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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.
In a financial landscape often tested by volatility, this recalibration seeks not just bigger players, but stronger foundations

Sources: Punch Newspapers