LAGOS – Nigeria’s Securities and Exchange Commission (SEC) has officially triggered the countdown for a structural overhaul of the financial sector, giving Capital Market Operators (CMOs) a six-week deadline to submit formal plans for meeting new, heightened capital requirements.
In a statement on its website the directive requires all licensed operators to present board-approved strategies by April 30, 2026, detailing whether they intend to raise fresh equity, pursue mergers and acquisitions, or opt for a voluntary license downgrade.
Firms that fail to submit a viable roadmap within this window face immediate regulatory “red-flagging” and potential suspension.
This move follows the SEC’s recent upward review of minimum paid-up capital across various categories. The reform aims to weed out “shell” companies and ensure that active participants possess the financial resilience to manage systemic risks.
Under the new regime, the capital floor for several functions has shifted dramatically. For instance, Broker-Dealers are now required to hold ₦2 billion, up from ₦300 million, while Full-Scope Fund Managers have seen their requirements jump to ₦5 billion.
Recognizing the steep climb for smaller indigenous firms, the SEC has institutionalized a “License Downgrade” pathway. Operators who cannot meet the multi-billion naira thresholds for broad licenses can apply to narrow their scope.
The SEC’s stance aligns with the Central Bank of Nigeria’s ongoing banking recapitalization, signaling a unified government effort to fortify the nation’s entire financial architecture against global economic volatility.
