Nigeria’s Securities and Exchange Commission (SEC) has announced a significant revision of the minimum capital requirements for all regulated entities operating in the country’s capital market. The updated framework, which takes effect for compliance by June 30, 2027, aims to strengthen financial stability, operational resilience, and investor protection across the sector. Market operators are now expected to meet these benchmarks or face potential sanctions, including suspension or deregistration.
The SEC emphasized that the revisions are designed to align capital requirements with the complexity, risk exposure, and scale of each entity’s operations. The move also seeks to encourage market innovation and orderly development, particularly in emerging areas like digital assets and commodities trading. According to the regulator, these changes will ensure firms have sufficient financial capacity to meet their obligations sustainably.
Under the new framework, traditional brokers, fund managers, and sub-brokers face steep increases in required capital. For example, client-executing brokers must raise their capital from ₦200 million to ₦600 million, while sub-brokers with digital operations must increase theirs to ₦2 billion. Fund and portfolio managers, depending on their tier and assets under management, could see requirements jump to as high as ₦5 billion by 2027.
The SEC also introduced new benchmarks for fintechs and digital asset service providers. Robo-advisers, crowdfunding intermediaries, and virtual asset operators must meet capital thresholds ranging from ₦100 million to ₦2 billion, reflecting the growing regulatory focus on technological innovation in Nigeria’s financial ecosystem. Commodity market intermediaries, including warehousing operators and brokers, were similarly affected, with minimum capital now ranging from ₦20 million to ₦500 million depending on scale and operations.
Industry analysts say the SEC’s revision signals a “survival of the fittest” scenario for market players, emphasizing financial discipline and risk management. While compliance will require significant capital planning, regulators and market participants agree that the updated requirements are crucial for long-term market stability and investor confidence. The Commission will monitor adherence closely, and non-compliant entities risk enforcement actions that could reshape Nigeria’s capital market landscape.
source: business day