SEC Raises Minimum Capital for Brokers, Dealers in Major Market Reform
- The SEC has revised minimum capital requirements for most capital market operators in Nigeria
- Brokers, dealers, fund managers, and digital asset firms are among those affected
- The SEC says the reforms will strengthen investor protection and market stability
Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, technology and macroeconomic trends in Nigeria.
Nigeria’s Securities and Exchange Commission (SEC) has announced a major review of minimum capital requirements for capital market operators, introducing new thresholds that will take effect from June 30, 2027.
The commission disclosed this in a circular dated January 16, 2026, stating that the new framework replaces the existing capital regime that has been in place since 2015.
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According to the SEC, the reforms are aimed at strengthening the Nigerian capital market, improving investor protection, and discouraging the operation of undercapitalised firms.
The regulator added that the changes are designed to align operators’ capital levels with the risk profile of their activities in a rapidly evolving market, The Cable reported.
New requirements apply to multiple operators
The revised requirements apply broadly across the industry, covering brokers, dealers, broker-dealers, fund and portfolio managers, issuing houses, registrars, trustees, fintech firms, digital asset operators, and market infrastructure providers.
Under the new rules, the minimum capital for brokers has been increased from N200 million to N600 million, while dealers are now required to maintain N1 billion, up from N100 million.
Broker-dealers will see their capital threshold rise significantly from N300 million to N2 billion, reflecting their wider exposure across trading and related activities.
The SEC also introduced tiered capital requirements for fund and portfolio managers.
Firms managing assets above N20 billion must now hold N5 billion in capital, while mid-sized managers are required to maintain N2 billion.
New rule for asset managers
In addition, companies managing assets above N100 billion must keep at least 10 per cent of their assets under management as capital.
Private equity firms are now required to hold a minimum of N500 million, while venture capital firms must maintain N200 million.
Digital asset operators, which the SEC noted were previously in a regulatory grey area, are now fully captured under the framework.
Digital exchanges and custodians are required to maintain N2 billion each, while tokenisation platforms and intermediaries face capital thresholds ranging from N500 million to N1 billion. Robo-advisers are required to hold a minimum of N100 million.
Other operators affected include issuing houses, which must now maintain N7 billion for full underwriting services or N2 billion for advisory-only services.
Registrars are required to hold N2.5 billion, trustees N2 billion, underwriters N5 billion, and individual investment advisers N10 million.
Market infrastructure providers face some of the highest requirements, with composite exchanges and central counterparties expected to maintain N10 billion each, while clearinghouses must hold N5 billion.
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Market analysts say the new requirements are likely to trigger consolidation across the industry, as smaller firms may be forced to merge, restructure, or exit the market, PUNCH reported.
The SEC, however, maintained that the reforms will result in fewer but stronger operators, ultimately improving governance, stability, and investor confidence in the capital market.
The commission added that the 18-month transition period is intended to give operators sufficient time to adjust to the new framework as Nigeria moves towards a more resilient and better-capitalised capital market.
SEC warns of investment scams
Legit.ng earlier reported that the SEC has repeatedly warned Nigerians against using unverified investment platforms, including Voya Investment Management, to invest in the capital market.
According to the SEC, the operators of the Voya platform have falsely presented themselves as being supervised by the Commission and have displayed a document described as a certificate of identity verification purportedly issued by the regulator.
The Commission denied issuing or endorsing any certificate displayed by the company, describing the platform’s claims of regulatory approval as false and misleading.
Source: Legit.ng
