SEC Sets Higher Capital Thresholds for Market Operators

By: Aremu Toyeebaht

Nigeria’s Securities and Exchange Commission (SEC) has launched the most significant revision of minimum capital requirements for capital market operators since 2015, in a move to strengthen market stability and protect investors.

The new rules, outlined in a circular issued on January 16, 2026, give operators until June 30, 2027 to comply with the updated framework.

According to the SEC, the reforms apply to brokers, dealers, fund managers, issuing houses, fintech firms, digital asset operators, and market infrastructure providers. The aim is to align capital levels with evolving market risks and discourage undercapitalised operators.

Highlights of the revisions include:

• Broker-dealers: Minimum capital rises from N300 million to N2 billion, reflecting multiple roles in trading, execution, and margin lending.

• Fund and portfolio managers: Tiered requirements; firms with assets above N20 billion must hold N5 billion, mid-tier managers N2 billion.

• Private equity and venture capital: N500 million and N200 million, respectively.

• Digital asset firms: Exchanges and custodians must hold N2 billion, tokenisation platforms N500 million–N1 billion, robo-advisers N100 million.

• Issuing houses and advisory firms: Full underwriters N7 billion, advisory-only N2 billion.

• Market infrastructure providers: Composite exchanges and central counterparties N10 billion, clearinghouses N5 billion.

The SEC said the overhaul is critical to enhance market resilience, improve investor protection, and ensure that capital requirements reflect the risk profiles of different market participants.