Nigeria SEC issues six‑week ultimatum
Nigeria’s SEC gave market operators six weeks to submit recapitalization plans or face license downgrades — a regulatory push aimed at shoring up market stability and raising capital standards. The deadline creates a discrete policy shock that could be used to study governance and liquidity outcomes in emerging markets. (channelstv.com) (nairametrics.com)
The SEC published Circular No. 26‑1, dated January 16, 2026, formally revising minimum capital requirements for all regulated capital‑market entities under the Investments and Securities Act, 2025. (sec.gov.ng (sec.gov.ng)) The Commission posted revised minimum‑capital guidelines on its site and calendar entry on March 18, 2026, and set a full compliance deadline of June 30, 2027 for affected operators. (sec.gov.ng (home.sec.gov.ng)) The new regime sharply re‑benchmarks thresholds: broker‑dealers now face ₦2.0 billion (previously ₦300 million), dealers ₦1.0 billion (previously ₦100 million), registrars ₦2.5 billion (previously ₦150 million), underwriters/clearing firms ₦5.0 billion, and composite exchanges ₦10.0 billion. (nairametrics.com (nairametrics.com)) The SEC narrowed what qualifies as regulatory capital to high‑quality items — fully paid ordinary shares, qualifying irredeemable preference shares, share premium and retained earnings from audited profits — while excluding unrealised gains from capital recognition. (nairametrics.com (nairametrics.com)) The Commission said implementation plans must be board‑approved and comprehensive, and it warned that pending registration applications older than 12 months will lapse and require fresh filings under the new framework. (nairametrics.com (nairametrics.com)) Legal analyses and practitioner notes quantify the shock: sectoral minimums rose by ranges reported between about 200% and over 3,400% compared with the 2015 regime, a reset described as the most significant since 2015. (alliancelawfirm.ng (alliancelawfirm.ng))
