Revised Minimum Capital (MC) for Regulated Capital Market Entities

1. INTRODUCTION

The Securities and Exchange Commission (“the Commission”), pursuant to its statutory mandate under the Investments and Securities Act, 2025, to regulate and develop the Nigerian capital market, hereby issues this Circular on the revision of Minimum Capital (MC) applicable to all categories of regulated capital market entities.

This review is informed by the need to strengthen market resilience, enhance investor protection, align capital adequacy with the evolving risk profile of market activities, and ensure that regulated entities possess sufficient financial capacity to discharge their obligations in a sustainable manner.

2. OBJECTIVES

The revised MC framework seeks to:

• Enhance the financial soundness and operational resilience of market operators;
• Align capital requirements with the scope, complexity, and risk exposure of regulated activities;
• Promote market stability and systemic risk mitigation; and
• Support innovation and orderly development of new market segments, including digital assets and commodities markets.

3. SCOPE OF APPLICATION

This Circular applies to all entities regulated by the Commission, including but not limited to:

• Core and non-core capital market operators;
• Market infrastructure institutions;
• Capital market consultants;
• Financial technology (FinTech) operators;
• Virtual Asset Service Providers (VASPs); and
• Commodity market intermediaries.

4. REVISED MINIMUM CAPITAL

The revised Minimum Capital for regulated entities are set out below. All capital figures are stated in Nigerian Naira (₦).

(Detailed tables follow, spanning the full scope of Core Functions, Non-Core Functions, Market Infrastructure, Consultants, Fintechs, Virtual Asset Service Providers, Commodity Market Intermediaries, and Other Entities.)

5. TIMELINE FOR COMPLIANCE

All affected entities are required to comply with the revised Minimum Capital Requirements on or before 30 June 2027. Entities that fail to meet the prescribed requirements within the stipulated timeline shall be subject to appropriate regulatory sanctions, including suspension or withdrawal of registration, as may be determined by the Commission.

6. TRANSITIONAL ARRANGEMENTS AND GUIDANCE

The Commission may, upon application and on a case-by-case basis, consider transitional arrangements where justified. Detailed guidance on compliance modalities and capital verification processes shall be issued separately.

7. EFFECTIVE DATE

This Circular takes effect from the date of publication.