The Securities and Exchange Commission (SEC) has officially announced an increase in minimum capital requirements for all categories of capital market operators (CMOs).
The SEC, in a circular in Friday, said the upward review was informed by the need to strengthen market resilience, enhance investor protection.
According to the SEC, the revised minimum capital framework also seeks to align capital requirements with the scope, complexity, and risk exposure of regulated activities.
Other objectives of the exercise include promoting market stability and systemic risk mitigation, and supporting innovation and orderly development of new market segments, including digital assets and commodities markets.
“This circular applies to all entities regulated by the commission, including but not limited to core and non-core capital market operators; market infrastructure institutions; capital market consultants; financial technology (FinTech) operators; virtual Asset Service Providers (VASPs); and commodity market intermediaries,” the commission said.
Under the new policy, the minimum capital for brokerage services was significantly raised.
The SEC said brokers handling client execution will now be required to maintain N600 million, up from N200 million, while dealers engaged in proprietary trading must raise up to N1 billion, compared to the previous N100 million.
Broker-dealers offering combined services, including margin lending and advisory, will need N2 billion, up from N300 million, while inter-dealer brokers will now be required to have N2 billion minimum capital, compared to N50 million previously.
For fund and portfolio management, tier-1 portfolio managers with assets above N20 billion must now hold N5 billion, up from N150 million, while tier-2 managers will require N2 billion.
The regulator increased the capital base of private equity fund managers to N500 million, while venture capital fund managers will now need N200 million.
Minimum capital for issuing houses has been raised to N2 billion for non-underwriting firms and N7 billion for those offering underwriting services, from N200 million previously.
The capital for registrars was increased to N2.5 billion, while rating agencies will now require N500 million, up from N150 million.
Trustees are now required to maintain N2 billion capital, while SEC slammed N5 billion on underwriters, with Investment Adviser (Corporate) expected to have between N5 million to 50 million, and N2 million to N10 million for Investment Adviser (Individual).
Market infrastructure institutions were also affected by the review. Central counterparties (CCPs) must now hold N10 billion, clearing and settlement companies N5 billion, and composite securities exchanges N10 billion.
For digital asset operators, the SEC introduced new capital thresholds. Digital asset exchanges must maintain N2 billion, digital asset custodians N2 billion, while digital asset offering platforms will require N1 billion.
Fintech operators such as robo-advisers must now hold N100 million from N10 million, while crowdfunding intermediaries will require N200 million from the previous N100 million.
Commodity market intermediaries also face higher thresholds, with warehousing operators now required to maintain up to N500 million, while collateral management companies with national or international reach must hold N500 million– up from N50 million.
Capital requirements for capital market consultants were revised upward to N25 million for corporate entities from 5 million, N2 million for individuals from N0.5 million, while the partnership category was raised to N10 million from N2 million.
The SEC said it may grant transitional arrangements on a case-by-case basis where justified, adding that detailed guidance on compliance and capital verification processes will be issued separately.
The commission noted that the circular takes immediate effect and is issued pursuant to its statutory mandate under the Investments and Securities Act, 2025, to regulate and develop Nigeria’s capital market.
The SEC directed all affected entities to comply with the revised minimum capital requirements on or before June 30, 2027, warning that failure to meet the deadline could attract sanctions, including suspension or withdrawal of registration.
