• SEC sharply increases capital thresholds across the securities industry

• Brokers, asset managers, issuers, and digital asset firms face higher requirements

• Reform could accelerate consolidation despite strong market momentum

Nigeria’s financial markets regulator has announced a sharp increase in capital requirements across the securities industry, a sweeping reform aimed at strengthening market resilience and improving investor protection.

In a Jan. 16 circular, the Securities and Exchange Commission said it has significantly raised minimum capital thresholds for brokers, dealers, asset managers, issuing houses, market infrastructure providers, and firms operating in digital assets.

Higher capital thresholds

Under the new rules, brokers must now hold minimum capital of 600 million naira, up from 200 million naira previously. Broker-dealers will be required to maintain 2 billion naira, while inter-professional intermediaries face one of the steepest increases, from 50 million naira to 2 billion naira. Proprietary traders must hold at least 1 billion naira.

Asset management firms are also heavily affected. Tier-one fund managers must now maintain minimum capital of 5 billion naira, compared with 150 million naira previously. In addition, firms managing more than 100 billion naira in assets will be required to maintain capital equivalent to 10% of assets under management.

Capital requirements have also been raised on the primary market. Issuing houses, which structure and organize capital raising operations, must now hold 2 billion naira. Underwriters responsible for guaranteeing and placing securities will be required to mobilize 7 billion naira, while independent underwriters will be subject to a 5 billion naira threshold.

The SEC said the reform is intended to strengthen market resilience, limit systemic risks, and better supervise firms considered undercapitalized. The regulator has for several years highlighted the insufficient capitalization of some intermediaries, which it said limited their ability to absorb rising market risks and protect investors. The move follows the banking sector recapitalization imposed by the Central Bank of Nigeria in 2024.

Rules have also been tightened for market infrastructure and digital asset operators. Cryptoasset trading and custody platforms must now hold at least 2 billion naira, while firms specializing in the tokenization of real-world assets are subject to a minimum capital requirement of 1 billion naira.

While the reform was widely expected, analysts say its scale could accelerate consolidation in the sector, potentially forcing weaker players to merge, restructure, or exit the market.

A market with strong momentum

The overhaul comes as Nigeria’s capital market remains on a strong trajectory. In 2025, the Nigerian Exchange recorded one of its strongest performances on record, with the benchmark All-Share Index rising by about 51% over the year, placing the market among the world’s top performers.

The rally pushed market capitalization close to the symbolic level of 100 trillion naira, a threshold widely cited as a sign of renewed investor confidence. Early in 2026, the positive momentum has continued, with the NGX All-Share Index still rising and market capitalization stabilizing around the 100 trillion naira mark.

Fiacre E. Kakpo