Nigeria’s Securities and Exchange Commission (SEC) has announced new minimum capital requirements for operators in the Nigerian capital market, raising the thresholds for stockbrokers, dealers, fund managers, issuing houses, and digital asset companies.
In a circular released on Friday, the Commission unveiled a revised capital framework to replace the 2015 structure, giving operators until June 30, 2027 to comply.
Under the new rules, brokers must now hold N600 million, dealers N1 billion, while broker-dealers face a higher threshold of N2 billion due to their broader risk exposure.
Fund managers will operate under a tiered system, with large firms needing up to N5 billion. A new rule also requires firms managing over ¦ 100 billion to hold 10 per cent of assets as capital and Digital asset operators are now fully regulated, with exchanges and custodians required to hold N2 billion.
Private equity fund managers must hold ¦ 150 million, while managers of Collective Investment Schemes (CIS) and Alternative Investment Funds such as private equity, venture capital, and infrastructure funds with net asset values above N20 billion are subject to stricter requirements.
Portfolio managers with assets under management exceeding N100 billion must maintain a minimum of 10 per cent of NAV/AuM as capital. Tier 2 fund and portfolio managers, with limited scope, will face lower thresholds tied to their NAV and pooled fund creation limits.
Explaining the rationale, SEC stated: “Pursuant to its statutory mandate under the Investments and Securities Act, 2025, to regulate and develop the Nigerian capital market, the Commission hereby issues this circular on the revision of minimum capital applicable to all categories of regulated capital market entities.
GIK/APA
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