SEC proposes N5bn capital threshold as Nigeria tightens online forex

The Securities and Exchange Commission (SEC) has proposed sweeping new regulations for online foreign exchange and Contracts for Difference (CFD) trading, including a minimum paid-up capital of N5 billion for technology and platform providers operating in or targeting Nigeria.

The draft Rules on Online Forex Trading and Contracts for Difference, published on September 1, 2026, are designed to bring the largely retail-driven forex market under formal licensing, supervision and investor-protection requirements. The proposals are not yet in force.

Under the framework, the SEC would regulate three categories of operators: online forex brokers/broker-dealers, introducing brokers, and technology/platform providers.

Market-making or B-Book brokers would require N3 billion in paid-up capital and minimum liquid capital of N2.4 billion or 10 percent of liabilities, whichever is higher. STP/ECN or A-Book brokers would need N2 billion, while technology and platform providers would face the N5 billion threshold.

Introducing brokers would require N30 million for individuals and N150 million for corporate entities.

The SEC also proposes that licensed operators maintain at least 30 per cent Nigerian ownership, with the required Nigerian shareholders being directors of the company. At least two directors, including the managing director or chief executive, would have to reside in Nigeria.

The proposed rules would extend to offshore platforms that target Nigerian residents by accepting Nigerian clients, listing Nigeria as a supported market, advertising locally, using Nigerian influencers or affiliates, or maintaining representatives or customer-support channels in the country.

The SEC Director-General Emomotimi Agama, has previously stated that unregistered forex and digital-asset trading platforms operating in Nigeria are illegal.

If approved, existing operators would have three months to submit registration applications and six months to achieve full compliance. The SEC would retain powers to suspend or revoke licences for serious breaches, insolvency, fraud or other regulatory violations.