In a major regulatory overhaul, Nigeria's Securities and Exchange Commission (SEC) has announced a sweeping increase in the minimum capital requirements for all operators within the nation's capital market. The move, detailed in a circular issued on Friday, 17th January 2026, is designed to fortify market resilience and enhance investor protection.
New Capital Thresholds for Key Market Players
The commission has set a substantial new benchmark for issuing houses that provide underwriting services at N7 billion. For non-underwriting issuing houses and trustees, the new capital base is now N2 billion each. This upward review, according to the SEC, is necessary to align the regulatory capital of firms with the scale, complexity, and risk profile of their activities.
The new framework casts a wide net, applying to a broad spectrum of entities regulated by the SEC. This includes:
- Core and non-core capital market operators
- Market infrastructure institutions
- Capital market consultants
- Financial technology (fintech) operators
- Virtual asset service providers (VASPs)
- Commodity market intermediaries
Detailed Breakdown of Revised Requirements
The adjustments are significant across the board. For traditional brokerage and dealing services, the changes are pronounced:
- Brokers handling client execution must now hold N600 million, up from N200 million.
- Dealers engaged in proprietary trading require N1 billion, a sharp rise from N100 million.
- Broker-dealers offering combined services need N2 billion (previously N300 million).
- Inter-dealer brokers must maintain N2 billion, compared to just N50 million before.
In the fund management space, tier-one portfolio managers with assets over N20 billion now require N5 billion in capital, a massive jump from N150 million. Tier-two managers need N2 billion. Private equity fund managers' capital base is now N500 million, while venture capital fund managers require N200 million.
The reform also touches other critical segments:
- Registrars: N2.5 billion
- Rating Agencies: N500 million (up from N150 million)
- Underwriters: N5 billion
Embracing Digital Assets and Fintech
Acknowledging the growth of new asset classes, the SEC has introduced fresh capital requirements for digital asset operators. Digital asset exchanges and custodians must each maintain N2 billion, while platforms for digital asset offerings require N1 billion.
For fintech operators, robo-advisers now need N100 million (up from N10 million), and crowdfunding intermediaries must hold N200 million (previously N100 million).
Deadline and Consequences for Non-Compliance
The SEC has given all affected entities a deadline of June 30, 2027, to meet the revised capital requirements. The commission warned that any operator failing to comply within this timeframe faces potential regulatory sanctions. These could include the suspension or outright withdrawal of their registration.
The regulator noted that it may consider transitional arrangements on a case-by-case basis for justified applications. It also stated that detailed guidance on compliance procedures and capital verification would be issued separately. The circular takes effect immediately from its date of publication.
This comprehensive capital review is positioned as a strategic step to promote market stability, mitigate systemic risk, and support innovation across Nigeria's evolving financial landscape, including in digital assets and commodities markets.
