
The Digest:
Nigeria’s Securities and Exchange Commission has announced its most significant capital market reform in nearly a decade, dramatically raising minimum capital requirements for brokers, dealers, fintech firms, and digital asset operators in a bid to strengthen market resilience and weed out undercapitalized players.
Key Points:
- The SEC has introduced revised capital requirements for nearly all market operators, effective June 30, 2027.
- Broker-dealers must now hold ₦2 billion, up from ₦300 million, the sharpest increase among categories.
- Digital asset exchanges and custodians are newly included, with a ₦2 billion capital threshold each.
- Fund managers with over ₦20 billion in assets must maintain ₦5 billion in capital.
- Issuing houses providing full underwriting services must hold ₦7 billion.
- The reforms aim to enhance investor protection and align capital with operational risk.
- Analysts anticipate industry consolidation as smaller firms merge or exit.
Sources: Punch Newspapers