By: Chidozie Nwali
For years, Nigeria’s capital market has lived with a paradox: it possessed the ambition of a global heavyweight but the financial “skin” of a lightweight. That era however, seems to be coming to an end. Earlier this January, the Securities and Exchange Commission (SEC) in its Circular 26-1, initiated the most aggressive recapitalization exercise in a decade.
By hiking thresholds by as much as 4,000% and setting a firm 18 months (June 30, 2027) deadline; just two months after moving from historical T+3 to T+2 settlement circle; signaling a”Great Reset” is underway, and Nigeria is building a fortress.
Life in a T+2 Market
While the talk of billions in new capital is the “hardware” upgrade for 2027, the market’s current “software” is already running faster. Last November, Nigeria successfully transitioned to a T+2 (Trade Date plus two days) settlement cycle.
This move from T+3 was more than a technical adjustment; it was a 33% increase in the velocity of capital. The Nigerian Exchange crossed N100 trillion ($66.6 billion) capitalization this January, and returned 51.19% in 2025 adding over N36.6 trillion in value within a single year.
“The transition to T+2 is not merely an operational achievement; it is a strategic signal. It represents a deliberate step toward strengthening investor confidence and firmly positioning our market within the standards that define world-class financial systems,” says Haruna Jalo-Waziri, MD/CEO of Central Securities Clearing System.
For the average investor, this means liquidity is no longer “trapped.” A sell order on Monday now puts cash in an investor’s hands by Wednesday. This operational efficiency is part of the SEC’s larger vision.
The Rapitilization: Why N7 Billion Matters
The SEC’s new capital floors are designed to eliminate the “briefcase broker” and birth a new class of “Super-Operators.” Under the new regime, the requirement for an Issuing House with Underwriting has jumped from N200 million to a staggering N7 billion.
“Our goal is a $1 trillion economy,” SEC Director-General Dr. Emomotimi Agama noted in his 2026 strategy unveiling. “This recapitalization is a necessary step toward building a reinforced intermediary base that can channel disciplined capital into productive sectors like rail, power, and digital infrastructure.” He said.
By forcing firms to hold more “skin in the game,” the SEC is ensuring that even in global uncertainties Nigerian firms won’t collapse. This resilience is the ultimate “safety net” for the domestic and international capital the country desperately seeks.
The “Great Reset” is an aggressive bid for continental dominance. By combining the current T+2 speed with high capital buffers, Nigeria is positioning its stock exchange market, Nigerian Exchange (NGX) as the “High-Velocity Alternative” to the Johannesburg Stock Exchange (JSE) in South Africa with the largest capitalization ($1.4 trillion ) in Africa, and Nairobi Stock Exchange (NSE), Kenya.
“Our priority is to ensure the capital market remains attractive and forward-looking. Markets are now attracting bigger companies, and we are creating the ecosystem where supply meets demand and exits become sustainable.” Says Temi Popoola, GMD/CEO of NGX Group
The 18-Month Race
The June 2027 deadline is already casting a long shadow. Industry experts, including Prof. Uche Uwaleke, Nigerian first Professor of Capital Markets
predicted a “Merger Mania” similar to the 2004 banking consolidation. Smaller firms must now choose: merge, downscale their licenses, or seek foreign strategic partners.
“The banking sector has recapitalized, and the insurance sector is undergoing it; now it is the turn of capital market operators,” analysts at ThisDay noted. This consolidation is expected to create firms capable of trading not just in Lagos, but across all West African markets.
The “Great Reset” is a two-act play. Act One was the successful move to T+2 late last year, proving technical modernization. Act Two is the 2027 recapitalization, providing the “shock absorbers” for a $1 trillion future.
Nigeria has spent years talking about its potential. With the fortress built and the engines running at T+2, it is finally putting its money where its mouth is.
SEC recapitalization: Nigeria’s bold play for Africa’s investment crown
By: Chidozie Nwali
For years, Nigeria’s capital market has lived with a paradox: it possessed the ambition of a global heavyweight but the financial “skin” of a lightweight. That era however, seems to be coming to an end. Earlier this January, the Securities and Exchange Commission (SEC) in its Circular 26-1, initiated the most aggressive recapitalization exercise in a decade.
By hiking thresholds by as much as 4,000% and setting a firm 18 months (June 30, 2027) deadline; just two months after moving from historical T+3 to T+2 settlement circle; signaling a”Great Reset” is underway, and Nigeria is building a fortress.
Life in a T+2 Market
While the talk of billions in new capital is the “hardware” upgrade for 2027, the market’s current “software” is already running faster. Last November, Nigeria successfully transitioned to a T+2 (Trade Date plus two days) settlement cycle.
This move from T+3 was more than a technical adjustment; it was a 33% increase in the velocity of capital. The Nigerian Exchange crossed N100 trillion ($66.6 billion) capitalization this January, and returned 51.19% in 2025 adding over N36.6 trillion in value within a single year.
“The transition to T+2 is not merely an operational achievement; it is a strategic signal. It represents a deliberate step toward strengthening investor confidence and firmly positioning our market within the standards that define world-class financial systems,” says Haruna Jalo-Waziri, MD/CEO of Central Securities Clearing System.
For the average investor, this means liquidity is no longer “trapped.” A sell order on Monday now puts cash in an investor’s hands by Wednesday. This operational efficiency is part of the SEC’s larger vision.
The Rapitilization: Why N7 Billion Matters
The SEC’s new capital floors are designed to eliminate the “briefcase broker” and birth a new class of “Super-Operators.” Under the new regime, the requirement for an Issuing House with Underwriting has jumped from N200 million to a staggering N7 billion.
“Our goal is a $1 trillion economy,” SEC Director-General Dr. Emomotimi Agama noted in his 2026 strategy unveiling. “This recapitalization is a necessary step toward building a reinforced intermediary base that can channel disciplined capital into productive sectors like rail, power, and digital infrastructure.” He said.
By forcing firms to hold more “skin in the game,” the SEC is ensuring that even in global uncertainties Nigerian firms won’t collapse. This resilience is the ultimate “safety net” for the domestic and international capital the country desperately seeks.
The “Great Reset” is an aggressive bid for continental dominance. By combining the current T+2 speed with high capital buffers, Nigeria is positioning its stock exchange market, Nigerian Exchange (NGX) as the “High-Velocity Alternative” to the Johannesburg Stock Exchange (JSE) in South Africa with the largest capitalization ($1.4 trillion ) in Africa, and Nairobi Stock Exchange (NSE), Kenya.
“Our priority is to ensure the capital market remains attractive and forward-looking. Markets are now attracting bigger companies, and we are creating the ecosystem where supply meets demand and exits become sustainable.” Says Temi Popoola, GMD/CEO of NGX Group
The 18-Month Race
The June 2027 deadline is already casting a long shadow. Industry experts, including Prof. Uche Uwaleke, Nigerian first Professor of Capital Markets
predicted a “Merger Mania” similar to the 2004 banking consolidation. Smaller firms must now choose: merge, downscale their licenses, or seek foreign strategic partners.
“The banking sector has recapitalized, and the insurance sector is undergoing it; now it is the turn of capital market operators,” analysts at ThisDay noted. This consolidation is expected to create firms capable of trading not just in Lagos, but across all West African markets.
The “Great Reset” is a two-act play. Act One was the successful move to T+2 late last year, proving technical modernization. Act Two is the 2027 recapitalization, providing the “shock absorbers” for a $1 trillion future.
Nigeria has spent years talking about its potential. With the fortress built and the engines running at T+2, it is finally putting its money where its mouth is.
Akinwande
ThinkBusiness Africa
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