Nigeria’s SEC Raises Capital Requirements for Market Operators, Firms Must Comply by June 2027

Abuja, Nigeria – The Securities and Exchange Commission (SEC) has issued a sweeping increase in minimum capital requirements for all capital market operators (CMOs), setting a compliance deadline of June 2027. The move aims to strengthen investor protection and enhance the resilience of Nigeria’s capital market.

The SEC said the updated framework reflects the need for well-capitalised operators capable of withstanding market shocks and supporting sustainable growth.

Major Increases for Issuing Houses and Trustees

Under the new rules, tier-2 issuing houses with underwriting functions must now maintain a minimum capital base of N7 billion, a dramatic rise from the previous N200 million. Trustees are also required to hold N2 billion, up from N300 million.

The regulator stressed that the revisions apply to all categories of market operators. Firms that fail to meet the thresholds by the June 2027 deadline risk sanctions or loss of operating licenses.

Strengthening Nigeria’s Capital Market

SEC officials described the move as a critical step toward creating a more robust, transparent, and investor-friendly capital market. Analysts say the new capital thresholds will ensure operators are better positioned to manage risk and maintain market stability during economic shocks.

The commission noted that the reforms are part of ongoing efforts to align Nigeria’s capital market with global best practices and enhance investor confidence.