Nigeria’s capital market is set for a major shake-up following the introduction of new minimum capital requirements by the Securities and Exchange Commission (SEC), in what has been described as the most far-reaching reform of the sector in more than a decade.
The revised framework, unveiled in a circular dated January 16, 2026, replaces the existing capital requirement regime that has been in place since 2015. The circular, obtained from the Commission’s website on Friday, affects nearly all categories of capital market operators and significantly raises the financial threshold for participation in the market.
Under the new rules, affected operators have been given a transition period extending to June 30, 2027, to meet the updated requirements. The Commission said the timeline is intended to allow firms to adjust their capital structures without disrupting market stability.
According to the SEC, the overhaul is designed to reinforce the resilience of Nigeria’s capital market, strengthen investor confidence and ensure that operators are adequately equipped to manage the risks associated with increasingly complex market activities. The Commission also noted that the new framework would help weed out weak and undercapitalised firms whose operations could pose systemic risks.
“The review seeks to align capital adequacy requirements with the evolving risk profile of capital market operations,” the SEC said, adding that the reforms are part of broader efforts to modernise market regulation and promote sustainable growth.
Market analysts say the revised requirements could lead to consolidation within the industry, as smaller firms may seek mergers, acquisitions or strategic partnerships to meet the new thresholds. Others believe the reforms will ultimately deepen the market by promoting stronger, better-capitalised institutions.
With the countdown to the 2027 compliance deadline now underway, capital market operators are expected to begin reassessing their financial positions as the sector prepares for a new regulatory era.
