Nigeria’s capital market operators have largely thrown their weight behind the Securities and Exchange Commission’s sweeping decision to raise minimum capital requirements across the industry, describing the move as overdue, well-telegraphed and central to restoring confidence in a market expected to play a critical role in President Bola Tinubu’s push for a $1 trillion economy.
The new framework, released by the SEC on January 16, 2026, replaces the 2015 capital regime and gives operators until June 30, 2027, to comply. It affects virtually every segment of the market, including brokers, dealers, fund managers, issuing houses, market infrastructure providers, and, for the first time in a comprehensive way, digital asset operators.
Rather than triggering panic, the announcement has been met with a sense of inevitability among operators, many of whom say the regulator merely followed through on a process that had been openly discussed for months, according to NairaMetrics.
For Aruna Kebira, chief executive of Globalview Capital Limited, the timing itself reinforced the SEC’s credibility. He said the regulator had circulated a clear roadmap to the market and delivered exactly when it said it would.
“They brought us a calendar, and if you look at that calendar, January 16 was the date,” Kebira said. “They promised January 16, and they delivered. That tells you this wasn’t arbitrary.”
According to him, recapitalization had been a standing agenda item at Capital Market Committee meetings, with trade bodies such as the Association of Securities Dealing Houses of Nigeria and the Nigerian Exchange Group actively involved in consultations. In that sense, the new rules reflect a consensus-building process rather than a sudden regulatory shock.
Still, support has not been entirely unqualified. Kebira pointed to what he described as a technical inconsistency in how broker-dealer licenses were treated. Under the old logic, broker-dealer capital requirements were essentially a combination of broker and dealer thresholds. Maintaining that approach, he argued, would have implied a figure closer to N1.6 billion, rather than the new N2 billion requirement.
“That’s perhaps the only area where SEC could have handled it differently,” he said, while stressing that the clarity of the new figures removes long-standing ambiguity and allows firms to plan with certainty.
A recurring question since the announcement has been whether higher capital thresholds will force smaller firms out of the market. On this, operators are largely dismissive of doomsday scenarios. Kebira noted that the 18-month compliance window gives firms enough breathing space to raise capital, restructure, or adjust their license categories.
“June 2027 is enough time for any serious business to recapitalize,” he said. “There may be downgrading — broker-dealers becoming brokers, dealers becoming sub-brokers — but that’s orderly restructuring, not collapse.”
He also pointed out that many stockbroking firms are entering this phase with stronger balance sheets than in previous recapitalization cycles, partly due to proceeds from the Nigerian Exchange Group’s demutualization.
Concerns that recapitalization could lead to higher fees for investors have also been played down. Kebira said the last major recapitalization exercise did not result in higher commissions and argued that this one is unlikely to be different.
“Fees are regulated,” he said. “What this really does is give firms more capacity to do business and inject more liquidity into the market.”
That view is shared by other operators, including a senior market participant who requested anonymity. He said the SEC’s intention to strengthen the market’s capital base had been exhaustively discussed at last year’s Capital Market Committee meeting in Lagos.
“This will weed out the very small players,” he said, predicting mergers and acquisitions across the industry. “But clients won’t lose their money. Some firms will merge, others will move clients to bigger houses, and some will downgrade their licenses. That’s how markets evolve.”
Dr. David Ogogo, pioneer registrar and former president of the Institute of Capital Market Registrars, framed the reforms as part of a much longer conversation. He said operators had years of notice and ample opportunity to make representations to the regulator.
“The conversation has been on for years,” Ogogo said. “Those who were uncomfortable should have made representations, and I know some did. SEC must have considered these before arriving at the final figures.”
Ogogo acknowledged that the timing could have been shifted slightly later in the year, but said the June 2027 deadline provides adequate adjustment room. He also urged operators to view the new capital levels in a global context, noting that when converted to dollar terms, they are not out of line with what similar institutions hold in other markets.
Beyond capital figures, operators are now calling for clarity on implementation details, particularly what qualifies as acceptable capital. Questions remain around the balance between fixed and liquid assets, and how capital adequacy will be monitored in practice. There is also a strong push for more investor education to prevent misinterpretation of recapitalization as a sign of distress.
“There is no need for panic,” one operator said. “SEC needs to reassure investors that assets are held by custodians and that recapitalization does not mean firms are failing.”
Under the new rules, brokers must now hold N600 million in capital, dealers N1 billion, and broker-dealers N2 billion, reflecting their broader risk exposure. Fund managers move to a tiered structure, with large firms required to hold up to N5 billion, alongside a new rule mandating firms managing more than N100 billion to hold at least 10% of assets as capital. Digital asset operators, long operating in a grey zone, are now fully brought under regulation, with exchanges and custodians required to hold N2 billion.
The prevailing sentiment across the market is one of cautious support rather than resistance. While questions remain around structure and execution, most operators see the recapitalization drive as a necessary step toward deeper liquidity, stronger governance, and a capital market capable of supporting Nigeria’s larger economic ambitions.
