Nigeria’s Securities and Exchange Commission (SEC) has issued a far-reaching revision of capital requirements for virtually all capital market operators.
This is according to a circular released by the Commission on January 16, 2026, which replaces the long-standing 2015 capital regime and sets a compliance deadline of June 30, 2027.
The new framework aims to ‘improve market resilience’, weed out undercapitalised players, and reward firms with governance depth and scale.
The revised capital rules affect brokers, dealers, fund managers, issuing houses, fintech firms, and digital asset operators.
A dynamic rule also kicks in: any firm managing assets above N100 billion must hold at least 10% of assets under management as capital.
Digital asset firms, previously operating in regulatory limbo, are now fully captured.
The digital asset segment sees a clear shift from informal activity to formal oversight. With N2 billion required for digital exchanges and custodians, the SEC is sending a clear message: innovation will be encouraged only when backed by robust capital.
The capital rule changes are likely to accelerate a wave of consolidation, as smaller players struggle to meet the steep thresholds.
Operators may downscale, merge, or exit, while others may seek foreign investment or strategic partnerships to survive.
While this may shrink the number of market participants, it will raise the quality of those who remain.
For investors, this means a stronger safety net—operators with more robust financial cushions are better positioned to weather shocks and protect client assets.
For the SEC, the recalibration is strategic: fewer firms with stronger governance and balance sheets.
The industry now faces an 18-month window to comply, with the full implementation deadline set for June 30, 2027. By then, Nigeria’s capital market may look leaner, but also significantly stronger.