SEC Raises Minimum Capital Requirements for Market Operators, Fintechs, Others, Sets June 2027 Deadline

*Dealers from N100m to N1bn*Broker-dealer from N300m to N2bn

*Portfolio managers from N150m to N5bn

*Issuing houses from N200m to N7bn

Kayode Tokede

The Securities and Exchange Commission (SEC) has announced a comprehensive revision of minimum capital requirements for all categories of capital market operators, in a move aimed at strengthening the resilience and long-term stability of Nigeria’s capital market.

Those affected include core and non-core capital market operators, market infrastructure institutions, capital market consultants, financial technology firms, virtual asset service providers, and commodity market intermediaries.The capital market regulating body, in a circular dated January 16, 2026, obtained yesterday, fixed June 2027 as the compliance deadline for the new capital regime.

It stressed that the new framework, issued pursuant to the Investments and Securities Act, 2025, applies to entities regulated by the Commission and was designed to ensure that operators are better positioned to withstand market shocks while protecting investors’ interests.

A breakdown of the new capital requirements showed that the Commission raised capital requirements for Broker-Dealers to N2 billion from the long-standing 2015 capital requirements of N300 million.  THISDAY gathered that there are currently 100 active stockbroker firms, and 60 percent are Broker-Dealer on the Exchange.Also, the circular showed that brokers’ minimum capital requirement tripled from N200 million to N600 million, while dealers now require N1 billion, up from N100 million.

In addition, fund and portfolio managers are now subject to a tiered structure.Managers overseeing assets above N20 billion would need N5 billion as minimum capital from the 2015 capital regime of N150 million, while mid-tier managers must hold N2 billion as against previously held N150 million.Also, for portfolio managers, the circular stated that, “Any Fund and Portfolio Manager withNAV (Net Asset Value)/AuM (Assets Under Management) of more than N100 billion should have a minimum of 10 per cent of the NAV/AuM as capital.”

The commission disclosed that private equity and venture capital firms are now expected to hold minimum capital requirements of N500 million and N200 million, respectively.Non-core regulated functions, such as the Issuing House that perform non-Interest Finance services, advisory & Arrangement services, and no underwriting, are required to hold N2 billion capital requirement as against the N200 million.Issuing Houses with Underwriting that perform offers a ‘one-stop-shop’ for issuers, provide underwriting services, lender advisory and product development services are required by the Commission to have N7 billion minimum capital, as against the 2015 capital requirements of N200 million.

The digital asset segment saw a clear shift from informal activity to formal oversight. With N2 billion required for digital exchanges and custodians, the SEC is sending a clear message: innovation will be encouraged only when backed by robust capital.According to the Commission, the review was informed by evolving market dynamics, growing complexity of financial products, and the need to align capital adequacy with the risk profile of regulated activities.SEC said the revised thresholds would enhance investor confidence by ensuring that market participants maintain sufficient financial buffers to meet their obligations sustainably, even during periods of volatility.

It further stated that the revised minimum capital regime seeks to improve the financial soundness and operational resilience of market operators, while also promoting overall market stability and mitigating systemic risks. The Commission noted that the framework aligns capital requirements with the scope, scale, and complexity of operators’ activities, thereby reducing vulnerabilities that could arise from undercapitalisation within the financial system.

The new minimum capital rule changes are likely to accelerate a wave of consolidation, as smaller capital market operators may struggle to meet the steep thresholds.

Operators may downscale, merge, or exit, while others may seek foreign investment or strategic partnerships to survive.

Speaking with THISDAY, MD/CEO, Globalview Capital Limited,  Mr. Aruna Kebira noted that the new minimum capital requirements by SEC was a welcome development, stressing that the federal government’s vision of a $1 trillion economy by 2030 means all major players must rally round the set target.

“The banking sector has recapitalised, and the insurance sector is currently undergoing recapitalisation, and it is the turn of capital market operators. The new capital requirements will allow broker-dealers to expand into other West African markets and create room to trade other stocks outside the country.

“Definitely, the policy will drive liquidity and deepen the Nigerian capital market,” Kebira added.

Also, the CEO, Sofunx Investment & Communications, Mr. Sola Oni, stated that the increase in minimum capital requirements was significant to the capital market development.