Nigeria’s Securities and Exchange Commission (SEC) has unveiled a sweeping reform of capital requirements across the securities industry, sharply raising minimum thresholds for market operators as part of efforts to strengthen investor protection and financial stability. The new rules, announced this week in Abuja, replace the 2015 framework and give firms until June 30, 2027, to comply, with transitional arrangements to be considered on a case-by-case basis, according to MarketScreener.
Under the revised regime, stockbroking firms must now hold at least ₦600 million, up from ₦200 million, while broker-dealers are required to maintain ₦2 billion and proprietary dealers ₦1 billion, reflecting higher risk exposure, as outlined by the regulator. Capital thresholds were also raised for fund and portfolio managers, issuing houses, and underwriters, with requirements running into several billions of naira, a move analysts say is likely to accelerate consolidation in the industry, as reported by TheCable.
The reforms extend to digital asset exchanges and custodians, bringing fintech-led platforms fully under the SEC’s capital adequacy framework for the first time, according to details released by the commission. Regulators say this reflects the growing role of technology-driven products in Nigeria’s capital markets and the need to align oversight with emerging risks.
Explaining the rationale, SEC Director-General Emomotimi Agama said the overhaul is designed to eliminate weak operators and build a more resilient market. “The objective is to ensure that only properly capitalized and well-governed institutions operate in our market, in line with global best practice,” he said, adding that the reforms would deepen confidence and support long-term market growth, as stated by nairametrics.
