llNigeria’s SEC Strengthens Oversight with Capital Market Reforms and Investor Protection Drive

Abuja, January 17, 2026 The Securities and Exchange Commission (SEC) of Nigeria has unveiled a series of regulatory reforms and initiatives aimed at strengthening the country’s capital markets, enhancing investor protection, and aligning local practices with global standards. In a landmark move, the SEC raised minimum capital requirements for market operators across the industry. Brokers, dealers, fund managers, issuing houses, and digital asset platforms are now required to hold significantly higher capital levels, with a compliance deadline set for June 30, 2027. Brokers are required to maintain ₦600 million, up from ₦200 million, while dealers and broker-dealers must hold ₦1 billion and ₦2 billion respectively. Fund managers and digital asset platforms also face tiered increases to bolster market resilience and safeguard investor interests. “The goal is to create a stronger, more resilient market capable of attracting long-term investments,” SEC officials said. Analysts note that these reforms may trigger consolidation among smaller operators unable to meet the new thresholds. On market efficiency, the SEC has successfully transitioned Nigeria to a T+2 equity settlement cycle, reducing counterparty risk and improving liquidity. Efforts are underway to move toward a T+1 settlement cycle, further modernizing the country’s market infrastructure and aligning with global best practices. Investor protection remains a priority. Following Nigeria’s exit from the Financial Action Task Force (FATF) grey list, the SEC has urged market participants to maintain a strong compliance culture. The regulator has also issued repeated warnings about AI-driven investment scams and unlicensed platforms, highlighting the risks of deepfake endorsements and fraudulent promises of high returns. Platforms such as Glorious Wealth Fund and Shalom Coin (SHLM) have been flagged as unregistered and potentially fraudulent. As part of its digital transformation drive, the SEC has mandated all capital market operators to renew registrations by January 31, 2026, introducing a fully electronic process to improve efficiency. The commission has also launched a spoken-word version of the Investments and Securities Act (ISA) 2025 and a USSD verification service to empower investors to verify licensed operators via mobile devices. Looking ahead, the SEC plans to focus on capital market instruments such as infrastructure bonds, green bonds, and municipal bonds to finance sectors including power, transportation, housing, and digital infrastructure. The initiative aims to attract both domestic and foreign long-term investments while deepening Nigeria’s capital markets. With these reforms, the SEC is sending a clear signal that Nigeria is committed to robust regulatory oversight, modern market practices, and investor safety, positioning the country as an increasingly competitive hub for capital market activities in Africa.