January 16, (THEWILL) — Nigeria’s Securities and Exchange Commission (SEC) has unveiled sweeping new capital requirements for operators in the capital market, significantly raising financial thresholds for fintech companies, digital asset firms, brokers, fund managers and other market participants.
The new standards, announced in a circular issued on Friday, January 16, replaced the 2015 capital framework and set June 30, 2027, as the deadline for full compliance.
According to the Commission, the revised rules are designed to improve market resilience, protect investors, and ensure that regulatory requirements reflect the scale, complexity and risks associated with modern financial services businesses.
“The recalibration aims to strengthen financial soundness across the market and align Nigeria’s regulatory environment with global best practices”, the SEC said.
Robo-advisers, digital platforms offering automated investment services, will now require a minimum capital of ₦100 million, up from ₦10 million, while crowdfunding intermediaries must maintain ₦200 million, double the previous requirement.
Virtual Asset Service Providers (VASPs) face some of the steepest increases. Digital Assets Exchanges and Digital Assets Custodians must now hold minimum paid-up capital of ₦2 billion each, while Ancillary Virtual Asset Service Providers are required to maintain ₦300 million.
The SEC said this move signals a clear shift toward formal regulation of digital finance, ensuring innovation is backed by robust financial buffers.
Brokers’ minimum capital has increased from ₦200 million to ₦600 million, while dealers now require ₦1 billion, up from ₦100 million. Broker-dealers face a sharp rise from ₦300 million to ₦2 billion.
Fund and portfolio managers are now subject to a tiered capital structure. Managers overseeing assets above ₦20 billion must hold ₦5 billion in capital, while mid-tier managers must maintain ₦2 billion. Private equity fund managers must meet a ₦500 million threshold, while venture capital firms require ₦200 million.
Issuing houses offering full underwriting services must now maintain ₦7 billion in capital, while advisory-only firms require ₦2 billion. Registrars, trustees and underwriters must hold ₦2.5 billion, ₦2 billion and ₦5 billion, respectively, while individual investment advisers are now required to meet a ₦10 million minimum.
Market infrastructure institutions carry the highest capital obligations. Composite exchanges and central counterparties must each maintain ₦10 billion, while clearinghouses require ₦5 billion, underscoring the SEC’s focus on safeguarding systemic stability.
While the new capital regime may likely reduce the number of operators, the SEC said it would enhance governance standards and financial resilience among those that remain. For investors, the reforms are expected to provide stronger protection, as better-capitalised firms are more capable of absorbing shocks and safeguarding client assets.
The Commission warned that failure to comply with the revised thresholds by June 30, 2027, could result in sanctions, including suspension of operations or withdrawal of registration.
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