SEC Gives Capital Market Operators Six Weeks Ultimatum to Submit Recapitalisation Plans
- The SEC has issued an ultimatum to capital market operators to submit recapitalisation or downgrade plans
- Operators must provide detailed implementation strategies, including funding and governance structures
- The commission says failure to comply with the directive may lead to sanctions, including licence restrictions
Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, technology and macroeconomic trends in Nigeria.
The Securities and Exchange Commission has directed capital market operators to submit board-approved recapitalisation or licence downgrade plans within six weeks, as part of new regulatory requirements, Daily Trust reported.
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The directive was contained in revised minimum capital guidelines issued by the Commission on March 18, 2026. According to the regulator, all operators are expected to provide detailed and implementable plans shortly after the June 30, 2027, compliance deadline.
Submission requirements, compliance expectations
The Commission said operators must submit comprehensive plans outlining their current capital position, funding strategies, governance structures, and risk considerations.
It added that the plans must include clear execution timelines and practical strategies for meeting the new thresholds.
According to the SEC, failure to present credible plans could attract sanctions, including licence restrictions and regulatory delays under the Investment and Securities Act (ISA) 2025 framework.
The regulator also clarified that pending applicants are not exempt from the directive, noting that applications older than 12 months will lapse and require fresh submissions.
Directive applies across all operators
The Commission stated that the requirement cuts across all categories of capital market participants, including brokers, dealers, fund managers, custodians, exchanges, and digital asset operators.
It said the move reinforces the urgency of compliance across the entire ecosystem.
New capital thresholds announced
The development follows a recent upward review of minimum capital requirements in the sector, to boost its performance and sustainability.
Under the revised structure, broker-dealers are now required to maintain a minimum capital base of N2 billion, up from N300 million, while dealers must meet N1 billion, compared to the previous N100 million.
Registrars are expected to hold N2.5 billion, an increase from N150 million, while underwriters and clearing firms are now benchmarked at N5 billion. Composite exchanges are required to have a minimum capital of N10 billion.
The Commission explained that the recapitalisation exercise is part of a broader, long-term reform aimed at improving market resilience and aligning Nigeria’s capital market with global standards.
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SEC cracks down on unregistered digital platforms
Legit.ng earlier reported that the SEC has issued a warning to fintech operators and digital investment platforms against operating without proper registration.
The commission launched its a Regulator/FinTech Clinic as part of efforts to strengthen oversight of Nigeria’s rapidly expanding digital finance ecosystem. The clinic is aimed at aligning technological innovation with regulatory compliance while ensuring adequate protection for investors in the capital market.
It stressed that unregistered digital platforms are a significant risk to investors in Nigeria’s capital market. A full list of platforms and companies it has closed down over the years has been released.
Source: Legit.ng
