Nigeria Hikes Capital Requirements for Capital Market Operators

BREAKING NEWSJanuary 18, 2026 at 8:38 PM UTC

TLDR

Nigeria's Securities and Exchange Commission raises capital requirements for firms in the capital market, affecting brokerage, fund management, fintech, digital assets, and market infrastructure.
Brokers now require minimum capital of ₦600 million, with varying thresholds for different services, such as proprietary trading and combined services.
Fund and portfolio managers face increased capital requirements, with full-scope managers overseeing assets above ₦20 billion needing ₦5 billion by June 30, 2027.

Nigeria’s Securities and Exchange Commission has raised minimum capital requirements for firms operating in the capital market, tightening rules across brokerage, fund management, fintech, digital assets and market infrastructure.

Under a circular issued on January 16, 2026, brokers handling client trades must now hold ₦600 million, up from ₦200 million, while dealers focused on proprietary trading need ₦1 billion. Broker-dealers offering combined services must meet a ₦2 billion threshold. Digital sub-brokers face a new minimum of ₦100 million.

Fund and portfolio managers saw some of the sharpest increases. Full-scope managers overseeing assets above ₦20 billion must now hold ₦5 billion, while limited-scope managers require ₦2 billion. Venture capital fund managers must meet ₦200 million, up from ₦20 million.

Non-core operators such as issuing houses, registrars and trustees also face higher thresholds, alongside fintechs, crowdfunding platforms and robo-advisers. Digital asset operators, including exchanges, custodians and token platforms, now fall under formal capital rules, with requirements reaching ₦2 billion for exchanges.

All firms must comply by June 30, 2027. The regulator said firms that fail to meet the new levels risk suspension or loss of registration

Points clés à retenir

The capital reset is likely to reshape Nigeria’s market structure. Smaller firms may merge, narrow their licenses or exit, while larger players gain share. The higher thresholds raise entry costs, which could slow new licenses in the short term but reduce failures during market stress. The rules also signal regulatory acceptance of digital assets and commodities as core market segments. By setting clear capital floors, the regulator brings these activities closer to traditional finance, which may attract banks, global firms and institutional investors. For fund managers, the tiered model links capital to assets under management. This reduces leverage risk and limits rapid balance sheet growth without funding. Large managers with foreign exposure face higher buffers, which could support stability during currency or market shocks. Overall, the changes point to a market built around fewer but stronger institutions. In the medium term, this may improve confidence among local pension funds, insurers and foreign investors who rely on regulated intermediaries to manage risk and custody assets.

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