asset Operators: exchanges and custodians now face ₦2 billion capital requirement; digital asset platforms set at ₦1 billion.
- Fintech Firms: robo-advisers now need ₦100 million; crowdfunding intermediaries ₦200 million.
Market Infrastructure and Systemic Safeguards
Market infrastructure institutions such as central counterparties (CCPs) and clearing/settlement companies were also impacted, with elevated capital thresholds aimed at bolstering systemic stability. The revised requirements pursue uniform risk coverage across traditional and innovative market segments, including financial technology and digital assets.
Industry Reaction and Market Outlook
Responses from capital market operators have been largely positive, with many viewing the reforms as long-awaited and necessary to improve investor confidence and deepen financial market integrity. Analysts expect some firms to explore recapitalization strategies, mergers, and strategic alliances to meet the new requirements before the compliance deadline.
Implications for Digital Assets and Fintech Innovation
By explicitly incorporating digital asset exchanges, custodians, and fintech intermediaries within the revised capital framework, the SEC’s announcement signals a shift toward a more regulated and resilient ecosystem for emerging financial technologies in Nigeria. The move also aligns with global trends in regulatory oversight of digital finance.
The SEC’s revised minimum capital requirements mark a watershed moment for Nigeria’s capital market. With an 18-month compliance window, market participants are now positioned to build stronger balance sheets, enhance risk management, and support sustainable economic growth while bolstering investor protection across both traditional and digital finance sectors.
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