SEC Raises Capital Requirements for Market Operators

Nigeria’s Securities and Exchange Commission has announced higher minimum capital requirements for all categories of capital market operators and has given firms until June 2027 to comply.

The regulator wants stockbrokers, dealers, issuing houses, trustees, fund managers, digital and other licensed operators to hold more “buffer” capital so that the market is safer and more credible.

What the new numbers look like

The increases vary by licence type. For example, reports on the new framework say tier-2 issuing houses with underwriting functions now face a minimum capital base of ₦7 billion, up from ₦200 million, while trustees move to ₦2 billion from ₦300 million.

Another breakdown published the same day also states that brokers rise to ₦600 million from ₦200 million, dealers rise to ₦1 billion from ₦100 million, and broker-dealers rise to ₦2 billion from ₦300 million.

SEC’s core argument is that the market has expanded in size, complexity and risk. When operators are thinly capitalised, a shock, such as heavy client losses, operational failure, cyber incidents or settlement issues, can spill into the wider market. A higher minimum capital is intended to reduce spillover risk and strengthen investor protection.

What it means for investors and firms

For investors, the policy signals a tougher supervision mood, which can improve confidence over time. For operators, it is a cost and a test: firms that cannot raise fresh capital may be forced to merge, downgrade their licence category, or exit. In the near term, expect more fundraising, restructuring, and competition among stronger players, while smaller firms focus on survival.

If the policy is enforced consistently, Nigeria’s capital market should have fewer but better-capitalised intermediaries, which can make trading, custody, and product innovation more resilient.

If you use a broker or fund manager, ask how they plan to meet the capital line, and watch for updates on licence renewals, mergers, or category changes. Capital cannot remove risk, but it can reduce failures.