The Securities and Exchange Commission (the “SEC” or the “Commission”) in furtherance of its mandate to regulate and develop the Nigerian capital market, has issued a significant revision to the minimum capital requirements applicable to all Capital Market Operators (“CMOs”). This revision was introduced through a circular released on 16 January 2026 (the “Circular”).
The Circular replaces the capital regime that has been in place since 2015 and sets a compliance deadline of 30 June 2027. According to the Commission, the revised framework is designed to strengthen market resilience, enhance investor protection, align capital requirements with the scope, complexity and risk profile of regulated activities, and support innovation and the orderly development of emerging market segments, including digital assets and commodities markets. The changes affect a broad range of operators, including brokers, dealers, fund managers, issuing houses, fintech firms and digital asset operators.
Brokerage, Dealing and Sub-Brokerage Services
Under the Circular, the minimum capital requirement for brokerage services was significantly raised. Brokers handling client execution will now be required to maintain a minimum capital base of ₦600,000,000.00 (Six Hundred Million Naira), an increase from ₦200,000,000.00 (Two Hundred Million Naira), while dealers engaged in proprietary trading have been increased to ₦1,000,000,000.00 (One Billion Naira), compared to the previous requirement of ₦100,000,000.00 (One Hundred Million Naira).
Broker-dealers offering combined services, including margin lending and advisory face a significant adjustment, with a new capital requirement of ₦2,000,000,000.00 (Two Billion Naira), from ₦300,000,000.00 (Three Hundred Million Naira). Inter-dealer brokers are similarly required to maintain ₦2,000,000,000.00 (Two Billion Naira), a marked increase from the former ₦50,000,000.00 (Fifty Million Naira) threshold.
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