ABUJA, Jan 16 (Reuters) – Nigeria’s markets regulator has sharply raised capital requirements across the securities industry, tripling the minimum for brokers and imposing multi-billion-naira thresholds on underwriters, exchanges and fund managers, a circular showed on Friday.<\/p>\n
The move is the strongest push yet by Nigeria’s Securities and Exchange Commission for wider financial-sector recapitalisation, marking a sweeping overhaul after years of warnings over thinly capitalised firms and following the central bank’s 2024 banking reset.<\/p>\n
Sign up here.<\/a><\/p>\n The regulator said the measures would strengthen market resilience, protect investors and bring digital-asset platforms more firmly under its oversight.<\/p>\n The new framework takes immediate effect. Firms have until June 30, 2027, to comply or risk suspension or loss of licences, though the regulator may grant transition plans case-by-case.<\/p>\n Under the overhaul, brokers must now hold 600 million naira ($423,143) in capital, up from 200 million, while proprietary dealers must hold 1 billion naira, a tenfold leap.<\/p>\n Broker-dealers must carry 2 billion naira, up from 300 million, and inter-dealer brokers face one of the steepest jumps to 2 billion naira from just 50 million.<\/p>\n Analysts had expected increases, but their scale underlines a push for stronger balance sheets and tougher investor safeguards. The new thresholds are likely to reshape the industry, favouring larger players and squeezing smaller firms into mergers, acquisitions or strategic pivots, analysts said.<\/p>\n Fund management firms also face big adjustments. Tier-1 managers, those running collective investment schemes, and alternative funds with up to 40% foreign exposure must now hold 5 billion naira, up from 150 million. Tier-2 managers must keep 2 billion naira, while managers overseeing assets above 100 billion naira must hold capital equal to at least 10% of assets.<\/p>\n Primary market operators also see big increases. Issuing houses must hold 2 billion naira, underwriters 7 billion naira, and stand-alone underwriters 5 billion naira, all up from 200 million.<\/p>\n Market-infrastructure providers must now hold 5\u201310 billion naira, including 10 billion for central counterparties.<\/p>\n The SEC also raised capital floors for digital-asset firms, pushing exchanges and custodians to 2 billion naira and setting a 1 billion-naira minimum for real-world-asset tokenisers. It ordered commodities collateral managers and warehouse operators to hold 500 million naira each.<\/p>\n ($1 = 1,417.9600 naira)<\/p>\n Reporting by Elisha Bala-Gbogbo. Editing by Mark Potter<\/p>\n Our Standards: The Thomson Reuters Trust Principles., opens new tab<\/a><\/p>\n