The Securities and Exchange Commission (SEC) in Nigeria has announced a significant increase in the minimum capital requirements for all regulated capital market entities. This move is aimed at strengthening market resilience and enhancing investor protection. According to the SEC, the revised framework is contained in Circular No. 26-1 dated January 16, 2026, issued under the Commission’s mandate pursuant to the Investments and Securities Act, 2025.
The review seeks to align capital adequacy with the growing complexity and risk profile of market activities, ensuring that operators have sufficient financial capacity to meet their obligations sustainably. Minimum capital thresholds have been increased across various market functions, including core and non-core segments, market infrastructure institutions, fintech operators, virtual asset service providers, commodity market intermediaries, and capital market consultants.
In the brokerage services segment, the minimum capital for brokers handling client execution only has been raised from N200 million to N600 million, while broker-dealers offering both client execution and proprietary trading will now require N2 billion, up from N300 million. Inter-dealer brokers will see a significant increase from N50 million to N2 billion. Additionally, full-scope portfolio managers with assets above N20 billion will now be required to maintain N5 billion in capital, compared to N150 million previously.
The regulator has also introduced capital requirements for emerging segments, including virtual asset service providers and digital asset platforms. Digital asset exchanges and custodians will now be required to maintain N2 billion in minimum capital, while real-world asset tokenization platforms must hold at least N1 billion. Market infrastructure institutions, such as central counterparties and composite securities exchanges, have also seen significant increases in minimum capital requirements.
All affected entities must comply with the new minimum capital requirements by June 30, 2027, or face sanctions, including suspension or withdrawal of registration. The SEC may consider transitional arrangements on a case-by-case basis and will issue detailed compliance guidelines separately. The revised requirements take effect immediately from the date of publication.
The SEC’s move is part of its efforts to develop and regulate the Nigerian capital market, ensuring that regulated entities possess sufficient financial capacity to discharge their obligations in a sustainable manner. The increased capital requirements are expected to enhance investor protection and strengthen market resilience, ultimately contributing to the growth and development of the Nigerian capital market. With the new framework in place, market participants can expect a more robust and stable market environment, better equipped to withstand potential risks and challenges.
