BREAKING: SEC raises capital requirements for brokers, fund managers, digital firms
Nigeria’s Securities and Exchange Commission (SEC) has unveiled a major overhaul of capital requirements for capital market operators, affecting brokers, fund managers, issuing houses, fintech firms, and digital asset companies. The circular, released on January 16, 2026, replaces the 2015 capital framework and sets a compliance deadline of June 30, 2027. The new rules are designed to strengthen market resilience, eliminate undercapitalized firms, and reward operators with strong governance and scale.
Under the revised framework, capital requirements have surged dramatically across the board. Brokers now face a threefold increase from N200 million to N600 million, while dealer firms must hold N1 billion, up from N100 million. Broker-dealers, juggling multiple roles in trading and margin lending, see their requirement jump from N300 million to N2 billion. Fund and portfolio managers are subject to a tiered system, with top-tier managers overseeing more than N20 billion in assets needing N5 billion in capital. Private equity and venture capital firms also face new thresholds of N500 million and N200 million, respectively.
Digital finance and technology-driven firms are also directly impacted. Exchanges and custodians must hold N2 billion each, tokenization platforms face thresholds between N500 million and N1 billion, and even robo-advisers are required to maintain N100 million in capital. By formalizing oversight of digital asset operators, the SEC signals that innovation will be supported only when backed by robust financial stability, bridging a long-standing regulatory gap.
The implications of the SEC’s move are far-reaching. Smaller players may be forced to merge, scale down, or exit the market, while others could seek foreign investment or strategic partnerships to comply. This consolidation is expected to reduce the number of market participants but improve the quality and resilience of those that remain, providing investors with a stronger safety net against market shocks. Market infrastructure players, including composite exchanges and clearinghouses, face some of the highest capital obligations, underscoring the Commission’s focus on systemic stability.
The 2026 capital reforms mark a strategic shift in Nigeria’s financial regulation, following the SEC’s 2023 Digital Assets Rulebook that formalized Virtual Asset Service Providers. By replacing the outdated 2015 framework, the Commission aims to modernize oversight as collective investment schemes, private equity, and digital finance expand in scale and complexity. With the full implementation deadline set for mid-2027, Nigeria’s capital market is poised to emerge leaner, more consolidated, and more robust than ever before.
source: nairametrics