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Market-making forex brokers would face a proposed ₦3bn minimum paid-up capital requirement under the SEC’s draft framework.
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STP and ECN brokers would require at least ₦2bn, while technology and platform providers could face a ₦5bn threshold.
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The proposed rules would also require segregation of client funds and give the SEC greater oversight of offshore platforms targeting Nigerian traders.
September 22, (THEWILL) – The Securities and Exchange Commission is moving to tighten regulation of Nigeria’s online forex and contracts-for-differences market, with proposed higher capital requirements, stricter operating standards and stronger safeguards for customers’ funds.
The proposals will be a major focus of the Regulation Forum at the 2026 Lagos Finance Summit, scheduled for October 14 to 16 at the Landmark Event Centre, Victoria Island, Lagos.
The forum is expected to bring together forex brokers, introducing brokers, CBN-licensed banks, technology providers, legal practitioners and traders to discuss the proposed framework and provide feedback to the SEC.
Musa Kabul, Head of Marketing and Promotion at the Lagos Finance Summit, said the forum would allow market participants to scrutinise the proposals and contribute to the regulatory process.
“The Regulation Forum will provide a platform for market participants to examine the proposed rules, raise their concerns and make recommendations that can contribute to the development of an effective regulatory framework,” Kabul said.
SEC Proposes Higher Capital Thresholds
Under the draft framework, market-making forex brokers would be required to maintain a minimum paid-up capital of ₦3 billion.
Straight-through-processing and electronic communication network brokers would face a proposed ₦2 billion threshold, while technology and platform providers serving the market would be required to maintain at least ₦5 billion in capital.
The proposed thresholds could significantly alter the structure of Nigeria’s retail forex and CFD market by raising the financial requirements for existing operators and potential new entrants.
However, the requirements are not yet final.
The SEC published the draft rules on September 1 following the enactment of the Investments and Securities Act 2025. The proposals remain subject to stakeholder consultation and consideration by the Commission before they can take effect.
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Client Funds Face Tighter Protection
Another major proposal is the mandatory segregation of client funds.
Under the framework, brokers would be required to keep customers’ money in separate accounts with banks licensed by the Central Bank of Nigeria, separating client funds from the brokers’ own operating funds.
The SEC is also proposing greater oversight of offshore trading platforms that target Nigerian residents. This could extend the Commission’s regulatory reach beyond operators physically based in Nigeria.
For existing operators, the proposed framework provides three months to apply for registration and six months to comply with the new requirements once the rules become effective.
Stakeholders To Shape Final Rules
The consultation process could determine how the final framework balances stronger investor protection with the continued participation of existing operators in the retail forex and CFD market.
The proposed capital requirements, registration obligations, customer-fund safeguards and treatment of offshore platforms are therefore expected to be among the major issues raised during the consultation.
According to Kabul, the Regulation Forum is expected to produce a written industry response to the SEC, giving market participants a formal channel to submit concerns and recommendations before the Commission finalises the rules.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
