Nigeria’s Securities and Exchange Commission (SEC) has introduced new minimum capital requirements for companies operating in the country’s capital market, including brokers, fund managers, and crypto-related businesses.
The new rules were announced in Circular No. 26-1, issued by the regulator, and replace the capital framework that has been in place since 2015. According to the SEC, all affected operators are expected to comply with the new requirements by June 30, 2027.
Higher capital thresholds across the market
Under the updated framework, the SEC has raised the minimum capital that licensed market operators must maintain to continue operating in Nigeria.
Stockbroking firms are now required to hold ₦600 million, up from the previous ₦200 million. Dealers must maintain ₦1 billion, a significant increase from ₦100 million, while broker-dealers are expected to hold ₦2 billion, compared to ₦300 million under the old rules.
Portfolio managers handling large investment portfolios are also affected. Tier-1 fund managers, who manage the highest level of assets, must now maintain a minimum capital base of ₦5 billion. The SEC said the changes reflect the growth of Nigeria’s capital market and the need for stronger financial backing among operators.
Crypto and digital asset firms are formally covered
The new capital requirements clearly extend to crypto and digital asset businesses, confirming the SEC’s intention to regulate the sector under the broader capital market framework.
Under the rules:
- Digital Asset Exchanges must maintain at least ₦2 billion
- Digital Asset Custodians are also required to hold ₦2 billion
- Digital Asset Offering Platforms must hold ₦1 billion
- Digital Asset Intermediaries and Platform Operators are required to maintain ₦500 million
- Other Virtual Asset Service Providers, including support and infrastructure services, must hold ₦300 million
This marks one of the clearest regulatory positions yet on the financial expectations for crypto firms operating in Nigeria.
Why the SEC updated the rules
The SEC said the revised capital requirements are meant to strengthen investor protection and ensure that licensed firms are financially capable of meeting their obligations.
The regulator noted that Nigeria’s financial ecosystem has expanded significantly over the past decade, driven by fintech innovation, rising retail participation, and the growth of digital assets. As a result, the older capital framework no longer reflected current market realities.
Existing firms have a transition period until June 30, 2027, to meet the new requirements. Companies that fail to comply risk regulatory sanctions, including licence suspension or withdrawal.
This policy is expected to lead to consolidation, as smaller firms may seek mergers, new investors, or partnerships to meet the higher thresholds. At the same time, the SEC believes the changes will lead to a more stable and trustworthy market environment for investors.
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