The Securities and Exchange Commission (SEC) has announced a significant upward review of minimum capital requirements for all regulated capital market entities in Nigeria, a move aimed at strengthening market resilience and enhancing investor protection.

The revised framework is contained in Circular No. 26-1 dated January 16, 2026, and was issued in line with the Commission’s statutory mandate under the Investments and Securities Act, 2025.

According to the SEC, the review is designed to align capital adequacy with the increasing complexity and risk profile of capital market activities, while ensuring that operators maintain sufficient financial capacity to meet their obligations sustainably.

Under the new regime, minimum capital thresholds have been substantially increased across core and non-core market functions, market infrastructure institutions, fintech operators, virtual asset service providers, commodity market intermediaries, and capital market consultants.

For brokerage services, the minimum capital requirement for brokers offering client execution only has been raised from ₦200 million to ₦600 million. Broker-dealers providing both client execution and proprietary trading will now be required to maintain ₦2 billion in capital, up from ₦300 million, while inter-dealer brokers will see one of the sharpest increases, from ₦50 million to ₦2 billion.

In the fund and portfolio management segment, full-scope portfolio managers with assets exceeding ₦20 billion will now be required to maintain a minimum capital of ₦5 billion, compared to the previous ₦150 million threshold. Additionally, fund managers with assets under management above ₦100 billion must now hold capital equivalent to at least 10 per cent of their assets.

Non-core market operators, including issuing houses, registrars, trustees, and underwriters, will also be subject to higher capital requirements. Issuing houses with underwriting capabilities must now maintain ₦7 billion in capital, while registrars will be required to hold ₦2.5 billion, up from ₦150 million.

The revised framework also introduces capital requirements for emerging market segments. Digital asset exchanges and custodians will now be required to maintain a minimum capital of ₦2 billion, while real-world asset tokenization platforms must hold at least ₦1 billion.

Market infrastructure institutions are equally affected, with minimum capital for central counterparties increased to ₦10 billion. Composite securities exchanges will now be required to maintain ₦10 billion in capital, up from ₦500 million.

The SEC stated that all affected entities must comply with the new minimum capital requirements on or before June 30, 2027. Failure to meet the deadline may result in sanctions, including suspension or withdrawal of registration.

The Commission added that transitional arrangements may be considered on a case-by-case basis, while detailed compliance guidelines will be issued separately. It also stressed that the revised requirements take effect immediately from the date of publication.

According to the SEC, the review is intended to strengthen the Nigerian capital market, enhance investor confidence, and ensure that regulated entities are adequately capitalized to withstand evolving market risks.