Some stakeholders in the Nigerian capital market, including the Capital Market Academics of Nigeria (CMAN) and the Chartered Institute of Stockbrokers (CIS), have called on the Securities and Exchange Commission (SEC) to extend the deadline for the ongoing recapitalisation of regulated capital market entities from June 2027 to December 2027.
SEC, the capital market regulator, recently raised the minimum capital requirements, with brokers asked to increase their capital base from N200 million to N600 million, while dealers are required to have N1 billion instead of the current N100 million.
For broker-dealers, they are to get N2 billion instead of N300 million, reflecting multi-role exposure across trading, execution, and margin lending.
The agency said fund and portfolio managers with assets above N20 billion must hold N5 billion, while mid-tier managers must maintain N2 billion with private equity and venture capital firms to have N500 million and N200 million, respectively.
Digital sub-brokers are required to maintain N100 million in capital and corporate sub-brokers N50 million, up from N10 million each previously.
The SEC stated that the reforms aim to strengthen market resilience, enhance investor protection, discourage undercapitalised operators, and align capital adequacy with the evolving risk profile of market activities.
Speaking at a roundtable themed, Deconstructing the New Minimum Capital Requirements for Regulated Capital Market Entities in Nigeria, CMAN, led by Professor Uche Uwaleke, said while recapitalisation is necessary and deserves full support, the proposed timeline remains debatable considering the 2027 general elections.
He said election years are typically characterised by uncertainty and erratic investor behaviour, which could make capital mobilisation difficult.
Professor Uwaleke urged the SEC to consider extending the deadline to December 2027, effectively shifting the implementation period from 18 months to 24 months, saying that “There is no doubt that recapitalisation is necessary, but extending the deadline would better align with market realities.”
On her part, the first vice president of the Chartered Institute of Stockbrokers (CIS), Mrs Fiona Ahimie, said the timing of the exercise was problematic, even if the absolute capital amounts were not excessive, stressing that operators should not be conflicted between executing client transactions and sourcing capital for themselves, adding that extending the deadline was the most practical solution.