The Securities and Exchange Commission (SEC) of Nigeria has increased minimum capital requirements for all regulated capital market entities. It disclosed this in a circular released on Friday, December 16, stating the aim is to boost market stability and align capital with evolving risk profiles. “This review is informed by the need to strengthen market …
Nigeria’s SEC Hikes Minimum Capital for Market Operators
The Securities and Exchange Commission (SEC) of Nigeria has increased minimum capital requirements for all regulated capital market entities.
It disclosed this in a circular released on Friday, December 16, stating the aim is to boost market stability and align capital with evolving risk profiles.
“This review is informed by the need to strengthen market resilience, enhance investor protection, align capital adequacy with the evolving risk profile of market activities, and ensure that regulated entities possess sufficient financial capacity to discharge their obligations in a sustainable manner,” the SEC stated.
According to the SEC, the capital market apex regulator, all regulated entities must comply by June 30, 2027.
Warning that non-compliance may potentially lead to suspension or withdrawal of registration, it said that it might grant transitional arrangements on a case-by-case basis.
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Under the new rules, broker-dealers must hold ₦2 billion, up from ₦300 million, while proprietary trading dealers need ₦1 billion, up from ₦100 million.
Fund managers now face tiered requirements, as Tier 1 (full scope) must maintain ₦5 billion, and Tier 2 (limited scope), ₦2 billion.
Managers with assets exceeding ₦100 billion must hold at least 10 percent of their assets as capital.
Among non-core entities, Tier 2 issuing houses with underwriting now require ₦7.00 billion, up from previous levels, while underwriters’ capital jumps from ₦200 million to ₦5.00 billion. Registrars and trustees are set at ₦2.5 billion and ₦2.00 billion, respectively.
Market infrastructure requirements are the highest as the SEC revised that central counterparties and composite exchanges must maintain ₦10 billion, while clearing and non-composite exchanges need ₦5 billion.
The commission also introduced capital rules for fintech and digital assets.
It said robo advisors must hold ₦100 million, crowdfunding intermediaries ₦200 million, and digital asset exchanges and custodians ₦2.00 billion.
Real-world asset tokenisation platforms require ₦1 billion, non-bank custodians now face ₦50 billion plus 0.1 per cent of assets under custody, while commodity market intermediaries require ₦500 million.
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X
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